Become A Master Negotiator

Summary: Discussing the issues that can be easily agreed on before addressing the difficult issues.

In complex negotiations, there are usually many deal points that need to be discussed and negotiated. Issues such as price, delivery schedules, service agreements, warranty, who will actually perform the work, training, and how add-ons or additional work will be handled are all examples of negotiable issues that need to be determined. If both parties are close to agreement on these issues, it may be best to discuss them first in the negotiation.

Example

When unions and management teams negotiate, they almost always negotiate the easiest points up front, and then save the economic issues for the very last. This serves two purposes. First, it speeds up the negotiation by getting resolution to the issues on which both parties agree. Second, it helps build the relationship between counterparts by allowing them to reach agreement on the easier issues.

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Summary: Adjusting goals when it appears the original goals are unobtainable.

Sometimes you may be unable to accomplish your negotiation goals. In those instances, it may be best to quickly switch goals. For example, if you are buying a house and the seller wants a price that is unacceptable to you, you may first try the tactic of YIKES! You’ve Got to Be Kidding! If that doesn’t work, you may try to support your offer with Facts and Statistics. But if both these tactics are unsuccessful and you realize your original goal is unobtainable, you may need to change your goal.

Example

An individual buys a two-thousand-dollar couch from a furniture warehouse. When the couch is delivered, the buyer finds out that its springs make exceedingly annoying squeaks whenever anyone sits down. The initial goal of the buyer is to get the furniture warehouse to replace the couch with a new one. But when the buyer calls, the manager states that the company is going out of business, so all sales are final. All the tactics the buyer has initially planned to use (e.g., stressing the value of a long-term relationship, threatening to report the company to the Better Business Bureau) will be useless since the seller has no commitment to the relationship. So the buyer decides to switch her position and asks, “If you will not replace the couch, will you at least come to my home and see if there is anything you can do to fix the squeaks?” The seller agrees. After examining the problem, the manager puts the buyer in contact with the manufacturer, who agrees to send out a service technician to fix the problem or replace the couch.

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Summary: Adding an extra or add-on to make a deal work.

At times you may need to add a little something extra to make a deal work. For example, a salesperson may decrease the price of a product, add a warranty or training at no additional charge, or agree to extend a sale price to make a deal more enticing. This tactic of offering an extra or add-on is called Sweetening the Deal.

Example

A customer tells a carpet saleswoman, “Your carpet is a dollar per yard more expensive than your competitor’s.” The seller Sweetens the Deal by saying, “I will carpet each of your closets for free if you will sign the contract today.”

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Summary: Making a final, specific demand to force a counterpart to make a decision.

From time to time it may be in your best interest to “draw a line in the sand,” or create a rule that allows you to hold your counterpart accountable. One tactic you can use is to tell your counterpart the actions you will take if your conditions are not met.

Example

A client calls a consulting firm and asks to tentatively reserve a date for a seminar to be presented at her company in approximately six months. Three months prior to the date in question, the consulting firm calls the client and asks her to confirm the reserved date or the firm will have to offer it to another client who has requested the same day. The client is told that a confirmation is needed within twenty-four hours, which makes the deadline her Ultimatum.

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Summary: Getting something in return for everything that is given up.

A good rule to remember in negotiation is to get something in return every time you give up something.

Example

A home buyer states, “I will buy your house for $480,000, but for that price, you will have to throw in your washer and dryer.” The seller responds, “If I do that, you will have to close escrow in thirty days,” or, “You will have to pay $482,000.”

If the seller does not get a trade-off every time she makes a concession, her counterpart will most likely ask for more concessions. Then, if the seller suddenly says, “Wait a moment. I already gave you the washer and dryer, and now you are asking for more concessions,” the buyer can respond, “Why are you bringing up the washer and dryer? We already agreed to that.”

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Summary: Using statistics to support an offer or a point of view.

Anytime you can incorporate Facts and Statistics into your presentation, you have a tool that your counterpart will find difficult to handle. Reliable facts can add a tremendous amount of power and credibility to your case. But be careful—if you quote statistics incorrectly and your counterpart proves you wrong, you lose your credibility. Once this happens, you have to fight twice as hard to gain any deal point.

Example

An employee goes to his boss with a recently published salary survey documenting that the employee’s salary is significantly below market. The employee has pulled Facts and Statistics that examine salary levels by industry, position, and geographic location to demonstrate the discrepancy.

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Summary: Saying that the last offer is unsatisfactory in order to get a counterpart to make a better offer.

The idea behind this tactic is very simple. When someone makes you an offer you think could be improved, you simply respond, “That’s Not Good Enough.” Then pause and let your counterpart make the next response.

Example

Henry Kissinger, Secretary of State under Richard Nixon, was a master at this tactic. According to one story, his chief of staff once handed in a report he had written on an aspect of foreign policy. When Kissinger received the report, he asked simply, “Is this your best work?” The chief thought for a moment and, worried that his boss would think the report was not good enough, responded, “Mr. Kissinger, I think I can do better.” So Kissinger gave the report back. Two weeks later the chief turned in the revised report. Kissinger kept it for a week and then sent it back with a note that said, “Are you sure this is your best work?” Realizing that something must have been missing, the chief once again rewrote the report. This time when he handed the report to his boss, he said “Mr. Kissinger, this is my best work.” Hearing that, Kissinger replied, “Then this time I will read your report.”

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