Negotiation and Deal Making Interview

For my blog I interviewed local business owner and custom home renovator James Franklin.  Franklin owns Coastal Custom Finishing LLC based out of Dr. Phillips.  The main source of income for Coastal Custom Finishes is the art of plastering and wall restoration in which James is one of the most sought after and reputable businessmen in the area.  Negotiation is a daily part of James’ job as he is constantly negotiating pricing, timelines and other various costs.  Due to the nature of James’ business there is no way to really provide set pricing as it changes from job to job.  Thus most pricing discussions result in a negotiation as the customer tries to lower the costs. 

The first item James and I discussed was separating the person from the problem.  James explained that sometime jobs change and you have to alter the price or expectations.  During these jobs you sometimes cross paths with your employer and tensions rise.  It is when this happens that you have to renegotiate these deals and emotions are high that problems can appear.  James highlighted that keeping a cool temper and letting the other person talk first worked well for him.  It allowed time for him to identify what the person really wanted and give him the opportunity to let tensions lower.

James and I also discussed how he uses objective criteria in his pricing and negotiation. Since each project changes from job to job, James does the best he can to provide a common price point to establish costs.  One way James reutilizes objective criteria is by giving the customer the average cost per foot in the current market.  James says it allows him to set a base price and then explain how his work is higher quality and thus will be more expensive.

The last item James and I discussed was when customers play dirty tricks.  James commented that being in the blue-collar business presents a separate set of problems in the area of dirty tricks.  A healthy BATNA is also key to have in most job situations to help prevent any dirty tricks.  A great example James had recently was when a customer threatened to have James kicked off a job site because he was not moving “fast enough.” To prevent this dirty trick James pulled out his BATNA and stated that if they took him off the job they would miss out on the best quality and would set back the next painter.

I am very thankful for James sitting down with me and giving me the chance to pick his brain.   James had some great examples of being a great, principled negotiator.  The real world examples were great for helping show me how I want to be able to negotiate whenever I enter the workforce.