Become A Master Negotiator

Summary: Using the word let’s to imply that you are both on the same team and that you are working for the mutual benefit of your counterpart.

Example
Let’s is a powerful word when it comes to soliciting cooperation from others. Instead of saying, “You need to sharpen your pencil to see if you can come up with a better price,” you could say, “Let’s reexamine your numbers and options and see if we can come up with a better price.”

You are able to get the same point across in a much more cooperative way. The word let’s is powerful and it works better than saying you.

Counter

Let’s is a difficult word to counter without coming across uncooperative. A strategy that could work well in this situation is, If You Were in My Shoes. For example, if you had already given your counterpart a rock bottom price and going any lower would make your sale unprofitable, you might say, “I am struggling with where to go next. If you were in my shoes, how could you justify lowering the price to a point where you create an unprofitable sale?”

You may also counter effectively with the strategy of Asking an Open Ended Question. You might ask, “What specific ideas did you have in mind for me to get you a lower price and still remain profitable?”

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

Summary: Conceding a deal point in the future to get what you want in the current negotiation.

Example
Recently, we had a family discussion about where to go out for dinner. I wanted to go to a local restaurant that specialized in barbecued ribs. My wife and daughter wanted to go to a salad bar, and my son wanted to go to a hamburger joint. It looked like the girls were going to win and we were off to the salad bar when my son said, “Wait a second. If we can go out for hamburgers, then I will let you pick where we go out to eat for the next two times.” He was willing to give up a future round draft choice for winning a deal point at the present moment.

Counter
My daughter did not miss a beat. She used the counter of Never Saying Yes to the First Offer and said, “I hate hamburgers. For me to agree to go there, then you need to go where we want to go for the next three times.”

A second counter could be to Sweeten the Deal. My wife could have said to my son, “If you will go to the salad bar, you can choose the movie we watch tonight.”

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

Summary: Changing gears and going with a different tactic when the previous negotiation strategy has not been working.

When one tactic is not working, the worst thing you can do is turn up the volume on the same tactic.

Example
A real estate agent is trying to sell a house. The potential buyers are a very analytical couple who want to have a lot of information before entering a negotiation. They say they want to look at more research on the neighborhood and take time to think before making an offer. If the real estate agent is a typical shark, he might respond by saying something like, “Well, don’t blame me if someone else comes in tonight with an offer and buys your house.” This tactic might well prompt the prospective buyers to respond with These Boots Are Made for Walking, and find another real estate agent to work with.

The real estate agent would improve his chances of negotiating a win-win outcome by Switching Tactics. He might try Referencing a Benchmark to let the potential buyers know how quickly property is currently selling in this neighborhood; or Investing Time, offering to show the potential buyers the schools, parks and shopping areas in the neighborhood. If he helps the buyers conduct their research, his chances of selling the property improve significantly.

It’s important to be resourceful throughout all your negotiations. When one tactic isn’t working, quickly switch to another.

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

Summary: Developing high goals for a negotiation will inevitably make you work harder to reach those goals.

Your level of aspiration will probably be the single most important determinant of what you get out of a negotiation. Before entering any negotiation, you need to identify your aspiration, your wish and your bottom line. Aim high!

Example
You go online to bid for a hotel room at a reputable hotel in New Orleans. You know that if you call the hotel and ask for its best price, you will be told it is $185. You will be comfortable (your aspiration) paying $145 per night. But you decide to raise your level of aspiration (your wish), and so you offer $95. The hotel e-mails to inform you that your offer has been accepted, and your reservation is guaranteed. Aiming high pays off!

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

Summary: Your outlook on the negotiation will affect the outcome.

This is an important tactic to learn because when you have A Positive Vision of the outcome of a negotiation, you will most likely guide its course. If your counterpart does not have a vision, as well as a plan to achieve that vision, he or she will probably be limited to reacting to your vision.

Example
A contractor is in a dispute with a corporation over the building of its new office, and a meeting is set to discuss cost overruns. The contractor prepares for two weeks and goes into the meeting with a well-orchestrated presentation that is aimed at ending the dispute with a win-win outcome for both counterparts. He visualizes the corporation accepting his proposal. At the meeting, he does a great job of demonstrating how the dispute can be resolved equitably.

Representatives of the corporation enter the negotiation with their primary focus on minimizing their losses in cost overruns. Without their own clear vision of a win-win outcome, they find themselves influenced by the contractor’s optimism and commitment to a solution that is favorable for everyone. They accept the contractor’s proposal, and both sides come out feeling like winners.

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