THE ABC OF NEGOTIATION PLOYS AND TACTICS Negotiation tactics are specific negotiation behaviors that are used during negotiations. Sometimes tactics are considered the "tricks" of negotiation. Some tactics are part of the normal, ethical behavior that takes place during negotiations. Other tactics are considered to be "dirty tricks." Many of the tactics are not true tactics but are really just personal styles of behavior of people who are engaged in conflict. Tricks, however, are not likely to make you a better negotiator. Understanding the negotiation process is the most critical thing to learn about negotiations. A whole range of tactics are listed on the following pages. As the tactics are set forth here, no value judgment is made as to their honesty or usefulness in negotiation AGGRESSIVENESS ‘Aggressiveness or the lack of it may be an unchangeable part of one's personality. It might be useful in negotiations to force the other side into concessions or to make errors. As with anger, aggressive or competitive behavior is likely to provoke a similar response from the opposing negotiator. ANCHOR Anchoring is fixing or establishing the focus of discussion around a certain point, whether it is @ figure, a range, or and issue, simply by asserting it. Anchoring plays on the human tendency to fix attention on, and be influenced by, what someone says. ANGER (Real or Fake) Anger is a common emotion in many conflicts. It shows a serious disagreement with the opposing position and may cause a party to reconsider the reasonableness of their position or to reassess the resistance to that position. APPARENT WITHDRAWAL ‘The negotiator appears to have withdrawn from the process and yet still has the negotiation covered through an associate or by other means. ARISTOTLE’S APPEALS If you want to boost your powers of persuasion, you can’t do better than to use the 3 appeals which Aristotle defined as the secret of Ancient Greece’s greatest minds. He called them ethos, logos and pathos. 1, Ethos appeals are based on ethics and reputation. Quite simply, this is anything that makes your arguments sound more credible, such as an endorsement from a key person or citing expert testimony. Page 1 of 192. Logos appeals are based on logic and include statistics, facts and evidence. 3. Pathos appeals are based on emotion and means any argument which either creates a fear of not doing the deal on the one hand or a desire to enjoy the benefits of the offer on the other. BACKTRACKING OR UNRAVELING After a few issues appear to be settled, a negotiator, to get his way on a new issue, may threaten to undo the earlier agreements. BATNA A BATNA is your Best Alternative To a Negotiated Agreement and is the only certain way to be successful in negotiations. By preparing for negotiations with one party by sounding out an alternative deal with someone else gives you walkaway power. It means that, even if the alternative isn't quite what you want, you are still prepared to go there, if need be. One of the best examples of a BATNA took place during negotiations between the Malta government and the British over the use of Maltese harbors for British naval ships. During the negotiations, the Malta government courted the Soviet Union who was more than interested in a deal. This alternative gave Malta both leverage and walkaway power. BLAMING or FAULT-FINDING Blaming or assigning fault is an aggressive tactic which may invoke conciliatory behavior, either because of induced guilt feelings or a sensed need to mollify. It may focus negotiation on a substantively irrelevant, but psychologically volatile or conflictual, issue. BLAND WITHDRAWAL One of the negotiators might leave the negotiation without showing emotion or giving an explanation. A negotiator might take some action and then claim that he did not know that he was doing something in a way that the other side would object to. BOULWAREISM (Take-it-or-leave-it) Lemuel Boulware, former labor negotiator at GE in the 1940s, would do his research and make what he thought was a fair and reasonable offer to the union. There was only one offer made. Boulware did not offer any later concessions. It was "Take it, or leave it." This tactic will not work if the other negotiator expects you to make high demands with later concessions. In labor negotiations, such a tactic is now considered an unfair labor practice and is illegal Page 20f 19COQUETTE PRINCIPLE You can increase the power you have over others by raising the value of what you have in th eyes but then making them wait before they can enjoy it. This whets their appetite more and is salaciously known as "the coquette principle”. Other coquette techniques include... emphasizing the scarcity and rarity of what you have ‘+ underplaying the value of what you have to make them want it even more ‘* being reluctant to part with what you have as unworthy of their interest. DEADLINES: Set deadlines when you want them. deadlines when you do not want them need your answer by tomorrow at 3 p.m." Ignore DEADLOCK AND CONCEDE Negotiator organizes issues with least important issue first and most important issue second; and then continuing to alternate less important and more