Negotiating Your Way to More Profit

Introduction

Today we are going to be having a conversation with an expert in negotiations today.Our hopes are to share some tips and tricks that may help you work on cash rent leases this year and have success in other conversations.  Thank you again for suggesting topics for us to talk about on the podcast and keep them coming.  Send those to [email protected] or find us all over social media.As a reminder if you find value in our message today please share that with a friend or associate and leave us a review.  We greatly appreciate that as we try to grow our audience.

What’s Working in AG

Foundry Distilling Company1 – The Foundry was started by Scott Bush who is a graduate of MIT and also started the famous Templeton Rye Whiskey2 – The Foundry was created with flexibility in mind.  They have the ability to make just about any spirit in large or small amounts including hand sanitizer.3 – They enjoy telling the stories behind the liquor.  Since they have the ability to make any kind of liquor they have the ability to make Private Barrels. Heritage Bourbon or VodkaCreate a customized mash – your cropsCelebrate your farmMake your own labelsTaste throughout the processReasonably priced customized product4 – 5% off when you mention Farm4Profit Podcast

Main Topic

Tips for negotiating with land lords, suppliers, buyers, and everyone else.Negotiation expert Matthias (Ma-Tie-Us) Schrannerwas originally trained by the police and the FBI as a lead negotiator for high-stakes situations. For the past 15 years, he and his team at the Schranner Negotiation Institute have been advising clients including the UN, global corporations and political parties in difficult negotiations.He teaches the executive seminar series Negotiations on the Edge and is the author of books such as The Negotiator, Negotiations on the Edge and Costly Mistakes, and The Schranner Concept® as well as numerous articles and other publications.Matthias Schranner advises business and government leaders in over 40 countries, including the US, China, Russia and Japan. His proprietary Schranner Concept® is used by numerous Fortune 500 companies worldwide to succeed in difficult negotiations.He’s talking to us today from Zurich in Switzerland        https://www.schranner.com/home

General Questions

Can anyone become good at negotiating?What does it take to be good at it?How can I become good at asking questions?What is the best way to start a negotiation?Fish on the tableWhat are smart tradeoffs?How does body language play into the negotiation? Farmers rely heavily on trade agreements negotiated between governments.  Let’s not talk party sides but focus in on President Trump’s negotiation style.  Is it a style? Can his style be effective?What is the 51/49 rule, why is it important?Is this the same as never split the difference?Are win-win deals really losers?Are there any sure-fire tips you can provide the listeners to improve their skills?5 key tips everyone needs to knowDo you have any exciting stories what would grab the listener’s ear?Is there anything else our listener needs to know about negotiating?

 

Situational Questions

Negotiations with someone who we believe has the upper hand. Negotiating with landlord who owns the farm ground.  The idea is that owner could rent it out to any other farmer in the neighborhood if we don’t pay their price (which is probably too high).  Control over a land base is key in agriculture and the reason many over pay cash rent on land.Negotiations with Ag retailers who provide chemicals, fertilizer, seed, and more.Negotiations with a salesperson who usually doesn’t have the final say.  Most of the time is a large company with what appears to be set prices.  Farmers just succumb to what is offered thinking it’s their only option.Negotiations with AG product purchasers.  How do we get more money for the products we produce?Most farmers don’t sell directly to the consumer, so they market their product to processors.  These can be grain elevators or meat packing facilities that have a combination of price x weight component with a basis factor for delivery and end product.  How can we negotiate the sale to ensure we aren’t leaving any money on the table in the end?Negotiations with friends who also sell a product or provide a service.Agriculture is a tight knit group.  More than likely the people you buy from in your network are also your friends.  We don’t want to hurt their feelings, but also know the key to our future is to be a profitable farmer.Negotiations with family for time and labor.The common question around the AG world is how to balance farm and family.  Our observations are some farmers feel guilty for spending more time on their work than their family.  We believe there should be a balance, but balance doesn’t always mean equal.  Most of the time the feeling of guilt comes from misrepresented expectations or abilities.How do we more effectively win discussions/conversations/negotiations about where our time is spent with family?

Summary

Challenge

Closing 

Reminder to like, rate, and review.  Please don’t hesitate to share the “Mullet of Podcasts” with your friends.  We look forward to sharing more time with you next week on our Farm4Fun Episode.