3 Top Tips for Negotiation

Tired of endless back-and-forth disagreements with your customer?

Here are a few negotiation tips that can help:

1. Set your rules.

Many people likely have a set of rules or values that they just won’t compromise. If you find negotiations breaking your rules and going against your values, it may not be worth negotiating.

2. Ask.

Don’t be afraid to aim high but do not make any ultimatums. Usually these types of offers are out of place. If you don’t ask, the answer is always no.

3. Be willing to compromise.
Expect to make compromises and plan what terms you are willing to compromise on. Even if the first offer is better than you’d hoped for, do not take it. Take time to “think about it” or make a minor change back.  If you accept the first offer they might not feel good about the deal they made with you. Everyone wants to negotiate and feel they got a good deal.

With thanks to:
“Top 10 Negotiation Techniques for Buyers and Sellers: Tips for Negotiating Real Estate”, By Wendy Patton

Sale and Rent Back banned by FSA

The FSA has stepped in following a high profile court case involving families who sold thier homes to the company North East Property Buyers on a sale and rent back scheme.  In return for selling their homes at a 70% discount, families were promised that they could stay in their properties for life as tenants. However, when the company defaulted on the mortgages and went bust in 2009 the banks threatened repossession.

The home owners started a civil case which was spearheaded by nine ‘lead’ householders of whom four subsequently appealed to the Court of Appeal, claiming that as victims of a property scam, they had an over-riding right to stay in their homes. Unfortunately for them the Court of Appeal has backed the 2010 High Court judge’s ruling, that any rights the tenants had been promised could not take priority over legal mortgages. Lord Justice Etherton said it was “impossible not to feel the greatest sympathy” for the residents who have now been advised to find alternative accomodation.

The FSA first intervened in the sector in June 2009 and implemented an interim regime a month later. This was replaced by a full regime in June 2010 which saw firms operating sale and rent back schemes being forced to apply for permits under the new regulations.  However, following a review of all 22 regulated sale and rent-back firms, the FSA has referred one firm to its enforcement division while the others have either stopped taking on new business or cancelled their permissions.  Five have agreed to undertake past business reviews which may result in consumer redress.

The FSA says that most sale and rent-back transactions should never have happened and has closed the market down “for the foreseeable future”.  Whilst the FSA has been at pains to use the word ‘temporary’ in relation to the closure of the market, it is hard to see how sale and rent-back could make a comeback given the sullying of its reputation. The FSA is urging anyone who has been a customer of a sale and rent-back firm to contact their provider or seek professional advice.

Nausicaa Delfas, the FSA’s head of mortgage and general insurance supervision, said: “ The resulting temporary closure of this market could have been avoided if sale and rent-back firms had taken the time to fully understand their regulatory responsibilities and customers’ needs.”

 

Additional liscensing introduced for HMO’s

Oxford City Council have been leading the way in creating additional local legislation for HMO landlords.  Their successful introduction of new schemes under the “localism” legislation has encouraged other councils to follow suit.  Milton Keynes is one of those who have instituted additional requirements for HMO planning under “article 4″ which is already making it much more difficult and expensive for private landlords to set up new HMO’s.

Now Oxford have announced that they are bringing in selective liscencing for all Houses in Multiple Occupation.  (National legislation only provides for liscensing of larger shared houses, those with 3 or more storeys and with 5 or more residents).  How long before MK council and others around the country follow suit?

Piggy says ” I’m all in favour of ensuring that accomodation standards are kept high in the Private Rented Sector.  However,  I do worry about introducing additional legislation into an already highly regulated area at a time when the government has just reduced local housing allowance payments to the under 35′s.  A large number of single people are going to be looking for rooms in shared houses as thier benefits are cut and they can no longer afford to pay for flats/studios. If  landlords are discouraged from letting property in this way, will supply keep up with demand?”

To read the entire press release from Oxford click here.

How to attract new clients with Testamonials

A good testimonial lets your satisfied customers do the talking for you and your business. The more genuine the testimonial looks the more convincing it will be so if possible, include the customer’s photograph, their real name, position within their company and location.

 SuccessTrack Founder Jonathan Jay recommends you ask customers to go into detail about how the product or service has improved or benefited their lives.

“You need testimonials that give sufficient detail. For example, someone might go on an investment training course and they might say: ‘When I first came on your investment training course I was £5,000 in debt. However, after using the advice I am now £10,000 in credit – after paying off all my credit cards – and I now have a bright future ahead of me because I now know that I’m in control of my financial destiny.’ That’s good whereas a testimonial that just says, ‘Fantastic!’ – is not so good.

“You need to build up the layers of detail. A testimonial that just says: ‘This product is absolutely brilliant’ with the person’s initials underneath, is not very powerful. The business owner should have asked for the testimonial and explained it was going to be used on their website and in their marketing material and was going to be read by other people.”

