President Trump is famous for writing about “the art of trading,” writes Bernice Ross. How can you leverage his strategies for your clients?
For over 30 years, I have been training agents on how to overcome client objections. An important step in this process is understanding whether the client is an “oncoming” buyer or seller or an “outgoing” buyer or seller. Once you understand this difference, you will know exactly which closing strategy will be most effective when your opponent objects.
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When you “move towards the client” you are excited and happy about your movement, but when you “move away from the client” you are escaping a painful situation.
If President Trump does end the war with Iran, it will be through the application of this principle and what he calls “leverage” and what I call “turning the pain around.”
Clients coming closer and clients moving away
One of the most important questions to ask during a listing consultation or meeting with a buyer is, “What is your motivation for moving?” “Getting Moved” clients are excited to move into their next home and can’t wait to live in it. On the other hand, sellers who are going through an ugly divorce or other scary situation can’t wait to “move away” from their current situation.
As for how to negotiate, we envision a bright future by moving toward the client. That’s all the good things a client can enjoy once they get going.
If you work with “move-in” clients who are renters, a great closing is equivalent to a “pain-easing” closing. This is something I’ve used in marketing for years. “Did you pay your landlord’s mortgage again this month?” Our marketing postcard featured a man holding a cigar and a few bills spread out in his hand.
“Art of the Deal” currently in progress
When Donald Trump published The Art of the Deal in 1987, it became a huge bestseller. Here are 11 fundamental principles from Trump’s book that explain the key ingredients for successful negotiations.
Think big: Don’t settle for small gains, pursue truly ambitious deals. If you protect the negatives, the positives will take care of themselves. Always structure your trades to allow for the worst-case scenario. Make the most of your options: Keep as many avenues open as possible to avoid being backed into a corner. Know your market: Do thorough homework so you understand every player, every price, every motivation better than the other side. Take advantage of leverage: Know exactly what your opponent needs (or fears) most and take advantage of their pressure points. Enhance your location: Increase awareness and realism of what you’re selling, making it more appealing. Get the word out: Get the word out and let the right people know about your strengths. Fight back: If someone tries to push you away, immediately push back harder. Deliver the goods: Once the deal is closed, executing it flawlessly will make your reputation part of the influence for your next deal. Keep costs in check: Relentlessly monitor every expense to avoid profit leakage. Have fun: Treat the process like a fun game. The energy is contagious and keeps you sharp.
Use negotiation to ease pain
There is no doubt that the bombing, the destruction of Iran’s military, and the killing of its leader was a massive “turn the pain around” move, but it only seemed to further strengthen the Iranian leadership’s resolve to fight.
Sure, you can be aggressive in a negotiation to “soften the pain,” but as we’ve seen with Iran, this often causes the other side to further defend their position.
A method I have found very helpful is to ask simple questions and allow students to answer on their own. This is why this approach is so powerful. They’re the ones saying what’s wrong, and you’re not involved in the decisions. Simple questions to ask:
“If I decide not to sell (or not buy), what is the quality of the substitute?”
This often brings to the surface people who are hesitant to trade. If someone really needs to move, they’ll usually figure it out based on what they just told you.
Will President Trump’s strategy win?
While the 11 basic principles can certainly be applied to how you run your business, asking clients about the “quality of their alternatives” is a powerful strategy that actually works.
The reason it works is because you’re not pushing or arguing. Instead, you are simply asking the client to consider the pain they are currently experiencing and what will happen if they do not take action.
We are currently witnessing the ultimate “pain overturn” scenario unfolding in real time in Iran. We’ll soon find out whether President Trump can close the biggest deal of his life.
