7. Splitting the difference

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

Buyer: "You want Ј10 000 for this car while I only have a budget of Ј9 000. It's a shame that we cannot do business with only Ј1 000 separating us. Is there anything we can do?"

Seller: "I really would like to sell it to you. Why don't we split the difference?"

Buyer: "How do you mean? Are you saying that we can agree on Ј9 500? Sounds fair to me, but I will have to consult my wife. May I use your phone?"

After consulting his wife, the buyer says: "I tried. What a pity. It's a shame….we are only Ј500 apart!" The Ј1 000 is now forgotten.

Seller: "I tell you what, let's split the Ј500. Will she accept?"

Buyer: "So you are saying Ј9 250?"

Seller: "Yes, why not? Can you get her to accept it?"

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.

In the next edition of the Winner's Circle we will be looking at some more tricks of the trade…….

8. The trade off

Printer: "Those letterheads that you wanted to be delivered by the 20th, unfortunately we've had a problem. They will not be ready before the 30th. I'm very sorry, but I have done everything possible. I hope this is OK?"

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".

Manager: "Well, that will pose a problem for me. We have a tight deadline. I'll have to see what I can do to push out those deadlines or to find a work around. If I am able to come up with a workaround, what will you do to ease my pain?"

Printer: "I don't know…What if we run an extra 1000 copies at no cost?" (This "promise" could also be banked for future use).

9. Funny money

Sales person: "You've made a brilliant decision. Congratulations! I'll write up the lease. By the way, before I do, do you know that for a mere Ј3 per day you could get the deluxe model. It's really worth it. What do you think?"

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.

Purchaser: "If you give me the sole right to market your product we can talk, but only then."

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.