important issues. During bargaining, she deadlocks on the first issue, but then concedes, She then also deadlocks on the most important issue, but demands the other side concede since she conceded on the first issue and there has not been a reciprocal concession. DRAFTING THE AGREEMENT Once a deal has been made, it often must be put in writing. The drafter might try to add some unnegotiated terms into the document. The drafter can be protected from the other party slipping something in the contract. Either volunteer to do the drafting or be prepared to give the document a very careful reading, DRAFTSMAN OR SINGLE NEGOTIATING TEXT A party to negotiation brings to the table a document drafted as a basic text to set the agenda It tends to set the agenda and focus the parties on a prescribed resolution of issues. A means of taking the initiative in the negotiations, leaving the other side to work with it, ignore it, offer a counter-document, or use discipline in dealing with the document. DUMB IS SMART AND SMART IS DUMB You are generally better off by acting as if you know less than everybody else. It defuses the competitive spirit. This is the tactic often used by the TV detective Colombo. EMOTIONAL AMBUSH There are five emotional ploys that your opponents may try to use on you to soften you up: 1. personal attacks: "You're not up to it!" Page 3 of 192. accusations, e.g, of amateurism, awkwardness, intransigence, unfairness "Come off it..! You can't really mean that...!" 3. flattery: appealing to your ego, e.g. "I'm sure you have the authority to sanction this deal..." 4, warnings, e.g. of what might happen if no deal is struck. “Just think how disappointed you'll feel..." 5. emotional ambush: Emotional ambush is when an atmosphere is created in the negotiation room which makes you reluctant to displease or upset your opponent. You begin to feel that it would be rude to refuse them ESCALATION Most negotiations progress from a set of initial high demands, through a series of concessions, toa final, lower settlement. Sometimes a negotiator will break away from this pattern and actually increase or escalate the demands during the course of the negotiations. EXPLAIN OFFERS AS GAINS Psychological research suggests that when people are faced with a small sure gain and a risky, larger potential gain, they will generally go for the small, sure gain. However, when faced with a sure small loss and a larger potential loss, people do not want the small loss. They will hold out against the small, sure loss even if they risk a big, potential loss. Therefore, you should frame your negotiating proposals as emphasizing gains. This research suggests avoiding threats. EXPOSE THE JUGULAR The loser in a dog fight often rolls over and exposes his neck and soft belly. The winner usually stops the attack. Sometimes a weak opponent can get more by conceding weakness. The more powerful negotiator may not always squeeze out the last drops of blood, but may give a break to the weaker party. But, this is a big risk! FAIT ACCOMPLI You present your opponent with a completed and seemingly unchangeable action. Your opponent accepts rather than opening up the process again. For example, you can send back a signed contract, but one in which you have made changes. You send a signed check, but for less ‘money than what they other side wanted. FALSE DEMANDS. False demands are similar to making large demands. False demands are extra issues that the negotiator added to the initial demand so that they can be traded away as concessions. Both false and large demands help to disguise the true bottom line and interests of the negotiator. FALSE SCARCITY Page 4 of 19Psychologically when faced with a limited commodity, or the commodity becomes scarce or restricted, people react by wanting more of it than when it was more available. Negotiators use this psychology be suggesting that the opportunities are quite limited. FEEL, FELT, FOUND ‘Agree with them until you can get them to agree with you. There are three verbal steps. 1) FEEL: "I understand the way you FEEL." (Acceptance, not challenge.) 2) FELT: "Other people have FELT exactly the same way." (Their responses are normal.) 3) FOUND: "However, those people FOUND that ..." (Tell how other people have come around.) FEINTING An apparent move in one direction is used to divert attention from a move in the other direction. You look left, and then pass to the right. Mislead them as to your present intention. You stress goals that are unimportant to you and then give them up for concessions from the other side that are important to you: FIRST OFFER-LARGE DEMAND States an extreme demand, beyond or at the far margin of the range of credible or reasonable offers. This has the effect of setting the perceived or apparent bargaining range. Often combined with the tactic of splitting the difference. FLINCH React visibly (flinch) when you first hear the offer. Your nonverbal communication (you can add the verbal too) says "That is much too much! FORBEARANCE Forbearance calls for delaying, holding off, and stalling rather than giving an immediate response to your opponent's requests. If you concede too quickly, your opponent might