The Common Sense Guide Negotiating A Fair Retail Deal
When forging a public/private partnership for retail development, fairness must play a role. It would be very difficult to sustain a partnership where one party feels like they got the short end of the stick during the negotiations process. Defining, and agreeing on, what is “fair” for all parties involved can get rather tricky, though.
Do Your Homework
By the time you reach the final negotiating stage, you should already have a good understanding of what you and your potential partner each hope to get out of this retail deal. Spend time talking with them and building trust. Be clear about what you need this deal to accomplish and get clarification about what they expect as well. The better you understand the deal being negotiated, the more likely everyone will be satisfied with the terms in the final transaction documents.
Stay Involved
It’s imperative that the principle parties stay involved during negotiations. You’re the ones driving the shared vision. You’re the ones who will reap the benefits, and consequences, of this deal for the next few years. Ignoring or abdicating responsibility for negotiating a fair agreement can make the deal fall through. Retail deals are much more successful if you’re putting effort into laying a solid foundation for long-term cooperation.
Think Long Term
Don’t loose sight of the big picture by getting bogged down in tiny details. Remember compromise is often a necessity for both sides. Be ready to negotiate sticky aspects of the deal and work through disagreements before the terms are finalized. Ideally, you’re forging a long-term partnership that will benefit both parties. Exercising patience during the final negotiations and documentation process will pay off long-term.
Consult Experts
There’s far too much involved in negotiating a retail deal for the public/private partners to do it alone. Don’t hesitate to bring in experts to consult on the details. Both sides need legal and technical counsel to help negotiate terms and make sure you don’t miss any legal requirements or site-specific details that have bearing on your transaction.
When thinking of experts who can help in the negotiation process, don’t underestimate the value of bringing a retail specialist on board. If you hire Retail Attractions, you get the advantages of insight from an economic development professional without the cost of a salaried employee. We’ll work with the community and/or development firm to smooth the negotiation process and help you reach a fair and mutually advantageous agreement. Contact Rickey Hayes for more info, or click here to check out the services we offer.