Become A Master Negotiator

Summary: Arranging for a counterpart to visit one’s site or the site of another customer.

Any time you can get your counterpart to leave her office and visit your site or the operation/installation of one of your customers, you obtain leverage. One reason this approach works so beautifully is that it also employs the tactic of Investing Time by getting your counterpart to spend time and energy on the negotiation, which raises her level of commitment. A second reason this tactic is effective is that it gives you the opportunity to show your counterpart how well the item you’re selling works in real life. This enables your counterpart to envision herself using your product or service.

Example

A contractor invites a potential customer out to an office he recently renovated. The customer is happy with what she sees and can picture the changes she wants done in her building.

Counter

To protect herself, the buyer needs to make sure she has the ability to walk away from the other office without feeling obligated to make a decision on the spot. This ability to walk away will help maintain balance in the negotiation. To make sure she has all the facts, the buyer could plan her own Field Trip (possibly to another office renovated by a competitor). The more knowledge she gains about the competition and the contractor’s work, the better off she will be. She might even seek out customers who are dissatisfied with their work. Any information she acquires will help her gain leverage if she decides to continue negotiating with the first contractor.

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

Summary: Outnumbering the opposition.

Showing up to a negotiation unexpectedly and in large numbers can have tremendous impact.

Example

A developer goes before the city council to try to get approval for a project. Much to the developer’s surprise, over 200 citizens show up to oppose the project.

Counter

Advance preparation would have made a counter unnecessary in this situation. If the developer had been well prepared, he would have had some idea of the magnitude of his opposition.

Once The Ambush has taken place, the developer might request a postponement in the negotiation for time to regroup and decide on a new strategy. If the developer doesn’t want to postpone, or fails to obtain a postponement, his next option is to try to sell the decision makers on the benefits of his project. He could talk about the number of people his development would employ and the number of tax dollars the project would generate for the city, as well as express his willingness to work with a citizens’ advisory group made up of some of the people who oppose the project.

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

Summary: Using the power of the relationship with the counterpart to get concessions.

Once in a while you may want to remind your counterpart of your long-term relationship or provide some specific details about your circumstances that your counterpart may not be aware of.

Example

A bank sends a corporate customer a monthly loan statement. The statement contains a $50 charge for a loan payment that was received five days late. The accountant for the corporate customer calls the loan officer at the bank and states, “I have a problem and I need your help. For whatever reason, you received our loan payment five days late. Considering our ten-year relationship, I’m hoping you can make a one-time exception and waive the late charge.”

Counter

If the bank’s goal is to build a long-term relationship with the customer, our recommendation would be to grant the one-time waiver. Adding a Safeguard might be wise. The bank could send the customer a letter granting the one-time waiver, but specifying that if the problem recurs, a $50 late charge will be imposed.

If the bank’s only goal is collecting the $50 late payment, two counters would be effective. First, the loan officer could tell the customer that the late fees are Standard Practice or Policy for the bank and, as such, are nonnegotiable. Second, the loan officer could use Good Guy/Bad Guy, offering to ask her manager for permission to waive the fee, and then coming back and saying that her manager refused.

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

Summary: Imposing a time limit for making a decision.

At any time during a negotiation, either party may Set a Time Limit on agreeing to a particular deal point. But remember, you don’t have to accept any limits your counterpart sets. In fact, it’s a good idea to question all of your counterpart’s limits. On the other hand, it’s also a good idea to go into a negotiation with your own limits in mind.

Example

You make an offer on a house. The seller counters with a price that’s two thousand dollars higher, and gives you just twenty-four hours to make a decision.

Counter

First, you could counter with the tactic of Asking an Open-Ended Question, and inquire why the seller is imposing this time limit. Second, using the tactic of That’s Not Good Enough, you could tell the seller that the time limit is unacceptable–just make sure you’re prepared to walk away. A third option would be Moving the Deadline: tell the seller you can’t respond within twenty-four hours, but will reply in forty-eight hours. This tactic would give you more time to make a better decision. Fourth, you could simply ignore the time limit.

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