Negotiating Tactics Can Give You an Edge

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"You can negotiate anything," suggests Herb Cohen, author and expert on negotiating skills. Agreed - provided you know the rules of the negotiating game. Unfortunately, many negotiators do not, and they lose money - often big money for their companies every day.

To be a successful negotiator you need many skills, including an understanding of the tactics commonly used by other negotiators. Tactics are actions that you can take to produce movement in a negotiation. Even if you don't intend to use a tactic, you need to know what it is to protect yourself when it is being used against you.

Some commonly used tactics are:

Make them work for it:

Don't give in too easily. If you are purchasing computer equipment for your area and the salesperson quickly takes your first offer, how do you feel? Usually you feel that you left money on the table. The negotiator has just robbed you of your feeling of satisfaction with the deal. When you are negotiating, make the other side work for the concessions that you give. This is necessary for them to feel that they got a good deal.

Nibbling:

After the deal is struck and before the agreements are signed, tack on one last request. Because the negotiations are at a very delicate point, the other party will often give in rather than risk losing the deal. For example, you have just reached an agreement on the purchase of a new copy machine for your department. Just before signing off on the deal you say, "And you will throw in the first six months' service free, won't you?"

Silence:

Make silence work for you, not against you. Once you have stated your offer, stop talking and wait for the other side to respond. Even though you may be uncomfortable with a long pause, resist the temptation to say anything. If you do start talking, you will likely be bidding against yourself.

Flinch:

Overreact when you hear the other side's offer. "Twenty-four thousand dollars? You've got to be kidding!" This exaggerated response puts the other side on the defensive and can make them question if their offer is out of line. They may then step forth with some concessions. On the other hand, if they don't see a physical reaction, they may tack on other conditions.

Leapfrog:

Jump over an item that you are stuck on and move to the other items that need to be negotiated. For example, let's say that you have six items to negotiate and price is one of them. You begin negotiating the price and get stuck. Suggest to the other side that you move on to the remaining items and then come back to the price. By the time you return, the other side will have "sunk costs" of time and energy invested in the negotiation. They are more likely to stay with the negotiation and come to an agreement.

You have to do better:

The other side makes an offer and you respond, "You have to do better." This often causes the other party to sweeten the deal. If the tactic is used on you, counter by asking, "How much better do I have to do?"

Your successful negotiations may be your greatest contribution to your organization. By knowing and using negotiating tactics, you can gain a competitive edge.