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Tactic #85 - You'll Be Sorry
Summary: Moving a counterpart toward an
unpleasant outcome, then threatening to push.
When both sides in a negotiation have a great deal
to lose if the negotiation fails and a great deal to win if it succeeds,
the You'll Be Sorry tactic can be useful. One
counterpart pushes the other right up to the edge of some terrible
outcome, then threatens to push.
Example
Lee Iacocca, former chairman of Chrysler
Corporation, used this tactic of pushing his counterparts to the brink
when he was negotiating with the automobile unions in the late 1970s.
Iacocca's goal was to have the unions accept a final wage package of $17
per hour. The union would not settle for any less than $20 per
hour. One bitter night, Iacocca addressed the union negotiating
committee. "It was one of the shortest speeches I have ever given,"
he later recalled. He told the committee, "You've got until
morning to make a decision. If you don't help me out . . . I'll
declare bankruptcy in the morning and you'll be out of work.
You've got eight hours to make up your minds. It's up to you."
In this example, Iacocca practiced You'll Be Sorry, forcing the unions
to the edge of the cliff and then threatening to push. Although
the unions did concede, this historic Chrysler story turned out to be a
win-win for everyone: the workers, the government, the company, and Lee
Iacocca.
Counter
If a counterpart uses You'll Be Sorry
against you and you believe that your counterpart has the power to
back up the threat, you have two choices: You can utilize These
Boots Are Made for Walking and accept the consequences, or you
can decide what is most important to you and use the Trade-Off
Concession to negotiate other deal points.
Ask the Negotiator
Dear Master Negotiator, I
am trying to purchase a property. The seller insists they want to sell
it "as-is". It is not written into the contract, but the seller will not
do anything to aid in the sale. For example,the property needs the water
to be drained away from the house so that the termite treatment can be
done. We have offered to assist by digging a ditch ourselves but the
seller refuses. We have offered to patch siding on the house, etc. Still
they refuse to do any of it. We cannot close on it with a few of these
things outstanding, and the seller won't budge, almost as if they have
another buyer? What do we do, how do you negotiate with a DEAD FISH?
Or do you just walk away?
Christi
Dear Christi,
First, you need to remember the old negotiation rule
that says, the side who is the least committed to the relationship
holds the most power.
Second, in some states, you can sign a waiver noting
that the termite repairs have not been made and you are in agreement
with the seller not correcting the problems. This could be a problem for
your lender if you are only making a minimal down payment.
Third, I need to ask you, is this deal so good that
you will never find another house like this at a similar price? The
problem with water and termite damage is you never know how much damage
there really is until you get past the visual damage. If you do decide
to put on Nancy Sinatra's boots and walk, I promise that the next house
you put into escrow will be better than the one you currently trying to
buy.
Last, maybe your real estate agent can talk to the
seller's agent and find out the seller's true motivation for not wanting
to correct the property's problems. It does not appear to be a financial
issue if you are offering to do the work. If it is money, and you are in
love with this house, then you could offer to sweeten the deal and pay
for the repairs. We wish you all the best in the purchase of your new
home.
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 previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
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