gain a psychological advantage. Delaying your response might cause your opponents to rethink their positions. Even when you know that you will reject their offer, if you delay rather than give an immediate "no," you appear to have thoughtfully considered their idea. Page § of 19GALLIPOLI When talks are entrenched and leading nowhere, it can be useful to open up a new “front” or new avenue. This is sometimes called the Gallipoli ploy, after the Turkish town used to open up a second Eastern front in the First World War. For example, you may be discussing with an employee the importance of coming to work on time. In the middle of the discussion, the employee protests, “Other employees come into work late and you don’t say anything to them.” This is an attempt by the employee to deflect you from their issue and open up a diversionary discussion. One of the best responses you can make to Gallipoli is not to fall for the diversion but to ask @ question, such as, “What makes you believe | do not give other employees who come in late the courtesy of dealing with them one- on-one, just as | am doing with you?” GOOD-GUY BAD-GUY The bad-guy works with you first. He leaves the room and his partner, the good-guy, takes over and apologizes for the other guy's behavior. The good-guy appears to be your friend. He'll make you a good deal. Guess what? They are working together. HIGHER AUTHORITY The negotiator appears to agree with your position, but has to report to a higher authority. The higher authority is never present, and of course says "No deal" on those terms. This tactic is very common when buying a new car. "I'd like to give it to you at the price we talked about,” says the salesperson, "but the boss said 'no."" It is helpful to claim you must take the proposal to a higher authority, - your client, boss, partner, spouse, mother, etc. HOT POTATO If they hand you a big problem, try to hand it back to them immediately or at least let the stream out the potato. INDUCED COMPETITIVENESS Induced competitiveness converts what would ordinarily be a two party negotiation into a multi party negotiation where all the parties interested in a particular good are forced to compete with one another for it. The competition makes the item more desirable and drives up its price. ‘An alternative way of inducing competitiveness is to create an auction for the item. Page 6 of 19INSCRUTABILITY Inscrutability often comes from using silence and not offering any reactions. This is the cla poker player's tactic. Don't let them read your cards by reading your face. Actually, the face often will not leak out nonverbal reactions. Look to the hands and feet for the nonverbal leakage. IROQUOIS PREPARATION METHOD. High-level negotiations affecting the lives and livelihoods of others require stamina and resourcefulness. One way to prepare for such endurance tests is to copy the Iroquois before going into battle. They fasted; they got themselves into a peak of fitness; they practiced with their weapons until they could use them without thinking; and they trained like hungry prize- fighters before a fight. While your negotiation preparations may not go to such lengths, the Iroquois Method illustrates the need to focus so that we are physically, mentally and psychologically ready. JUST SEE IF | DON'T... Just See If | Don’t is an on-the-brink negotiating tactic and only advisable when negotiations have reached a crunch paint. It’s really a warning to the other side that, if they don’t see sense, you'll carry out your threat of walking away from the deal and taking some form of unpleasant action. KNOWING YOUR OPPONENTS The background research you need to carry out in preparation for negotiations is vital for getting ‘to know your opponents. It can include: ‘* a preliminary get-together to clarify initial claims, offers and positions ‘* desk research, for example the outcome of previous deals ‘+ investigation of alternative courses including getting a BATNA (the Best Alternative To a Negotiated Agreement) foot-slogging for on-the-spot information getting advice from your own experts. once you have information about the other side's position it can be compared to your own to find out how far apart you are. LATER, OR, I'LL THINK ABOUT IT AND GET BACK TO YOU LATER, Using a delaying tactic of “I'll think about it and get back to you later” is a good way to put off a decision while leaving the door open. It leaves enough doubt in the other side’s mind for them to consider changing their offer. This tactic works best after a lengthy period of discussion in which both sides have invested a lot of time and energy. Page 7 of 19If the other side use “Ill Think About It” on you, respond with a question that ties them down to a date for getting back to you or clarifies what they need to think about. A more aggressive response would be to ask, “Rather than go away and probably miss this deal, why not tell me what bothers you? I'm sure we can help you come to a decision today.” mits Negotiators can either set and respect limits or refuse to acknowledge them. If the legislative session must end at midnight, the limits can be changed by unplugging the clock LINKAGE Linkage attempts