<-- Resources

Negotiation

Concepts

1. forever for now. p108. mind may change a few minutes later. truth shifts. moves around.
2. time is money. p116. the more time you invest in the negotiation, the better you come out.

Buyer tactics

The buyer wants to get the best possible product at the lowest possible price.

They appear as nonnegotiable issues, but they rarely are.

• bogey. seductive. p95. Price is X but I only have Y. Counter: Don’t accept it as unchangeable or true forever. Alternatives can emerge if you persist. Half now, half later could work. Changing the product could work.
• krunch. seductive. p98. “You’ve got to do better than that.” “You’re close.” Buyer plays on the seller’s lack of confidence in their prices, and helps them go back to their own organization for a lower price. Example: “You’ve got to do significantly better than that.”
• take it or leave it. nonseductive. p101.
• good-guy-bad-guy. p189. Counter: Just sit and listen. Don’t compare the demands of the good guy to the bad guy. Why does it work? Reduces aspiration level and makes the good guy look inviting. Then you’re agreeing to tough terms that don’t sound like it.
• what if. p192. Used to get information about the selling organization. Be cautious: You’ll give away more info than you should. Counter: Don’t answer quickly, and answer carefully. Take time. Tell them you’ll have to get back to them. Consult with others. Probe to find out what the buyer really needs. It can work in the seller’s favor if the order goes larger or has better terms.
• lost memos, exposed notes, forgotten briefcases. p194. Used in business, diplomacy, politics. For sellers: Beware when buyers leave the room. You might be falling into a trap with planted information.
• lowballing. p196. Promises of big future orders that never come. Easy spec jobs that increase in complexity later. Payment terms change. They lock you up then make more and more demands. Counter: Seller should determine what real needs are. “Talk doesn’t cook rice” (Chinese proverb).
• fait accompli. accomplished fact. a thing that has already happened or been decided before those affected hear about it, leaving them with no option but to accept it. p197. Something done is usually difficult to undo. If the deal is for $900 and you get sent $860, do you send the check back?
• reverse auction. p198. Buyer uses the first set of bids to learn more about what they’re buying, heighten the competitive pressure on the vendors, and end up with a lower price. Counter: Refuse to take part; arrange to be the last seller; bring the most knowledgeable person in your organization with you; have a bottom line. Prepare as much as you can. Try to change the deadline: buyer might mention other appointments.
• escalating authority. p202. Counter: Make sure you’re negotiating with a person who has the authority to make the deal. Avoid playing all your cards at once.

Seller tactics

Satisfaction is a tricky thing. Feelings of satisfaction may often depend more on how you got the price than they do on the price itself. You have to recognize the tactics as tactics before you can deal with them. Sellers often assume the buyer knows exactly what he wants and needs no help in making his decision. The opposite is often true. Sincerely helping the buyer means you learn more about the buyer.

• escalation. p105. “Price is now X [higher].” Bogey can counter it.
• nibbling. p109. Push for something extra, something more. Doesn’t mean the buyer won’t do business.
• always say no one more time before saying yes. p133. Tied into both parties feeling satisfied at the end of the deal.

References

Karrass, Gary. Negotiate to Close. New York: Simon & Schuster, Inc., 1985.