Become A Master Negotiator

Summary: Appealing to a counterpart’s ego.

One effective way to gain leverage in a negotiation is to use Flattery or Sweet Talk. When used effectively, flattery has the impact of motivating the counterpart to respond.

Example

The president of a nonprofit corporation asks a speaker to give the opening address at the organization’s fundraising dinner. The president begins his request with the statement, “Although I don’t have the budget to pay you, I need a great speaker and you are the best I know.” This type of flattery, combined with the opportunity to do something for a worthy cause, makes the request hard for the speaker to turn down.

Counter

If the flattery seems sincere, the speaker should express her appreciation. But, it’s important for her to be able to set the flattery aside when making a decision. If she wants to counter the offer, she can emphasize the importance or value of her speaking skills. A second option would be to ask for some compensation other than money such as a free advertisement in the program for the fundraiser.

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

Summary: Moving a counterpart toward an unpleasant outcome, then threatening to push.

When both sides in a negotiation have a great deal to lose if the negotiation fails and a great deal to win if it succeeds, the You’ll Be Sorry tactic can be useful. One counterpart pushes the other right up to the edge of some terrible outcome, then threatens one final shove.

Example

Lee Iacocca, former chairman of Chrysler Corporation, used this tactic of pushing his counterparts to the brink when he was negotiating with the automobile unions in the late 1970s. Iacocca’s goal was to have the unions accept a final wage package of $17 per hour. The union would not settle for any less than $20 per hour. One bitter night, Iacocca addressed the union negotiating committee. “It was one of the shortest speeches I have ever given,” he later recalled. He told the committee, “You’ve got until morning to make a decision. If you don’t help me out . . . I’ll declare bankruptcy in the morning and you’ll be out of work. You’ve got eight hours to make up your minds. It’s up to you.” In this example, Iacocca practiced You’ll Be Sorry, forcing the unions to the edge of the cliff and then threatening to push. Although the unions did concede, this historic Chrysler story turned out to be a win-win for everyone: the workers, the government, the company, and Lee Iacocca.

Counter

If a counterpart uses You’ll Be Sorry against you and you believe that your counterpart has the power to back up the threat, you have two choices: You can utilize These Boots Are Made for Walking and accept the consequences, or you can decide what is most important to you and use the Trade-Off Concession to negotiate other deal points.

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

Summary: Trying to influence a deal point by offering the ideal way to fulfill all of a counterpart’s needs.

When your counterpart lays a proposal, solution, or deal point on the table, it’s a good idea to test how strongly that counterpart feels about his or her position. One great way to do this is to offer your counterpart The Perfect Solution.

Example

A general contractor provides a proposal to build a patio and barbecue for a homeowner for $15,000. When the contractor states the price, the homeowner responds that he doesn’t want to spend any more than $12,000. The contractor replies, “If I could design and build for you The Perfect Solution to all your patio and barbecue needs, would you be able to come up with the additional $3,000?”

Counter

The homeowner could counter with the tactic of the Higher Authority, blaming the budget on his wife, equity line of credit, or someone or something else with decision-making power. Second, he could utilize the tactic of Asking an Open-Ended Question and ask the contractor, “If I can’t find an additional $3,000, what would you recommend I do?” Third, he might try the Reward in Heaven tactic, suggesting, “If you could build the patio and barbecue for close to $12,000, I will be a great reference for you in years to come.” Fourth, he could ask the contractor for a breakdown of the costs to see if there are any parts of the project he could do himself.

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

Summary: Using negative information about a competitor to affect a counterpart’s decision.

Sometimes you can change the power and direction of a negotiation simply by Providing Negative Information.

Example

A saleswoman is making a product presentation to a customer, who eventually says he’s thinking about buying the product from ABC Company, one of the saleswoman’s competitors. The saleswoman has read a great deal of negative information and reviews about ABC’s service, financial stability, and product quality. So she tells the customer, “Before you make a final decision, I recommend that you read these reviews on ABC Company.”

Counter

The customer has to do his homework and verify everything the salesperson says. The salesperson will undoubtedly weigh the negative information about the competitor’s product to be favorable to her own company. The customer should ask the saleswoman to explain why her product is superior to the competitor’s, and substantiate her claims. If the customer is really interested in ABS Company’s product, he should provide them with the opportunity to answer the negative claims made by both the saleswoman and online sources.

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