00:00:04:09 – 00:00:55:20
Jay Shorr
Welcome to Shorr Solutions: The Podcast. I’m your host, Jay Shorr. I’m the CEO and founder of Shorr Solutions, a national and award-winning consulting firm, assisting aesthetic and surgical practices with their operational, administrative and financial success. I have an amazing team of practice management experts and clients across the U.S. and as an industry expert with firsthand experience owning a multi-million-dollar cosmetic dermatology and plastic surgery practice. Listen in as I lend you my expertise and best tips to successfully manage and grow your aesthetic practice. I will also be bringing in guests along the way, so get ready to be equipped to operate your aesthetic practice strategically and profitably. Welcome to Shorr Solutions: The Podcast.
00:00:55:22 – 00:01:47:12
Hello everybody, and welcome to another episode of Shorr Solutions: The Podcast, and I’m your host, Jay Shorr. Today we’re going to be speaking about something that every business person should know, not only because of your business, but even in your personal life. And today’s episode is called Don’t Take the First Offer six Negotiation Tips for getting the best results. This is kind of like my favorite because I’ve always said every dollar that you generate in revenue, maybe 20% 30% of that or $0.20 or $0.30 on a dollar is profit. But when you negotiate the best way possible, every dollar that you save is an actual profit dollar. So let’s talk about different ways we negotiate.
00:01:47:13 – 00:03:02:18
Now, for those of you who are business owners, you as an employer negotiate every single time we hire somebody and every time it comes time for a performance review that’s associated with a raise. Because the process of negotiating pay with your employees is a negotiation skill. I’ve always said that employment on both sides, from the employer side and from the employees side, is always a negotiation and a use-use situation in the most positive manner. And what do I mean by that? Well, as an employer, we use our employees to help us generate revenue to help us become more successful as a business. And naturally, our staff, the absolute most important resource that any business has, uses us for a paycheck. Negotiating for employee benefits outside of your vendors. Whether it is health care reimbursement, whether it is paid time off, whether it’s vacation or sick days inclusive of that. All of these different things that we get involved in are actually negotiations with our team.
00:03:02:20 – 00:03:55:02
So as a buyer, we negotiate all the time. So what do we negotiate for? Well, equipment, supplies we have to try to get the best deal that we can don’t we? Marketing advertising from our vendors, whether it is social media and website, many times a negotiation is pretty straightforward. I will buy a product or a service for a prescribed amount of money. Yet we like to do. We even negotiate different terms and conditions. Well, when we buy something, if we need to finance it, there’s financing options for these large purchases and what type of financing options are there? Well, do we want to purchase it? Do we want to lease it? Do we want to take a loan? And that is a totally different lecture altogether that we can go.
00:03:55:02 – 00:05:30:11
And then of course, credit card processing fees is a negotiation because most of you out there, although you might say that you really understand credit card processing, 90% don’t because there is a thing called interchange. And interchange is what visa, Mastercard, American Express and Discover charge not negotiable. It is the additional fees that your credit card processor or the middleman the clearinghouse that they charge in their fees for their profit. So you have to be very, very careful because most people really don’t understand. And once you determine what it is that you’re negotiating or purchasing, quite frankly, how do you know that you’re getting the best deal? In other words, how do you negotiate? Me personally, the thing that I don’t like negotiating the most is purchasing jewelry. It’s not that I don’t want to purchase jewelry from my wife. It’s I don’t know how to properly negotiate jewelry because I don’t know all of the quality. Because no two diamonds and no two rubies and no two things of gold are identical. They’re all so different. And since I don’t really know the quality of something, I’m really, like negotiating in the dark, that type of a negotiation becomes, what am I most comfortable with? And when there’s a people, both people on both sides are comfortable. That’s called a win win. So let’s get to it with the top six tips.
00:05:30:13 – 00:06:41:19
Tip number one understanding the other person’s needs and objectives. Well first of all, that’s very important because I have a need to purchase something and you as a seller have an objective to sell something, even if it’s in the plastic surgery and med spa business, the other person’s needs are they want a procedure. You’re objective, quite frankly selling it to them. So what is the other person looking for? What are you looking for? What’s the happy medium? And don’t show an immediate need. That’s if you’re the buyer. I never show an immediate need because it takes away all of the offense that I have. Because somebody will say to me, how would you feel if you were able to buy this car? Oh, I’d feel wonderful about it, but I already have a car. So this is just something I want, not something I necessarily need in capital equipment. Yes, I’d love to have it. However, I can wait for it until the time is right. All right. So you’ve got to be very, very careful.