to expand the scope of a negotiation by bringing in issues which, while not clearly related, one can make a plausible case for considering. The effect is to change bargaining power and leverage, or to change the focus and character of the dispute or the set of gains or opportunities the parties are trying to decide. Adding issues or parties can change the dynamics of negotiation. LOW BALLING The negotiator makes a low offer to attract the other side, but there is no intention of going through with the deal on the terms offered. Later, they will say that there are "additional" charges or that the circumstances have changed. This is a "bait-and-switch” tactic. MISLEADING CONCESSION PATTERN In theory, a party will make smaller and smaller concessions as bargaining converges on his bottom line. Knowing this, negotiators can mislead the other side by using a concession pattern that converges at a point above or below his actual bottom line. The other side, reading the concession pattern, may mistakenly conclude the conceder has reached his bottom line. MODEST DIFFIDENCE When you sound absolutely certain of a position, you take on an air of superiority which can antagonize others. if you introduce a touch of modest diffidence, you sound more open to negotiation. NEEDS NOT POSITIONS Throughout the first half of a power negotiation, your aim is to take a position and defend it. In the second half, when you are trying to reach agreement, your aim is to uncover the real needs of the other side behind their public position. it is meeting both sides’ needs that ensure a settlement, not battling against respective positions which only lead to stalemate. NIBBLE Page 8 of 19The deal is done, or at least it looked that way. Now one of the negotiators asks for one more small concession. The concession is so small that the other party often gives in just so not to upset the deal. OBLIGATION One of the oldest of power tactics in trade is "obligation". This is the technique of putting people in you debt with generous acts. PARTICIPATION AND ASSOCIATION Get others to join in on your side. Tom Sawyer was good at doing this. Get important people to work with you, It is negotiating power by careful alliances. PERSISTENCE No. No. No. Be persistent in your resistance. Say "no" until your tongue bleeds. The refusal to move can test the other side’s firmness and uncover just how much concession room there is. PLAYING TO FEARS OR ASSUMPTIONS Negotiators can advantageously manipulate the other side’s fears or assumptions. Whenever a party discloses in some way that it has made an assumption favorable to the other side’s, bargaining position, the other side can use that knowledge to its advantage. POWER PLOYS Power ploys are attempts by the other side to wrong-foot you by exerting some kind of Svengali- like power over you. You can resist these attempts by seeing through their power ploys. If you are clever, you can even turn their power ploys to your advantage using these tactics: ‘+ simply ignore them. ‘* name them. This is like the naming of mythological beasts of old in order to scare them away. "Oh, | see you've placed me facing the sun. I might not be able to see too well from there. I'll just move nearer." ‘© suggest you discuss them. "Ah, | see you're playing "Hard to get". Shall we discuss tactics?" © counter them and call their bluff. "I see you're playing "Higher authority", Well, as a matter of fact, | think we would be happy to hear from your boss.” Page 9 of 19PRECEDENTS, As justification for refusing to do what the other negotiator wants you to do, you claim that the desired action would set a bad precedent for you. “If | do that for you, | will have to do that for everyone." “PRECONDITION” DEMANDS Setting a precondition to negotiation is a way of obtaining a concession without giving any in return. Demanding satisfaction of a precondition may not only gain a concession without cost, it may also reveal how eager the other side is to secure a deal. The response to this tactic is to be clear you consider the precondition a part of the negotiation, and that you expect a reciprocal concession. PRINCIPLE ‘Appeals to principle are often highly persuasive. One good way to prepare for negotiations is to develop arguments of principle for the positions one takes. QUESTIONS The side that controls the questions in a negotiation is the side that is always in control Questions do a number of things: they allow you to sit back and listen; they help you gather information; and they stop you from giving anything away. There are no-go questions and go questions in negotiations: No-go questions are those that. * reprimand and accuse (Why didn't you...?) ‘* entrap (Are you still peddling the Union line, then?) ‘* threaten and pre-judge. Go questions are those that... '* open (What do you think...?) ‘* seek permission (Why don't we look at things differently?) ‘* are barometric (How would you feel if...) RED HERRING Ared herring is a false, yet highly distracting, issue that a party can use to bring pressure to bear on the other side. It is most useful in negotiations where the parties represent outside constituencies that can be manipulated to pressure