If you are a Martial Arts Instructor, please feel
contact us about contributing to our Instructor's Corner!
STEPHEN OLIVER'S EXTRAORDINARY MARKETING
"All the Things I Wish I Knew When I Was 22":
assume that anything that you need to buy - that you are paying
a monthly payment on - or that you owe is negotiable.
some things are more difficult to negotiate than others - but
ultimately just about anything can be negotiated.
you sign a five year or ten year lease when you opened - perhaps
with stars in your eyes it looked like the greatest thing ever
- suddenly a couple of years later the payment begins to
look like the "national debt."
start by taking a look at your situation from the other side
of the table.
your owner have a full center and a waiting list to get in at
20% more than you are paying? In that case it might be
real easy to sublet - or, just be excused from your lease so
that the owner can shift to a "more substantial" client with
an even higher lease payment.
you were in that owner's place - wouldn't you be in a huge hurry
to release a tenant at a lower rate - to be able to release to
a higher paying tenant and possibly even to a national credit
the situation with the owner - or with a realtor. Look
for alternative space that is either smaller - or that leases
at a lower amount per foot - or both. Sometimes it's also
possible to move within the same center to a smaller space or
to a less desirable space either way lowering your monthly outlay.
you really about the only substantial tenant in a shopping center
that looks like it's about to be condemned. That's
a perfect opportunity to renegotiate your lease. Why? Well
what happens if you go out of business - or, just walk on the
lease? First the owner has to go looking for another tenant. If
he already has vacancies - he's been doing that without
a lot of luck already hasn't he? Once he finds a new tenant
then he has to pay realtor a commission, possibly pay for tenant
finish, maybe provide some free rent, and definitely wait another
two to six months to start collecting rents until the new tenant
may have to be pretty tough in the negotiations in this case. Your
owner may already be operating on a negative cash basis. You
really have to make sure he believes that you are either:
the brink of insolvency. That without a break you won't stay
in business much longer.
you are ready to "walk away" from the lease and that you are
really unconcerned about his possible legal remedies.
of these examples were obviously at the extreme but they give
you the idea. If you want to pay your landlord $500 less
per month for three years that adds up to $18,000. What's
it going to cost him to release the space. Figure out the
downtime, realtor fees, tenant finish, and free rent the owner
will have to incur. Also figure out what you real market
rental should be - if you are paying over the market that's a
negotiating point in your favor - but, is one reason the owner
may fight to keep you in your lease rather than putting the space
on the market.
an aside: You are much better off in dealing with your
lease if you are NOT Personally Signed on the lease and don't
have a lot of assets in the corporation that runs your school
- more on this later.
say you spent $10,000 with your local television station, radio
station, or newspaper. The ads ran - and not too unusually
the phones didn't ring. Rather than the flood of calls
you expected you get 4 calls and 2 enrollments. Then the
bill shows up. What do you do?
you can do several things:
pay the bill - take your lumps and walk away;
down with the ad rep, his supervisor, and anyone else you can
get in front of - explain you dilemma. Explain that
$25 per call would be great. $50 per call okay - that maybe
you could even live with $100 per call.
to either pay your maximum - $50 per call on what you've already
that you'd be happy if they kept running the commercials - they
can even tweak the ad and the run times until you are up to 100
to 200 calls (walk them through what you will do to keep excellent
track of the results.)
they refuse the options above either:
them the check for $100 per call - with an endorsement that spells
out that with depositing the check the invoice amount is paid
the bill in your drawer. Six or eight months later when
their collections people call - explain the situation and offer
to settle for the amount previously offered.
sales rep for your local newspaper shows up and practically guarantees
that the ads in his/her newspaper will be the greatest thing
ever for your business.
to the sales rep that if what he explains turns out to be true
then you'll both be overjoyed - but ask what guarantee do you
that you are willing to pay $50 per call - no more.
may be able to negotiate one of several things:
To pay per inquiry rather than just buying space, or
Second, An agreement for "make goods" free
of charge if the initial run does not Get the needed response.
At the very least - you have established
your negotiating position properly when the bill comes due.
copyright 2001 Stephen Oliver
To subscribe to Stephen
Extraordinary Marketing Newsletter go to http://www.ExtraordinaryMarketing.com
Email Stephen at
Quick Read: "Getting to Yes" Fisher & Ury
Putting up a Web Site
a Great Advertisement?
the Things I Wish I Knew When I Was 22" Part 1
the Things I Wish I Knew When I Was 22": Part 3
Wealth vs. Lifestyle
Much Can You Spend to Generate Enrollment?
and other Diversions