Become A Master Negotiator

Summary: Appealing to a counterpart’s sense of power to get him to make a decision.

Asking a question like, “Do you have the power to make this deal happen?” can be an effective tactic. Some people feel compelled to say “yes” for the sole reason that it strokes their ego. People with big egos believe they are always right, and like to feel in charge.

Example

A man goes out to buy a car for his family. He is a bottom-line, results-oriented type of guy who is good at negotiating a great deal. Once he makes the decision to buy a car, he wants to do the research, take a test drive, negotiate a deal, and purchase the car all in one afternoon. The salesperson, sensing the buyer’s need for power, asks, “Do you have the power to make this type of decision without your wife?” The husband replies, “I am the sole decision maker when it comes to purchasing the family car.”

Counter

Obviously, the tactic of Higher Authority would work best here—and it is probably in this man’s best interest to employ it. He could say, “Although my wife and I usually agree on this type of purchase, I will have to review the purchase agreement with her to gain her approval.”

It is usually wise to get someone else to review any deal you are structuring. Asking someone else to review your proposed outcome is not a sign of weakness, but a sign of strength.

Have you used or encountered this tactic in your negotiations? If so, how’d it go?

Summary: Delaying a negotiation or decision to encourage the impatient counterpart to make a better offer.

Salespeople are typically short on patience when they smell a deal in the air. In fact, sales trainers sometimes teach that if you do not strike while the iron is hot, you might lose the deal. But impatience may encourage a negotiator to make unnecessary concessions. Knowing this, a savvy counterpart might stall for time, trying to make the impatient negotiator nervous and more willing to make trade-offs.

Example

A saleswoman prepares a proposal for a customer and, over the next few days, calls two or three times to ask what the customer thinks of the proposal. The customer never calls back because he is stalling, hoping the saleswoman will be willing to make some concessions if she feels he isn’t particularly interested in making a deal. Worried that the customer might be doing business with a competitor, the saleswoman gets nervous. Although she is not sure if the customer has even had time to review any of her proposals, the saleswoman leaves a message that her “numbers are ballpark, based on the information given, and there is room to negotiate.”

Counter

You should never discount a price before your counterpart tells you there is a need to do so. The best counter in this situation would probably be for the saleswoman to wait patiently for a reply. Or she could send an email to the customer, stating, “I have tried to get in contact with you several times over the last week, and for whatever reason, we have been unable to connect.” Under no circumstances should she leave any more phone messages.

When a counterpart is obviously stalling, be patient. Don’t keep using the same tactic to make contact. Think like a dolphin and do something different.

Have you used or encountered this tactic in your negotiations? If so, how’d it go?

Summary: Stalling a negotiation by creating the perception one is too busy to respond to a counterpart’s request.

To be an effective negotiator, you need access to the person who has the knowledge and ability to negotiate. Many years ago, secretaries played the role of Shark in the Moat, letting only a few, select people have contact with their bosses. Today we are more technologically advanced – we have Electronic Sharks in the Moat such as caller ID, voicemail, and email. It’s difficult to negotiate when you can’t get past someone’s electronic shark. Some negotiators use this tactic to their advantage.

Example

A commercial real estate professional is trying to secure an appointment with a corporate executive. No matter how many times the real estate professional calls, he constantly reaches the executive’s email or voicemail, and the executive herself, or the secretary, calls back at odd hours and leaves a voicemail or an email in response. Although the responses give the real estate professional hope of an actual meeting, the Electronic Shark in the Moat is very effective at keeping a distance between the two counterparts.

Counter

The real estate professional could try calling very early in the morning or very late in the afternoon when there is less chance that the Electronic Shark in the Moat is on duty. A second tactic is to utilize Find Us an Umpire (either within or outside the executive’s company) to help bring the two people together.

Have you used or encountered this tactic in your negotiations? If so, how’d it go?

Summary: Refusing to take no for an answer.

If you have children, especially teenagers, you know that sometimes you may give in to their demands just to be able to get on with your life. The same tactic works quite well in the business world.

Example

I have a son who was the master at asking for something over and over again, from many different creative angles, until he accomplishes his goal. At one time, his major life goal was to own a video game console. He asked for one almost every day for a period of two years. His creative questions included, “Could I buy it with my own money?” And “Could I buy a handheld until I can get the console?” He also asked why other parents I respect bought their kids video games. The questions went on and on. I even told him, “Video games are a dead horse in our house, and if the horse is dead, you should get off it!” Refusing to give up, my son creatively asked the following great question: “Dad, is it important to you and Mom that I can make quick decisions in complex situations?” When I said, “Yes,” he came back with, “Great! I think video games help kids make quick decisions in complex situations.” After two years, he finally got his game console. As I relfect upon this, I understand why persistence is such a successful tactic.

Counter

In this particular example, my best defense would probably have been a solid track record of not caving in to persistence. A second effective tactic would have been No More Mr. Nice Guy—I could have removed a deal point that my son felt had already been conceded. For example, I could have said, “If you bring up video games one more time this week, I will take away your computer for the rest of the week.” Since spending time on the internet was as high on my son’s explicit need list as video games, this tactic might have worked well.

Have you used or encountered this tactic in your negotiations? If so, how’d it go?