a recalcitrant party. The false demand tactic isa version of the red herring. Page 10 of 19REINFORCEMENT AND REWARD Treats concessions as rewards for desired concession behavior of the other side. The concession follows the other side’s concession and is a more than equivalent concession, the excess being the reward. This produces more concessions and even stimulates concessions to continue even when the negotiator stops making reciprocal concessions. RELUCTANCE Accept their offers very slowly. If you are too quick to accept, they will think that they are giving you too much. They may even try to back out on you. REVERSAL You move in the opposite direction. By appearing to go backwards (or sideways) you are SALAMI (Piecemeal) Do not go for everything at once. Go for it piecemeal. Take one slice at a time until you get the whole salami. SOWING DOUBTS; DISMISSALS OUT-OF-HAND OR PUT-DOWNS. Sowing doubts about proposals, or curt dismissals of offers, and various other kinds of put- downs can undermine the other side’s confidence and cause it to make faulty judgments about the relative merits of its bargaining position. SPLITTING THE DIFFERENCE When the parties are stuck at different positions, one solution is to each compromise half the difference. With offers at $600 and $1000, the compromise would be $800. This technique gives the "appearance" of fairness. But is it fair in your case? STATUS, AUTHORITY, ASSOCIATION AND CREDENTIALING Negotiations can be influenced when one side is consciously or unconsciously impressed by the status, stature, or authority of the other side, and either defers or makes unwarranted assumptions about the other side’s power, strength, or resolve. Association is a similar tactic using borrowed authority, where negotiators seek legitimization by making some claim of important association (such as name-dropping). Page 11 of 19‘SURPRISE You make an unexpected move or present a withheld goal. The other side has not ant your shift in methods and arguments. Examples are escalation, walk outs, new data, and emotional reactions. TENTATIVE OVERTURES You can make tentative overtures to the other side to inch your way forward out of deadlocked negotiating positions. Here are three ways to do ‘+ Yes, yes, yes. The more you use the word "yes", the more you encourage positive and constructive thinking. "Yes, you have a point...;Yes, | can see that... Yes, what you're saying is right..." "yes... and" instead of "yes...but™ Not: "Yes, we like your ideas, but you're asking too much." But: "Yes we like your ideas and if we could agree a price, we would be interested.” ‘* "I" instead of "You" Avoid the finger-pointing of direct "You" statements. Not: "You're | think you're wrong.” ULTIMATUM (take it or leave it) You claim that this is your last offer. They must take your offer or the negotiation is over. Say that this is your best and last offer. However, in reality, nothing prevents you from making another offer at a later time. In2 fact, most negotiations end when the parties think they have the best offer they can get. Settlement is reached when each party believes that they cannot get a better deal without spending more time, money, and emotional energy than the potential improvement over the current situation is worth. UNCERTAINTY Natural negotiators are comfortable with uncertainty, while those who fear the process aren't. Samfrits Le Poole in his book “Never Take No For An Answer” recalls a deal he made to buy a small plane. He got it for the ridiculously low price of $14,500. After the negotiations, he asked the seller why he had sold for such a low price. The man admitted that he found the whole negotiating process uncomfortable because of the uncertainty. He was wracked with questions such as “What if | don’t get another buyer?” and “What if nobody else comes forward?” As a result, he settled at the first offer simply because he couldn't stand the uncertainty involved. VARIABLES Playing around with the variables in a negotiation is often the only way that you can reach a deal. The more variables you have in terms of price, terms, and deliverables, the more room you have for maneuver. So, when you get stuck on the main issues, change the package. If you're Page 12 of 19deadlocked on the price of the house, throw in the furniture and fittings, agree to a garden makeover, or pay for their removal costs. WALK AWAY The classic tactic in third-world markets and is often used here too. if you cannot get the price you want, walk away from the deal and maybe they will follow you. This tactic is a bluff. To work effectively, you have to be able to truly walk away from this deal and seek out your BATNA. WHIPSAW OR “OTHER OFFER” A potential buyer may play the seller off against another seller (whipsaw the seller with another source of supply). If the third-party seller is real, they represent a real BATNA for the buyer. This tactic may work well for a weak buyer. Sometimes, however, the buyer simply pretends that another source of supply may exist when in fact it does not. WRITING THE AGREEMENT When you have edged your way to a solution in negotiations, you should write down exactly how you understand it. You