Published by Peter Barron Stark Companies

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    Tactic of the Week   May 4, 2005


Peter Baron Stark: PBS Consulting - Everyone Negotiates

Peter Barron Stark
President


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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

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Negotiating Tactics of the Week


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