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?

This tactic is one of several tactics we recommend you never use. Honest, credible negotiators don’t need to use this tactic. However, there will be times when this tactic will be used against you, so you need to be prepared with the counter.

Summary: Using unpleasant or insulting behavior to intimidate a counterpart.

One of the most challenging counterparts to deal with is a shark. Shark-like behaviors include yelling, screaming, swearing, or fist pounding. The tactics sharks and bullies utilize are usually successful because most people would rather give in and retreat—with their shirts still on their backs—than fight.

Example
A team of union employees is negotiating a contract with management. One of the union representatives starts yelling at the management team whenever he does not appear to be winning a deal point. His behavior intimidates some of the managers, who are tempted to ask their representative to give in rather than having the union member continue making a scene.

Counter

The most effective way to deal with a shark is to get closer to him, not to retreat. If you show that you are not intimidated, his bullying behavior becomes useless.

In the scenario above, management’s representative has four possible counters:

1. He could get up, walk out, and never come back.
2. He could say something like “Most people who negotiate with us do not feel a need to yell, swear, or pound their fists. I wonder why you feel a need to act this way.”
3. If he knows his counterpart to be a bully, before the discussion even starts, he could say, “I have been hoping all week that you will yell and scream like you usually do. Do you promise you will do it today?”
4. Finally, if he is really confident and wants to have a little fun, he could say, “You know, you frustrate a lot of people when you yell and swear, but it kind of excites me. I love people of passion! Will you do it again?”

Using these counters takes confidence, but if you use them well, a bully may yell and swear at others but, most likely, will not yell and swear at you.

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

Summary: Providing the final terms of the negotiation only to change them last minute.

A counterpart might use the Scrambled Eggs tactic to confuse you and your decision-making process. Sometimes facts and figures are used; other times, false information is provided.

Example
A salesman is adding up the cost of some furniture. The buyer says she does not want to spend more than $3,000 for the four pieces she is interested in purchasing. The salesman adds up the prices and says the total comes to only $2,800. But when the paperwork is completed, the salesman claims that he has made a $200 error. Once tax and delivery fees are added in, the total is over $3,000.

In a second example, a person selling a car uses facts and figures, such as Kelley Blue Book prices, to establish the value of his vehicle. He shares the bottom-line figures with a potential buyer, neglecting to point out that the price he is quoting is for a car with lower mileage. His hope is that the buyer won’t ask for proof or a breakdown of figures.

Counter

In the first example, the buyer could expose the furniture salesman’s tactic, saying that she believes the salesman is deliberately trying to deceive her.

In the second example, the car buyer should ask to see the Kelley Blue Book to verify the numbers, and then point out the discrepancy.

In either example, These Boots Are Made for Walking would also be effective.

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

Summary: Asking your counterpart for leniency before making their first offer.

There are times when you want the best available product or service but do not want to pay the price that the top products or services command.

Example
In searching for a certified public accountant, we were given the names of three individuals who were qualified and experienced with our type of business. We interviewed the first two accountants and requested they create a proposal. We scheduled the third accountant for the last interview because two different people who referred this accountant to us said she was one of the best, but, "Very, very expensive.” When we met with the third accountant, we shared the background of how she was referred to us and her associated reputation on price. We ended the meeting by saying, “We would love to work with you but we are not sure if we can afford your fees. Since we are a small business, when you work up the proposal, will you go easy on us?”

Counter

In this situation an effective counter could be the Feel, Felt, and Found. The accountant might have responded, “I can understand that since you have not experienced the high level of service I provide, you might feel my fees are high. Many of my existing clients felt the same way you do until they discovered that the amount I am able to save them is substantial compared to the fees I charge for my services.”

A second tactic that may work well in this situation is to Lose the Battle to Win the War. The accountant may have stated something like, “I will give you a new client discount so that you will quickly see that the value gained by my professional services will make the fees seem inconsequential.”

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

Summary: Letting your counterpart vocalize his desired outcome first.

Often in a negotiation, your counterpart will try to “test the waters” by attempting to have you vocalize your outcome first, giving them the advantage of adjusting their offer and perhaps giving less than they were prepared to.

Example
I was in the market for a new dishwasher. After researching different models and prices, I was ready to buy. During one shopping trip, I approached a salesman and said, “I have been shopping around and I can get a better price on this dishwasher at XYZ. I would like to purchase it here but need to know what the best price is you can give me.” He asked me, “What price did XYZ quote you?” He wanted me to Go First and divulge my bottom line. I stood firm and repeated my question, “What is the absolute best price you can give me?” After a long silence, he finally gave me a price that was well below anyone else’s price. By forcing him to Go First, I’m confident that I got a lower price. Had I gone first, he would have simply matched the price and not beaten it.

Counter

In this case, an effective counter would have been to use the tactic of Calling Your Bluff and ask for documentation. He could have said that he would consider a lower price if I could show him an advertisement or written bid with the lower price on it. Or, he could have utilized the tactic of We’ve Never Done That Before and simply state that it is not their policy to match other competitor’s prices. If he had given me the best price possible to start with, he could simply stand by that price.

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

Summary: Giving up all direct communication with a counterpart. This tactic is reserved for the most difficult counterparts, when all other viable strategies have been exhausted.

Once in a lifetime you are “blessed” with a neighbor or business associate who is truly impossible to deal with. In this rare instance, a special tactic is needed.

Example
For two years, Vic puts up with his neighbor’s complaints about his dog, his kids, his trees, his car, his music, etc. Vic has finally had enough, and when his neighbor starts harassing him again, Vic says, “I give up! I will never communicate with you directly again. My next communication with you will be in the form of a letter from my attorney.”

Counter

The best counter for this nasty neighbor would be to utilize the tactic of Forgive Me, For I Have Sinned in an attempt to reopen the negotiation. Trying to keep the negotiation open would probably be in the nasty neighbor’s best interests, since whenever attorneys get involved in a situation, the attorneys are usually the only ones who come out ahead. A second, more likely, tactic for a nasty neighbor would be Calling Your Bluff. The neighbor would look at Vic and say, “Great, I look forward to getting your attorney’s letter.” Although in this example, the neighbor seems to be the one who has been the bully for two years, when Vic uses You’ve Pushed Me Over the Edge, he becomes the bully. A third possible counter for the nasty neighbor would be to try to get closer to the bully (Vic) by asking, “We have been working out our own problems for over two years. Why do you see a need to get an attorney involved now?”

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