should do this even if the other side also writes down their understanding of the agreement. XCHANGING CONCESSIONS Exchanging concessions is not a strategy you should use lightly in negotiations, particularly if the other side starts by offering you a concession and then expects one in return. This is because making concessions is a sign of weakness and betrays a need to please the other side, Almost certainly, an experienced negotiator will interpret any concession you make as weakness and push you into making more. If you do decide to make a concession, do so reluctantly and optimize the value of what you give away. In the same vein, if the other side gives you a concession in the expectation that you will do the same take it reluctantly and let them know that its worth is not that great to you. YIKES, YOU'VE GOT TO BE KIDDING Yikes, You've Got To Be Kidding is a shock tactic used in the opening exchanges of a power negotiation to make your opponents sit up and think and maybe re-assess their offer or demand. As one seasoned diplomat put it: "Be unreasonable; appear reasonable.” You owe it to both your side and your opponents to reject a first offer - even if it is within your acceptable settlement range. Why? Because if you accept their first demand, they'll be left thinking they could have done better and if they accept your first offer, you'll be left wondering if you couldn’t have done better. YWHTDBTT (You Will Have To Do Better Than That) Page 13 of 19If the other side is told "You will have to do better than that,” often, they will make you a better offer. Some people claim to not even read the first offer. They just ask for a better offer, no matter what the first offer was, They assume that the person who made the offer made an excessive demand. ZIPPED, OR KEEPING YOUR MOUTH ZIPPED Keeping your mouth shut, or zipped, is one way to keep the other side guessing. No matter how much they try to get you involved, if you can stay quiet and give nothing away, then you are in control of the negotiations. In "The Ransom of the Red Chief", O. Henry tells the story of the spoilt little rich boy who is kidnapped and held for a large ransom. Instead of giving in, the parents don't react at all to the ransom demands. As time goes by, they even feign a loss of interest in the boy's fate. The kidnappers meanwhile become so exasperated with the boys’ antics and their unexpectedly long baby-sitting stint that they finally pay the parents to take the boy back! Note: Please understand that negotiation tactics probably work best between people who do not know each other well and who will not be working together in the future. When you are negotiating with your family, friends, co-workers, and other business associates, think about overall negotiation strategies and about interests rather than simply about negotiation tactics. J eeEND IH Page 14 of 19NEGOTIATIONS: STRATEGIES & TACTICS Preliminary meeting to discuss a wide range of ideas & to discuss strategies and tactics. List ideas without evaluating them. Blanketing ‘Ask for everything at once. Bracketing ‘Narrow opponent down to determine what they really will take. Dominating. Playing top dog. ‘Undermining | Put opponent on the defensive. (Dig underneath) Surprise Change in approach. Show you have information the other side does not expect. Present new proposals or demands. Emotional outburst. Feinting Pretending. Lying. A false show to catch the opponent off guard. Give the impression you want one thing when you really want another. Salami Taking something bit-by-bit (one slice at a time) rather than the whole thing. A small concession asked for at the end of a negotiation is called a "nibble." Forbearance To postpone for a period of time. Take time out. “Let's take a break.” Deadline Knowing your opponent's time limit allows you to put pressure on them. Set a time limit. Push your opponent to make a decision by a certain time limit. Good Guy, Bad | One person acts tough, a second person acts nice - hoping to induce a Guy concession. limited Claim of not enough authority to be able to approve the deal on the terms ‘Authority presented. Fait Accom ‘An accomplished fact. The thing is already done so argument is useless, Silence By using silence, you hope the other side will speak (to their disadvantage). ‘Apparent ‘Make opponent think you are unwilling to discuss the issue further. The goal is Withdrawal to get them to reduce or give up their demand. Reversal ‘Speaking from the viewpoint of your opponent and incorporating their interests, you make it sound like your opponent has gotten a good deal from you. Also ‘means to act in a different way than expected. +eRENDER® Page 15 of 194 COMMON TRAPS YOU SHOULD AVOID IN NEGOTIATION By Jens Thang Successful neg’ »n comes from avoiding some of the common traps, Here are 4 common traps and how you can avoid them to help you be more successful in your negotiation: 1, Holding up of decision Sometimes when you want to hold a meeting with the other party, they always have some reasons to delay the meeting. They give all sorts of excuses just to avoid having the meeting with you. “My partner will not be in town this week, I don’t think we can have the meeting.” “We are waiting for the department head to come back from his holidays.” “Let me call you back on this, | will have to discuss with my team.” The other party might be intentionally trying to slow the process now. Perhaps they are unable to make a decision. Perhaps they are waiting for new opportunities. Perhaps they are waiting for a new bid from your competitor. Solution: Have them agree to an explicit timetable. “Let's decide how and when we are going to meet.” Be firm and assertive. 