Most people don’t use testimonials effectively and therefore they don’t see the impact they can have, says Jay. “They don’t even see the necessity of collecting testimonials from clients. But if you get the right testimonials from the right people, it builds respect, prestige and your professionalism. It elevates you in the eyes of the person reading the testimonial. They say, ‘Well, if this person says she’s good – she must be good!’

Where did it all go wrong?

Property investment is not a game for amateurs looking to make a quick buck as some of the news stories have clearly illustrated over the past couple of years.  With the benefit of hindsight, we can assess where people got it right with their strategies and where others got it oh so wrong.  In this article for Just Do Property, Lisa Orme explains 5 of the biggest mistakes she has seen investors make and how to put things right.

http://www.justdoproperty.co.uk/property/wrong-right-2-5960

I found it interesting how she echoes my sentiments about the almost manic obsession some people have with “no money down” deals.  Personally we have always invested with a firm eye on cashflow and most of the deals I see being touted as NMD simply don’t work on this basis because they are too highly geared.

Nationwide report predicts stable house prices for 2012

The latest report from Nationwide, released in December 2011, indicates that UK house prices are continuing to buck the trend of recession.  Houses are now worth 1% more on average than they were at the start of 2011.  Whilst this may seem like a small amount compared to the increases seen between 1997 and 2006 it is remarkably positive news when seen against the background of financial crisis in the euro zone.

Nationwide Chief Economist Robert Gardner said: “The 1% rise in house prices recorded over the past 12 months could hardly be described as a strong performance,but against a backdrop of anaemic economic growth and a deteriorating labour market, UK house prices were surprisingly resilient in 2011.

“Resilience was less evident in other areas of housing market activity in 2011. For example, the number of mortgage approvals remained low, at just over half the long-term average.

Petition prompts energy price reduction.

I received this notification from consumer action group “38 Degrees” this morning.  I think it is an important message so I have copied in its entirety below.

“Over 85,000 of us have signed the petition telling gas and electricity companies to cut their prices – in just 4 days!

And it’s starting to work. Numbers on the petition are sky-rocketing and it’s making the news – have a look at this report covering the petition on Channel 4 news: http://www.channel4.com/news/catch-up/display/playlistref/110112/clipid/110112_EDF_11

In just 4 days, three of the biggest gas and electricity companies have folded under the pressure. EDF Energy, British Gas and Scottish and Southern have all said they’ll cut their gas or electricity prices by around 5%.

It’s not enough, but it’s a start and proves that if enough of us get involved we can win. Three big companies – E.ON, npower and Scottish Power – are still holding out, and those that have dropped prices haven’t gone far enough. The bigger the petition, the bigger the message we send that we’ve had enough of being ripped off.

Can you forward this email to your friends now to ask them to add their names and help send the petition rocketing past 100,000?
https://secure.38degrees.org.uk/stop-the-energy-rip-off

Can you also spread the word on Facebook and Twitter, if you use them? You can tell your friends about the petition easily by clicking the quick links below:

Share on Facebook: http://www.38degrees.org.uk/energy-ripoff-facebook

Share on Twitter: http://www.38degrees.org.uk/energy-ripoff-twitter

When 38 Degrees members have come together before in huge numbers, we’ve won some amazing victories. Last year, half a million of us worked together to force the government to reverse their plans to sell off England’s precious woodlands.

Let’s turn up the heat on the gas and electricity companies now by forwarding this email and asking everyone we know to add their voice: https://secure.38degrees.org.uk/stop-the-energy-rip-off“

Making your money work for you

Making Your Money Work for You
With interest rates at an all time low, financial institutions have been cutting the rates they pay to savers. Check the rates your savings are earning – you may be surprised by how quickly the attractive interest rates used to tempt new investors are reduced.  If you have a significant amount of savings then you may need to consider alternative investment options, such as property, in order to maximise your returns.

Similarly, look at the costs of financial products you buy – insurances, your mortgage etc. It is easy to just let things roll over at the annual renewal but there may well be savings to be made.  Even if you are happy with your current supplier it is worth checking out other deals, as you can use this comparison to ask for an improved quotation.

Check that your utilities are being supplied in the most cost-effective way.  In general terms you will save money by having both gas and electric with the same company and paying by monthly direct debit will also reduce charges.  There are also a number of bundled deals available which can help you make savings on energy as well as broadband and telephone bills.

(Piggy says “The most expensive way to buy your energy is via a card or key meter – typically the charges for these are up to twice as much as for a credit account.  If you have one of these meters then your supplier should be able to change it for you free of charge provided that you do not have any arrears.”)

How to protect your cashflow.

Practical Finance tips for tough times.

Business Link are a free service which offer help and advice to companies across the UK.  They have  published their guide to doing business in tough times; featuring practical ways to tackle the challenges and opportunities of the current climate.

Click here for their top tips for protecting your cashflow.

(Piggy says “Cashflow is king for small businesses of any description but remember that it has as much to do with your expenses as it has to do with your income!”)

Merry Christmas

In the interests of preserving trees and saving the planet I have taken to creating an electronic “Christmas Card” each year.  Best wishes for the season to all of you. Nikki and Jim.