Become A Master Negotiator

This tactic is one of several tactics we recommend you never use. Honest, credible negotiators don’t need to use this tactic. However, there will be times when this tactic will be used against you, so you need to be prepared with the counter.

Summary: Using unpleasant or insulting behavior to intimidate a counterpart.

One of the most challenging counterparts to deal with is a shark. Shark-like behaviors include yelling, screaming, swearing, or fist pounding. The tactics sharks and bullies utilize are usually successful because most people would rather give in and retreat—with their shirts still on their backs—than fight.

Example
A team of union employees is negotiating a contract with management. One of the union representatives starts yelling at the management team whenever he does not appear to be winning a deal point. His behavior intimidates some of the managers, who are tempted to ask their representative to give in rather than having the union member continue making a scene.

Counter

The most effective way to deal with a shark is to get closer to him, not to retreat. If you show that you are not intimidated, his bullying behavior becomes useless.

In the scenario above, management’s representative has four possible counters:

1. He could get up, walk out, and never come back.
2. He could say something like “Most people who negotiate with us do not feel a need to yell, swear, or pound their fists. I wonder why you feel a need to act this way.”
3. If he knows his counterpart to be a bully, before the discussion even starts, he could say, “I have been hoping all week that you will yell and scream like you usually do. Do you promise you will do it today?”
4. Finally, if he is really confident and wants to have a little fun, he could say, “You know, you frustrate a lot of people when you yell and swear, but it kind of excites me. I love people of passion! Will you do it again?”

Using these counters takes confidence, but if you use them well, a bully may yell and swear at others but, most likely, will not yell and swear at you.

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

Summary: Providing the final terms of the negotiation only to change them last minute.

A counterpart might use the Scrambled Eggs tactic to confuse you and your decision-making process. Sometimes facts and figures are used; other times, false information is provided.

Example
A salesman is adding up the cost of some furniture. The buyer says she does not want to spend more than $3,000 for the four pieces she is interested in purchasing. The salesman adds up the prices and says the total comes to only $2,800. But when the paperwork is completed, the salesman claims that he has made a $200 error. Once tax and delivery fees are added in, the total is over $3,000.

In a second example, a person selling a car uses facts and figures, such as Kelley Blue Book prices, to establish the value of his vehicle. He shares the bottom-line figures with a potential buyer, neglecting to point out that the price he is quoting is for a car with lower mileage. His hope is that the buyer won’t ask for proof or a breakdown of figures.

Counter

In the first example, the buyer could expose the furniture salesman’s tactic, saying that she believes the salesman is deliberately trying to deceive her.

In the second example, the car buyer should ask to see the Kelley Blue Book to verify the numbers, and then point out the discrepancy.

In either example, These Boots Are Made for Walking would also be effective.

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

Summary: Asking your counterpart for leniency before making their first offer.

There are times when you want the best available product or service but do not want to pay the price that the top products or services command.

Example
In searching for a certified public accountant, we were given the names of three individuals who were qualified and experienced with our type of business. We interviewed the first two accountants and requested they create a proposal. We scheduled the third accountant for the last interview because two different people who referred this accountant to us said she was one of the best, but, "Very, very expensive.” When we met with the third accountant, we shared the background of how she was referred to us and her associated reputation on price. We ended the meeting by saying, “We would love to work with you but we are not sure if we can afford your fees. Since we are a small business, when you work up the proposal, will you go easy on us?”

Counter

In this situation an effective counter could be the Feel, Felt, and Found. The accountant might have responded, “I can understand that since you have not experienced the high level of service I provide, you might feel my fees are high. Many of my existing clients felt the same way you do until they discovered that the amount I am able to save them is substantial compared to the fees I charge for my services.”

A second tactic that may work well in this situation is to Lose the Battle to Win the War. The accountant may have stated something like, “I will give you a new client discount so that you will quickly see that the value gained by my professional services will make the fees seem inconsequential.”

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

Summary: Letting your counterpart vocalize his desired outcome first.

Often in a negotiation, your counterpart will try to “test the waters” by attempting to have you vocalize your outcome first, giving them the advantage of adjusting their offer and perhaps giving less than they were prepared to.

Example
I was in the market for a new dishwasher. After researching different models and prices, I was ready to buy. During one shopping trip, I approached a salesman and said, “I have been shopping around and I can get a better price on this dishwasher at XYZ. I would like to purchase it here but need to know what the best price is you can give me.” He asked me, “What price did XYZ quote you?” He wanted me to Go First and divulge my bottom line. I stood firm and repeated my question, “What is the absolute best price you can give me?” After a long silence, he finally gave me a price that was well below anyone else’s price. By forcing him to Go First, I’m confident that I got a lower price. Had I gone first, he would have simply matched the price and not beaten it.

Counter

In this case, an effective counter would have been to use the tactic of Calling Your Bluff and ask for documentation. He could have said that he would consider a lower price if I could show him an advertisement or written bid with the lower price on it. Or, he could have utilized the tactic of We’ve Never Done That Before and simply state that it is not their policy to match other competitor’s prices. If he had given me the best price possible to start with, he could simply stand by that price.

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