2. Unre’ stic requests ‘The other party might start to come up with unrealistic request before the deal is done. “"| will agree to closing this deal only if | receive a cut from it.” “| will not agree to this assignment unless he is taken out from the team.” “|will not agree unless...” You might lose the deal if you do not accept his requests. Solution: Be explicit about the terms and conditions at the beginning of every negotiation Page 16 of 193. Shuffling of key players You always see new faces when you negotiate. The other party always rotate the people in th team. You get into this cycle of negotiating the same issues but with different outcomes each time. Issues that were previously negotiated were cast off and override. This can get very frustrating if you are eager to close the deal. Solution: Call out the tactic. Ask them to decide who has the authority to make decision. 4. Unfounded facts Sometimes when you are negotiating, the other party might throw in some “facts” just to test how you react to it. They are trying to artificially increase their bargaining power. This is very detrimental to the trust and relationship. “We were talking to one of our partners, and heard that...” “according to my sources...” “| cannot tell you who | heard it from but...” Solution: Use standards that both parties agree upon. eeENDE HH Page 17 of 19DEALING WITH TRICKY NEGOTIATORS When does skilful play become gamesmanship, and then deceit? Some of the more common negotiating ploys are listed below with a possible counter. The objectives of most tactics are to alter the other side s perception of the relative strength of their position but there is always the risk that, whether they seem to work or not, the relationship of the parties may be harmed, positions hardened, and further progress made more difficult. Exaggerated bluff Recognize pressure but don’t give in. Ask You can t be serious!!! questions such as; Why do you say that? What are your main concerns? The invisible competition ‘Ask for information to check if real, Your competitor has quoted lower comparing like with like etc. | believe you, but my boss won t unless you can show me No-way Jose see. What do you propose instead? It s against our company policy. Salami Tie every concession with conditions. Use Athin slice ata time the We may be able to but only if. - reverse salami. Deadline dilemma Establish timetable at onset. Allow yourself Using delays and deadlines flexibility. Be prepared to reconvene at a later date. Examine reasons for tight deadlines-are they under pressure and can you use this to your advantage? Blowing Hot and Cold Be aware of it. Seek reasons for change The low reactor. Initial enthusiasm, | by asking the When did you start to think sudden cooling off. that? Rather than the Why? question Columbo Draw up agenda of all the issues at the Just one last thing start. When faced with final demands, check there is nothing else to come before considering whether to agree. Don’t be cajoled. Watch the Look at the Look at how much I've done for you! | real cost/value of small favors in return Presenting concessions as a personal Premature order Confirm the agreement before taking any If you start the process the order will | action. Make future relationship the issue if follow. If it doesn’t, you are committed, | buyer is breaking trust. Counterbluff and the buyer makes demands. Production and new customer is risk; It's none of my business but Treat as genuine complaint, write it down, Complaints about your Company's | and then change the subject. It s been noted, service or attitude. and will be investigated, but it is a separate Page 18 of 19'll have to refer it to the board. Establish authority at start. Insist agreement honored, or negotiations must start again from square one. All Change New faces, predecessor_had no Previous agreements honored, or start from scratch. Raising the roof Each concession followed by a raised demand. Pressure to agree before new demands made. Call attention to the tactic. Adjourn and consider on what basis you want to continue. Insist on principle. My way or the Highway And that s my final offer! (Only to be used if you mean it), 've not even begun to negotiate Look — for workable variables. Walkout Clearly we've reached an impasse -can | suggest we adjourn for (hours/days) . Over my dead body Refusal to —negotiate = or preconditions for negot Is it a ploy? Talk about their refusal to negotiate. Suggest options. insist on principles. Time ta Let me think about it overnight. Fine, let's both review it and start again tomorrow. OK, but if one issue is reopened it affects the package as a whole. SeREND ER Page 19 of 19