The low key approach

Don’t appear too enthusiastic during negotiations. Over-enthusiasm during

negotiations can encourage skilled negotiators to review their strategy and demand

more.

If you are in a negotiation and the other side is not responding to your proposal, recognise this could be a tactic and avoid giving concessions just to cheer them up.

Salespeople like to be liked and will often give money away in a negotiation, if the

other side appears unhappy.

For example, if you are buying a car avoid saying to the seller things like:

This is exactly what I’m looking for. I really like the alloy wheels.

Develop a low-key approach. Say things like:

Well, it may not be exactly what I’m looking for but I may be interested if the price is right

Negotiation Strategy

Negotiation strategy is a topic that elicits enthusiastic debate in most forums. Most organisations and individuals approach negotiations in a manner that can be best described as ad hoc. Often times the “negotiation strategy” is discussed briefly in the car or on the train on the way to the meeting.

In the competitive environment that organisations and individuals find themselves in the present day, it is necessary to approach the topic of negotiation strategy far more seriously. Firstly, we should investigate our negotiation strategy at the highest level of abstraction i.e. at the corporate level. If we want to reduce variance in the way that we deal with customers, suppliers and other key stakeholders it follows that we should define a negotiation strategy that sets a framework against which the organisation can measure itself. Any negotiation strategy should answer the questions why, what, who and how?

Examples of why may be because we have a need to increase the margins on new business or reduce the purchasing budget.

Examples of what may be that we will not extend discounts in excess of 10%, we will not make any concessions without a counter concession and so forth.

An example of who may be to ensure compliance to the strategy by all our customer/supplier facing teams.

Finally, an example of how may be that we will ensure a formal strategy is compiled, a process is derived from this strategy, and all our negotiators will be adequately trained & equipped with tools to ensure compliance.

It is always interesting to take a look at some of the ways negotiators go about their business. Before reading through some of the content that follows, it is important to note that it is regarded as of the utmost importance to use all methods of persuasion honestly and not with the sole purpose of benefiting yourself at the cost of others.

It is important to use all methods of persuasion and influence ethically. The use of these methods should create something of value to both sides in any interaction. 1. The Nibble

This is a favourite technique used by sales people. Immediately, when a deal is concluded, they add additional cost items, e.g.

Because people become less stressed once a deal is made, the sales person has an excellent chance of succeeding with add-ons (kids are masters at this play). Think of a car sales person who, after the decision is made to buy the car, suggests that a sun roof, alloy wheels etc. could be added for a few extra pounds per month.

The customer can counter this by responding to the sales person's initial statement.

The customer has a moment of power because the sales person is psychologically at his weakest directly after the deal is made, as he does not wish to see his hard work undone. By nibbling you can get a little more after the basic deal is clinched.

This "tit-for-tat" style of negotiating often make people uncomfortable, as they do not want any hassles when they want something and just simply buy the product in good faith, regardless of the "ploys" that salespeople may be using.

2. The Flinch

Here the customer acts as if he has not heard the price correctly, but a new benchmark is set that will now act as the basis of the bargaining to follow.

A concession typically follows from the sales person.

Should you not flinch when a low offer is made, the other party will conclude that you are still above your real base. By accepting an offer without flinching you may miss an opportunity to do better. Although the other party may feel they have done well, they will not feel as good as they could possibly feel, as they will have a suspicion that they could have done better. 3. Deferring to higher authority

Customer: "I'm not happy with the repair fee. It is far too high for the amount of work done. I refuse to pay this much.

Engineer: "I just work here. If you don't pay, you cannot have your machine. I have no authority to change the costs."

A neat deferral to higher authority. What can you do?

Customer: "Who can?"

The engineer could counter by responding: "The directors in our Belgian office."The only way to counter this ploy is to ensure that you probe for all decision makers during your information gathering phase.

4. Good Guy, Bad guy

A sales person and the owner of a property are negotiating with a prospective buyer.

Difficult and dangerous. The buyer may end up asking the sales person to negotiate on his behalf with the owner. The best way to counter is to simply tell the other party that you know what they are doing. A ploy perceived is not a ploy that works.

5. The set aside

You are in a meeting where the purchasing manager is talking to the representative of a printer.

The sales person is in danger that the negotiation will collapse before it has begun; before a relationship is built; before all the facts are out in the open. An inexperienced negotiator will either now give a concession or allow the negotiation to collapse.

The experienced person will respond and while saying , it is also helpful to gesture the putting aside of this issue for a time by making as if you put it at the edge of the table or on the floor.

6. The hot potato

How do negotiators pass hot potatoes? Ownership of the problem is given to the other party.

A skilled negotiator will test the validity of the buyer's statement. The buyer is forced to own the problem.

7. Splitting the difference

Get the other party to suggest that you split the difference.

The dilemma presented by this technique is that the seller ends up splitting his side twice, causing the buyer to pay only 25% of the difference.

8. The trade off

The average consumer is likely to accept an excuse from a service provider. On the other hand, a skilled negotiator will see this as another moment of power to negotiate a concession. It stops a further process of "grinding down". This "promise" could also be banked for future use.

9. Funny money

Be careful of this one. You are about to spend thousands of pounds more than you intended. Negotiating with funny money works!

10. The walk away

Once a negotiator has decided that he or she absolutely must have something, a big erosion of power takes place. Know this, there are no once-in-a-lifetime deals. Do not become so emotionally involved that you cannot walk away. You only have real power if you are prepared to walk away.

11. Delaying & stalling

When the other party deliberately uses delaying tactics you should not focus on the behaviour, but rather on the intention behind stalling. Do they want to wear you down to make you give up or become more flexible? Stay emotionally detached and make sure you do not have a deadline, especially not a self-imposed one. Counter this tactic by telling the other party you know what they are doing and that it will not work. You could also consider giving them a deadline that is well within the ultimate deadline you might have.

12. The pre-condition

This is where a negotiator obtains concessions for merely consenting to negotiate.

The unskilled negotiator may easily fall into the trap of limiting their options even before the negotiations start. Such a concession belongs in the bartering phase where a counter concession can be asked. Counter this by setting aside this issue for a while and just continuing with the negotiation.

13. Personal attacks

Personal attacks are often a deliberate tactic to throw you off balance or to make you emotional. Watch out! Remain emotionally detached and recognise it as a tactic. Interrupt the pattern by smiling. Keep people and issues and people and their behaviour apart. You could also respond by reminding the other party that you together framed the negotiation as "agree-to-agree" and working towards a win more/win more outcomes.

14. The withdrawn offer

This tactic can be used at any time in the negotiation, especially when the other party is deploying the walk away tactic. It involves a bluff by suggesting or threatening to take away agreements that have already been made. This could often result in a response such as this: "I'm sorry, it's too late! We are accepting your offer!" The other party then reluctantly lets the item go. This results in one party feeling that they have secured a good deal. A good counter to this tactic is to walk away and test the validity thereof.