00:06:41:19 – 00:11:00:16
Tip number two. Don’t be afraid to ask questions and insist on answers. Let me give you an example. Do you ever go into negotiation about something? And when you walk away, you say, I forgot to ask that question, but it’s never really too late if you haven’t already signed on the bottom line, because don’t be afraid to ask that question if you have a need to ask something. Don’t allow the person on the other side to give you an answer that you’re not 100% comfortable with. I didn’t say 95%. I said 100%. And if they tell you I’ll get back to you, then that’s exactly the answer you give when it comes time to consummating and finalizing the deal. When you get back to me with your answer, I’ll give you my decision. It’s really quite simple. All right, so next, you know, be sure to keep an eye out for the hidden details with employees considering negotiations not only on wages but on flexible schedules, coverage of cell phones specified details with vendors on samples, financing rebates, returning products. Keep an eye out for the hidden details. This is what I call section two, subsection A sub, subsection iii in that two point font that has the whereas is and heretofore is and whereby, you know, all the legal jargon. Now look, I love our lawyers because they keep us out of trouble and they help us to make sure that we’re doing everything right. However, these agreements, every agreement is written to benefit the seller, not the buyer. So you have to be sure to keep an eye out for the hidden details. What is it that you’re responsible for that you didn’t know? Warranty. Shipping. What happens if you need a loaner? If it has to go back, who pays for the shipping on the back? When does the warranty actually start? Does it start when it leaves their warehouse, or does it start when you’re completed your in-service training? I advise every one of my clients you ensure that that warranty starts after the in-service of your training, because it could leave the warehouse at one date, and one month later you may be completed with your training. Now, look, I don’t ever like to be a Donnie or a Debbie Downer, but did you ever feel like you’re the 91st day breakdown of a 90 day warranty? Did you ever feel like you’re the person in the speed booth at a supermarket for ten packages or less, and everybody’s got 11 or 12? Did you ever go through a cash only and somebody tries to pull out a credit card? Same thing. Always want to watch out for those hidden details. You have to look like a good poker player and look for the twitch factor. No. What do I mean by that? There’s a thing in poker called a tell and what it tell is, is when the cards are dealt, you have got microsecond or microseconds to watch the other person’s reaction. So when I used to play poker, I never picked up my cards until everybody else’s cards were dealt and they picked the cards up. And I would look at each player and look at their face to see what their reaction was, the moment they looked at their cards. And then I would pick up my cards. Now when I negotiate, I kind of maybe give a twitch every once in a while like this. Kind of make the person on the other side feel that I’m uncomfortable with this transaction. Now what does that do? It makes the other person feel that they don’t have 100% complete control, because now I’m not in the smile mode, I’m in a twitch factor mode, or I’m uncomfortable about something. I do it intentionally because this way the other person is more readily assessable to give me an alternative deal if they don’t feel that I’m comfortable. Because doesn’t everybody want to close the deal right away instead of waiting and waiting?
00:11:00:18 – 00:12:28:17
Yes. We’re going to take a quick break and a slight intermission. I’d like to take a moment to tell you about our conversion cascade online course. With this self-guided and powerful course, you and your team will be able to master acquiring and retaining more patients as a step by step sales funnel training. This course is designed to help you and your team attract more patients, convert calls to consults, convert consoles to treatments and procedures, and keep patients coming back for more. Not only will our conversion cascade online courses help to strengthen and develop your team’s phone sales and customer service skills, it will also serve as a valuable onboarding training tool for each and every new team member. Plus, in the course, you’ll receive downloadable marketing checklists, phone scripts, conversion tracking tools, and more. So why not sign up for the course today? It only takes less than 4 hours to complete and you can finish at your own pace and you’ll have lifetime access. And as a special thank you for being our podcast listener, we’re giving you 20% off. Just enter the Discount Code “podcast” to start saving today. Click the link in our show notes to sign up for the Conversion Cascade Online course, acquire and retain more patients right now.
