Become A Master Negotiator

Summary: Acting uninterested in continuing the negotiation.

Although you sometimes may not want to go to the extreme of walking away from a deal, you may still want to give your counterpart the feeling that you are not really committed. Apparent Withdrawal should be used when you want to give the appearance that you do not care, when in reality you are simply trying to retain control of the situation.

Example

Several years ago, a friend of ours was negotiating to buy a beautiful home. He had gone through several days of negotiating on many deal points. He was in love with the house but the seller’s last concession was still $4,000 above what our friend wanted to pay. So he called the seller’s broker and said that he was going to have to withdraw from buying the house because he could not make the numbers work to his satisfaction. Our friend was confident that neither the seller nor the broker would let a $300,000 deal go over a difference of $4,000. Since our friend was willing to pay the $4,000 if he had to, this was a case of Apparent Withdrawal rather than Withdrawn Offer.

Counter

The broker had at least three possible tactics at her disposal: These Boots Are Made for Walking , I’ll Meet You in the Middle, or Trade-Off Concession. Any of these tactics could have worked to bring our friend back to the bargaining table without giving in to his lower price.

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

Summary: Citing lack of precedent as a reason for turning down a deal point.

When you cite a precedent, you use something that has happened in the past to justify a current request, position, or concession. Lawyers often cite precedents, using actual court cases to support their positions. Reversing this tactic by saying, “There is no precedent for that,” or “We’ve Never Done That Before” in reference to a deal point can be very effective.

Example

A hotel guest asks to extend his check-out until 2:00 PM. The guest services person denies the request, saying, “I am sorry for any inconvenience, but we never extend checkouts past noon.”

Counter

The guest could respond by Asking a Closed-Ended Question, such as, “How much would it cost to stay an additional two hours?” Or he could counter with a precedent by pointing out, “Every OTHER time I have stayed with this hotel chain, I have been allowed a 2:00 PM check-out when I requested it.” As a last resort, he could utilize the tactic of the Higher Authority, going over the guest services person’s head and asking to speak to the manager.

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

Summary: Using a well-respected source of information to support a position.

Objective criteria are often useful as a baseline for negotiations. Some well-known standard benchmarks include the Kelley Blue Book, the Consumer Price Index, the Consumer Confidence Index, and the interest rate set by the Federal Reserve Bank. For example, whenever someone buys or sells an automobile, each counterpart has the opportunity to reference the Kelley Blue Book for objective criteria. This source provides the retail and wholesale value of the car and specifies how much various options are worth. It even tells how much money to deduct or add for specific mileage.

Example

You are asking $17,500 for a car you are selling. A potential buyer tells you that according to the Kelley Blue Book, the value of your car is just $15,000.

Counter

When a counterpart References a Benchmark, you should first verify that his information is correct. There are lots of ways to present information, and your counterpart will probably present his statistics in a way that supports his position. For example, if he tells you the Kelley Blue Book values your car at $15,000, ask, “Are you referencing the wholesale value or the retail value?” Buyers usually reference the wholesale value.

A second tactic may be to provide new information from another source. You might point out an ad from Craigslist that offers the identical make and model car at a price similar to what you are asking. Finally, you might take a different angle and explain why your car is an exception to the objective criteria. Perhaps you are the original owner, and have kept the car in perfect condition and have all the maintenance records to prove it, and you believe these exceptions support your price.

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

Summary: Asking for concessions one at a time, to make them more palatable.

Few people eat a whole salami with one swallow. Salami just goes down easier if you cut it into small pieces. The same principle applies to negotiation. Your counterpart will be more likely to make major concessions with less resistance if you cut the concessions into several small pieces.

Example

Kate is in the market for a new desk, chair, and dresser. The total furniture set she wants retails for $850. She has set a goal of purchasing the set for $700. If she walks right up to a salesman and says she will buy the set if he sells it for $700, he will probably tell her to get lost. She stands a much higher chance of getting the set at her price if she uses the Salami tactic.

First, Kate asks the salesman what kind of discount he will give if she purchases all three components at once. He might agree to a 10 percent discount. Next, she asks if he will take another $50 off if she takes the floor model. Finally, she mentions that she will buy the furniture set immediately if the salesperson will throw in the extended warranty on the desk. Before you know it, all those little concessions add up to $150.

Counter

If the salesperson realizes he is getting the Salami, he has several options. He can expose Kate’s technique, pointing out that he has made concession after concession, and the negotiation is no longer win-win. Second, he can blowup, using the YIKES! You’ve Got to Be Kidding tactic. When Kate asks for one more concession, he can express utter disbelief, acting as though she has finally introduced the straw that has broken the camel’s back. His other option is to counter, using the Trade-Off Concession by telling Kate, “I will give you the extended warranty on the desk if you will buy the extended warranty on the chair and dresser.”

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

Summary: Working alongside your counterpart to create a win-win outcome.

Although it is always good to have a plan complete with solutions laid out in your mind, getting your counterpart involved in generating win-win solutions can also be helpful. Your counterpart may well suggest an idea you had not considered.

Example

A client informs a consulting firm that she is having major customer service complaints and feels her staff needs training. While the consultant has a good idea about the type of employee and management training the company needs, instead of making suggestions, the consultant asks, “What type of training do you feel would work best for your managers and employees?” Clients usually have a very good idea of the prescription needed to cure their problems.

Counter

A counter will probably not be necessary with this tactic. But the client could employ Deflecting an Answer With a Great Question to change the course of the conversation, if desired. She might also try Sharing Both Pros and Cons of various possible solutions.

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