by John Patrick Dolan
There are certain time-honored tactics that people use to tip the scales in their favor during a negotiation, whether it’s haggling at a garage sale or during a high-level merger. For example, a potential employer may offer you less money than they are actually willing to pay, to give themselves negotiating room. And a buyer will usually act surprised at the seller’s first stated price — no matter how reasonable it may be — to pressure the person into negotiating.
Some negotiation tactics are acceptable, while others are downright sleazy. To be successful in sales and business, you must be able to differentiate between what’s fair and unfair. You can learn how to use the good tactics to your advantage while deflecting the questionable ones.
Here are ten common negotiation tactics, along with advice on how to deal effectively with each.
Tactic #1: The Wince
This is any overt negative reaction to an offer. For example, you might act stunned or surprised when your negotiating counterpart names his terms. Wincing at the right time can potentially save you thousands of dollars. Keep in mind that when deals are negotiable, your counterpart will start high. Of course, you won't always be the wincer. Many times, especially in the sales profession, you'll be on the receiving end of the wince. In this case, you can counter with the next tactic.
Tactic #2: Silence
When negotiating, silence can be a negotiator’s strongest tool. If you don't like what your counterpart has said, or if you've made an offer and you're waiting for a response, just sit back and wait. Most people feel uncomfortable when conversation ceases and they start talking to fill the void. Almost without fail, your counterpart will start whittling away his or her position when you use this tactic. What do you do if your opponent uses this tactic with you? Simply restate your offer. Don't make suggestions; just repeat your terms. This maneuver forces the other person to respond, and more often than not, they respond with a concession.
Tactic #3: The Good Guy/Bad Guy Routine
In the movies, it’s called “good cop/bad cop.” One detective seems unreasonable and inflexible, while the other acts like he or she is on the suspect’s side. This tactic is designed to get you to make concessions without the other side making any in return. If you find yourself in a good guy/bad guy situation, the best response is to ignore it. Recognize this game for what it is, but don't play along and don't allow the good guy to influence your decision. Let your counterparts play their game, while you stay focused on your own interests.
Tactic #4: Limited Authority
This is a variation on the good guy/bad guy routine, but instead of two people working you over, the person you're dealing with tells you that he or she must approve any deals with an unseen higher authority. Sometimes this higher authority exists, but often your counterpart will create this figure to gain an edge in the negotiation process. If your counterpart tells you, "It’s out of my hands," don't automatically assume the person is being honest. You have two options: ask to deal directly with this so-called higher authority or test your counterpart’s limits. You may find that although the other person has used this tactic to force you into backing down, if you stand firm, you may get what you want.
Tactic #5: The Red Herring
This technique comes from fox hunting competitions, where one team drags a dead fish across the fox’s path to distract the other team’s dogs. At the bargaining table, a red herring means one side brings up a minor point to distract the other side from the main issue. Ethical negotiators generally agree that this tactic is the sleaziest of them all. When your negotiation process is bogged down with a minor problem, and your counterpart insists on settling it before they'll even talk about more important issues, then you are probably dealing with a red herring. In this case, use extreme caution, and suggest setting the issue aside temporarily so that you can work out other details.
Tactic #6: The Trial Balloon
Trial balloons are questions designed to assess your negotiating counterpart’s position without giving any clues about your own plans. For example, you may ask your counterpart, “Would you consider trying our services on a temporary basis?” or “Have you considered our other service plans?” Essentially, these types of questions put the ball in your counterpart’s court. The nice part about them is that they aren't really offers; they allow you to gain information without making a commitment. When you're on the receiving end of a trial balloon question, you may feel compelled to answer it thoroughly. To maintain your edge, instead, counter with another question. For example, if someone asks, “Would you consider financing the house yourself?” respond, “Well, if I did, what would your offer be?”
Tactic #7: Low-Balling
Low-balling is the opposite of the trial balloon. Instead of tempting you to make the first offer, your counterpart will open the process with a fantastic offer. Then after you agree, they start hitting you with additional costs. For example, say you see an ad for a product priced lower than in other stores. After you agree to buy, the sales rep uncovers the hidden costs, such as shipping or installation. In the end, you’ll probably pay more than you would have at another store listing a higher price on the product. To avoid falling victim to this tactic, ask your counterpart about additional costs before agreeing to any deal.
Tactic #8: The Bait-and-Switch
Your counterpart will try to attract your interest with one great offer, but then hook you with another, mediocre one. This tactic will almost always burn you, unless you can recognize it. If your counterpart were really able to offer a genuinely good deal, he wouldn't have to resort to bait-and-switch.
Tactic #9: Outrageous Behavior
This involves any form of socially unacceptable conduct — such as throwing a fit or bursting into tears—that is intended to force the other side to make a move. Since most people feel uncomfortable in these situations, they may agree to terms just to escape. The most effective response to outrageous behavior is none at all. Simply wait for the fit to end before reacting, because emotional negotiations can result in disaster.
Tactic #10: The Written Word
The terms of a deal might appear to be non-negotiable once they are put down in writing. However, that’s just not true. The best defense against this tactic is simply to question everything, whether it appears in writing or not. You'll inevitably run into some standard, non-negotiable documents, but it never hurts to ask questions. You may be surprised how many contracts actually are negotiable, once challenged.
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Author Bio: John Patrick Dolan is a member of the National Speakers Association Speakers Hall of Fame and author of the best-selling book Negotiate Like the Pros. Contact him at negotiatelikethepros.jpd@gte.net or 1-888-830-2620. Or visit his Website www.negotiatelikethepros.com.
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