Key negotiation tactics that work
No matter if you are “just” negotiating a rise or if negotiations are part of your daily business, there are facts and tools you need to know to make negotiation work in your favour.
Most successful negotiators recognise that the way people involved in negotiations behave does not always reflect their true feelings or intentions. We are going to look at negotiating tactics that may be used by you or on you. Whether or not you choose to use these tactics, it is vital to understand 3 things:
- These tactics work
- They can be being used on you, and can be used by you
- Once they are recognised as tactics, their effects are reduced, or eliminated
You may feel that there is no need in your particular case to negotiate or resort to `tactics’ in negotiation. This is a matter of personal choice. In general, tactics are used to gain a short-term advantage during the negotiation and are designed to lower your expectations of reaching a successful conclusion.
There are many tactics available to negotiators. Let’s take a look at some of them.
The use of higher authority
This can be a most effective way to reduce pressure in the negotiation by introducing an unseen third party and can also be effective in bringing the negotiation to a close. I need to have this agreed by my Board of Directors. If they agree to the terms we have discussed, do we have a deal? Be careful to use this device sparingly so that the other side does not begin to feel you have no decision-making authority yourself.
One way of countering this tactic is to say before the bargaining begins If this proposal meets your needs, is there any reason you would not give me your decision today? If the other side still wishes to resort to higher authority appeal to their ego by saying Of course, they will go along with your recommendations, won’t they? Will you be recommending this proposal?
The use of silence
During the negotiation, you may make a proposal and find the other party remains silent. This can be very difficult to handle and often signals `disapproval’ to the inexperienced negotiator. Just as nature abhors a vacuum, so silence induces the need in people to talk.
If you have a proposal to make, make it and ask the other side how he, or she feels about it. Having asked the question, sit back and wait for the answer. Whatever you do, don’t change your offer as this could seriously weaken your position.
The vice
A common technique used by negotiators when presented with a proposal is to say You’ll have to do better than that. This can be a very powerful statement, especially when used with broken record.
The most powerful way of dealing with this is to ask them to be more specific. Whatever you do, don’t weaken your negotiating position in response to the vice by giving anything away, too easily. This will only encourage repeat behaviour.
The power of legitimacy
People believe what they see in writing. We all assume that if a thing is printed or written down, it is non-negotiable. This is what can make price lists so powerful. If you have to present a customer with a price increase or you wish to encourage an early order to beat a price increase, show something in writing such as an office memo from your boss announcing the increase. This will have a far greater impact than just saying your prices are about to go up.
When presented with a price tag in a shop, ask to speak to the manager and make him an offer. You could be surprised at the results.
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
Finally, keep in mind to review how you negotiate with people. Realise that everyone is different and to negotiate successfully we need a flexible approach to all our counterparts.