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Tactic # 83 - Providing Negative Information
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 is thinking about buying the product
from ABC Company, one of the saleswoman’s competitors. The saleswoman
knows that the recent issue of Consumer Reports contains an article that
has a great deal of negative information 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 the January issue of
Consumer Reports. It has an article about ABC Company.”
Counter
The customer has to do his homework and verify everything the
salesperson says. The salesperson will undoubtedly weight 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 the competitor’s product, he should
provide the competitor with the opportunity to answer the negative
claims made by both the saleswoman and Consumer Reports.
Ask the
Negotiator
Dear
Master Negotiator,
We lease approximately 2,500 square feel of commercial office space. The
landlord for my business has approached me about extending my lease for
an additional three years. I still have one year left on my lease. The
landlord wants us to do this because we are a significant tenant in the
building and he wants to sell the building to a new investor/owner who
wants solid long-term leases. If I enter into the negotiations, I am
fearful the owner will try to raise my rent. What do you suggest?
Best Regards,
Kevin
Dear Kevin,
The only reason to enter into this negotiation now is to structure a
deal that grows the pie for both the landlord and for your business.
That means
you need to negotiate a lower rent, starting today, than you could get
if you waited for one year until your lease expires. There are a couple
of strategies that may prove helpful. First, you could use the
Strategy of Facts and Statistics to demonstrate that a longer lease
warrants a lower rate based on a competitive market analysis of office
buildings in your area. Second, you could use the Power of
Competition. Tell the owner you are thinking about moving at the end
of your lease to another building, and ask, is there anything you could
do to make it harder for me to leave? Third, you could do nothing, using
the Strategy of Delay, and deal with this negotiation in one
year. Good luck in creating a win-win that meets the long-term needs of
your business.
Peter
Ask the
Negotiator - Are you involved in a
negotiation and not sure what strategies or tactics to use?
Send in your toughest negotiation
challenge and our team of expert negotiators will outline a specific
plan to ensure your success. Please send your negotiation
challenge (please put Negotiation Challenge in the subject
line) to patti@pbsconsulting.com.
If your challenge gets published, we'll send you an autographed copy
of The Only Negotiating Guide You'll Ever Need, by Peter
Stark and Jane Flaherty ($14.95 retail.)
To view the latest issue of The Master
Negotiator, the premiere on-line newsletter for negotiators,
follow this link:
The Master Negotiator, Volume 2, Number
11 The Fifteen Rules Every Negotiator Must Know
To view previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
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