Negotiating tactics
Negotiation consists of 4 stages:
- Prepare: what do we want?
- Discuss: what do they want?
- Propose: what could we trade
- Bargain: what will we trade?
The last 3 stages unfold across the negotiating table, but the first one always happens in advance.
You need to be well prepared to ensure maximum productivity;
- know what you want from the negotiation (the goal)
- how you’re going to achieve it (tactics).
I firmly believe that the success or failure of your negotiation is determined long before you walk into the room and start talking!
Let’s consider some of the negotiation tactics available to you:
Wheat and chaff
One party loads their demands with chaff (low priority items, which they pretend are a high priority for them), which they intend to concede later in exchange for the wheat (the true high priority items, what they really want from the negotiation).
Salami
Salami is sold in thin slices, so in the negotiation you get what you want little by little.
Competition
Make the other party aware that you have other proposals to consider from third parties. So, if we can’t do a deal with you…
The wooden leg
During the negotiation, one party indicates that they are suffering from a limitation or constraint that makes further movement impossible, for example “The price is non-negotiable. We can’t move on that”.
Boredom
Use your body language and demeanour to indicate that the other party is failing to impress you.
Delay or stalling
The other party will have a deadline, so if you can find out what theirs is, or create one for them, you gain the advantage. If you know that they have to reach an agreement today, then suggest ending the meeting as you need to do some research, but you’d be very happy to meet again next week?
Walking out
A tactic designed to show that you have reached your absolute limit; a point beyond which you cannot go because the deal is not worth doing for you or your organisation. Before you begin negotiating, you should establish your WAP (walking away point). It acts as a safety net. If you are buying, it sets the highest price you are able to pay – you cannot go above it, you simply don’t have the funds. If selling, it represents the lowest price you are prepared to accept. Below it, the deal is not worth doing. We do not negotiate at any cost. If you do walk out, make sure you have alternative parties to negotiate with (see Competition).
Limited authority
This tactic allows one party to stall the negotiation, buy some time, or to say no without causing offence. If the other party is trying to push you beyond your WAP, just tell them that you don’t have the authority to make that decision. Sorry!
The Russian front
This involves putting forward 2 proposals, one with much worse consequences than the other. The title originates from World War 2, when it was used to motivate German soldiers, i.e. “I’ll go anywhere, but please don’t send me to the Russian front!”
The nibble
One party throws in a final demand just as agreement is in sight. They are banking on the other party giving the concession away cheaply to avoid rocking the boat at such a late stage.
Conclusion
If we are well prepared for a negotiation, then the rest of the process should be more efficient and straightforward. Before you sit down at the table, be clear about your goal then select and apply the right tactics in order to achieve it. Which of these tactics do you think could make the difference to your next strategic negotiation?
