Sue Waddington's HOT negotiating tips
Everyone uses negotiation tactics to get what they want, whether they're haggling over the price of an item in a car-boot sale or discussing potential salary with a future employer. Most of the time, when you enter a negotiating situation you can expect the other party to use certain manoeuvres to tip the scales in their favour. For example, you can expect a potential employer to offer you less money than they are actually willing to pay to give themselves negotiating room. And a buyer will usually act surprised at your stated price, no matter how reasonable it may be, to pressure you into lowering it.
Everyone uses these tactics, but that doesn't mean that negotiations can't be fair. Some tactics are acceptable, while others are downright sleazy. Tactics are part of the process, and you can use them and still maintain your negotiations on an honest level. In other words, the use of tactics doesn't necessarily mean tricking or manipulating people. Some tactics are simply tools to expedite the negotiation process; others are used to take advantage of the other person. To be successful in sales and business, you must be able to differentiate between the fair and unfair negotiation tactics so you can use the good ones to your advantage and deflect the questionable ones. Consider the following ten negotiation tactics and how to deflect them.
Tactic #1: The Wince The wince can be explained as any overt negative reaction to someone's offer. For example, you might act stunned or surprised when your negotiating counterpart names their terms. This tactic tells your counterpart that you know your limits, which isn't underhand or dishonest. And wincing at the right time can potentially save you thousands of pounds. 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 In the negotiation process, silence can be your 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 automatically to fill the void. Almost without fail, your counterpart will start whittling away his or her position when you use this tactic.
So what if you find yourself negotiating with a person who understands the importance of silence as well as you? Rather than wasting time in silence, restate your offer. Don't make suggestions; just repeat your terms. This manoeuvre forces the other person to respond, and more often than not they respond with a concession.
Tactic #3: Good Guy/Bad Guy This sleazy tactic is often used in movies, where two detectives are interrogating a person who's just been arrested. One detective seems unreasonable and inflexible, while the other tries to make it look like he or she is on the suspect's side. If you find yourself in a good guy/bad guy situation, the best response is to ignore it. Recognise this game for what it is, but don't play along and don't allow the good guy to influence your decision.
Tactic #4: Limited Authority This tactic is a variation on the good guy/bad guy routine, but instead of two people working over you, the one 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 other times your counterpart will create this figure to gain an edge in the negotiation process. So just because your counterpart tells you "It's out of my hands" don't automatically assume the person is being honest. In this type of situation, two options exist: one, ask to deal directly with this so-called higher authority or, two, test the limits of your counterpart. You may find that the other person has used this tactic to force you into backing down.
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. Effective and ethical negotiators generally agree that this tactic is the sleaziest of them all.
Tactic #6: The Trial Balloon Trial balloons are questions designed to assess your negotiating counterpart's position without giving any clues about your 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, and the nice part about them is 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, resist this temptation and counter with another question. For example, if someone asks, "Would you consider paying cash?" 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 necessities.
For example, say you see an ad for a product priced lower than other stores. But then, after you agree to buy, the sales representative uncovers the hidden costs, such as delivery or installation. In the end, you probably pay more than you would have at another shop 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 Similar to low-balling, the bait-and-switch tactic should be avoided. Your counterpart may try to attract your interests with one great offer, but then hook you with another mediocre one. This tactic will almost always burn you, unless you can recognise it. If your counterpart were really able to offer a genuinely good deal, they wouldn't have to resort to bait-and-switch.
Tactic #9: Outrageous Behaviour Outrageous behaviour can be categorised as any form of socially unacceptable conduct intended to force the other side to make a move, such as throwing a fit of anger or bursting into tears. As most people feel uncomfortable in these situations, they may reduce their negotiating terms just to avoid them.
Tactic #10: The Written Word When terms of a deal are written out, they often seem non-negotiable. For example, when was the last time you negotiated a lease, or a loan, or even a service contract that was typed up in advance in an official-looking document?
The best defence against this tactic is simply to question everything, whether it appears in writing or not.
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