00:12:28:19 – 00:15:15:14
Tip number three. Prepare and compare. Do it like a spreadsheet kind of a thing. But look, here’s an example of a graphic of a clipboard. You draw a line down the middle option A, option B and do your research and have all the information and then look over the fact side by side, because on the one side the option A is pro and on the other side option B might be con. What you want to know. Do the benefits outweigh the risk? What do I mean by that? The benefits are I’m going to get a lot of patients. The benefits are I’m going to generate a lot of procedures. The benefits are I’m going to make hopefully a lot of money. What’s the con? A I don’t have the money to buy it. B I now need to finance it at a more unfavorable rate with the economy the way it is today. C do I have all the patients that I need to be able to perform this procedure with the new piece of equipment that I’m going to get? I have to market it, advertise it, it’s going to cost me all this money. So prepare and compare. Is it the right piece of equipment for me at the right time, or is that alternative to that as well? Then they go through the phases from the consult to an agreement to a purchase. Three types you have to listen, educate and consult. God gave us two ears, one mouth. That’s so we listen. And I want to be educated about what it is that I’m going to buy. I may do my own research to determine is that the best piece of equipment? Is that the best procedure for me? Is that the best car for me? Yes, sure. There’s a lot of wants. What about the needs? Needs should always override the wants. Unless you have everything you need. And then. Then you can just afford to buy what you want. And then you have the legitimate consult to work out all of the details. Now look facts versus opinions. You’ve heard me say this many, many times. If it’s your opinion against my opinion, you don’t stand much of a chance. If it’s your opinion against my facts, you probably don’t stand the chance at all. If it’s your facts against their facts or my facts, it could be a stand off. But what is your facts against their or my opinion in a fair negotiation, that’s your best shot.
00:15:15:16 – 00:16:22:07
Tip number four understand their levels of authority and the limits. And don’t waste your time with the runaround. Example I have to check with my boss. I’ve got to check with my wife. I use I have to check with my business partner. I have to check with my wife. I use that as an excuse. So don’t waste your time with the runaround. Understand their levels of authority and the limits. I call it political impotence. And what that means is, have you ever gone into somewhere mostly like a car dealership? Or. And you want to negotiate something and you’re not ready to buy it yet, or you are ready to buy it, but you’re not sure. And then they want to get their sales manager. And then there comes the general manager, and then comes the vice president, and then maybe the owner. I personally like to deal with the top level of authority. Don’t waste my time because. Sometimes. And it’s no fault of the salesperson, they don’t have the level of authority to properly give you that deal.
00:16:22:09 – 00:17:27:18
Tip number five insist. I’ll say it again insist on putting everything in writing. You have to avoid the he said she said, meaning that later on down the line, if it’s not in writing, that person may no longer be there. And you’re going to say, they told me so and it’s not in writing, and therefore it’s not a legitimate binding in contract, because the only way that verbal is an agreement in contract is in poker. I call, I raise, I fold. Oral contracts aren’t legally binding because it’s a hearsay. And you can’t prove that in a court of law if it ever had to be litigated. And look, the only time that you go back to a contract is when something goes wrong. If everything is fine, you never go back to a contract. It sits in some drawer. Now that shows my age. It’s it’s in some drawer. There isn’t any contracts and paper much anymore. It’s all done online and DocuSign and everything like that.
00:17:27:20 – 00:18:18:18
And lastly, tip number six don’t, and I’ll repeat, don’t be afraid to walk away from the deal because there are always more things to sell than there are people to buy. And therefore, if the deal’s not right for you, walk away. And if the deal is right, you can always go back and somebody will welcome you with open arms no matter how they feel about you. Because a deal is a deal is a deal.
Ladies and gentlemen, thank you for joining me and another episode of Shorr Solutions: The Podcast, and I look forward to having you listen to episode 105 in our next podcast. Good luck. God bless and happy negotiating.
00:18:18:20 – 00:19:51:19
So that wraps up today’s episode of Shorr Solutions: The podcast. If we mentioned any website links, you can find them in our show notes to work directly with me and our award-winning team of consultants to increase efficiency, increase revenue and decrease costs in your aesthetic practice, schedule a free consult with us today. We will help you establish and refine your aesthetic practice’s protocols for maximum efficiency and productivity, decrease your expenses and increase your profitability with an expert financial analysis of your business. Attract more patients, convert calls to consults, convert consults to treatments and keep patients coming back for more. With our sales training, coaching and complimentary access to our conversion cascade online course. Recruit, hire and train new team members and manage any staff turnover with our human resource expertise plus more, head over to our show notes and click on the link to schedule a free 30-minute consult with us today. And if you enjoyed today’s episode, don’t forget to spread the word and share this episode with your friends, colleagues and the rest of your team. Remember to also follow us on social media @ShorrSolutions and sign up for our e-newsletter. You’ll learn about our latest tips, blog posts, services, videos, webinars and more. Links to our social media channels, and to sign up for our e-newsletter are in our show notes. So see you next time and remember to leave us a review and subscribe or more valuable content.
