Top Ten Negotiating Tactics By Jairo Guerrero

TOP TEN NEGOTIATING TACTICS

JAIRO ALBERTO GUERRERO

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April 16, 2020

TOP TEN NEGOTIATING TACTICS

Everyone uses negotiation tactics to get what they want, whether it be haggling over the price of an item in stock, or discussing the possible salary with a future employer, this process can be carried out fairly or with malicious intentions, therefore it is important to be able to differentiate between fair and unfair negotiating tactics in order to use the good ones in your favor and deflect the questionable ones.

Tactic #1: The Wince

The wince can be explained as any overt negative reaction to someone’s offer. And 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.

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 underhanded or dishonest

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 are waiting for a response, just sit back and wait. Most people feel awkward when the conversation stops, and they automatically start talking to fill the void. Almost without fail, your counterpart will begin to narrow their position when using this tactic.

So what if you find yourself negotiating with a person who understands the importance of silence as well as you do? Instead of wasting time quietly, repeat your offer. Don't make suggestions; just repeat your terms. This maneuver forces the other person to respond, and most of the time, they respond with a concession.

Example: A seller is offering shoes for $ 75,000, a lower price is sought, so simply keep quiet and wait for the same seller to feel uncomfortable and lower the price.

Tactic #3: The Good Guy/Bad Guy Routine

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.

This tactic is designed to get you to make concessions without the other side making any in return.

To evade this tactis, the best response is to ignore it. Recognize this game for what it is, don’t play along and don’t allow the good guy to influence your decision. Take care of your own interests

Example: the bad guy indicates that he is not going to make any discount, he prefers to lose the sale, while the good guy pleads in our favor, trying to convince us of his false help.

Tactic #4: Limited Authority:

This tactic is a variation on the good guy/bad guy routine, one person 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. Although the other person has used this tactic to force you into backing down, if you keep at him or her, you may get what you want.

Example: The seller indicates that he cannot make a discount since his boss does not allow it

Tactic #5: The Red Herring:

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.

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 to 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 plans.

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 financing the house yourself?” respond, “Well, if I did, what would your offer be?”

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?”

Tactic #7: Low-Balling:

LLow-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.

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 shipping or installation. In the end you 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

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 recognize it. If your counterpart were really able to offer a genuinely good deal, they wouldn’t have to resort to baitand-switch.

Example: The seller shows a very sophisticated car with a good price, but when he sees the negative, he shows another car, but with low capacities, this one resembles the price of the previous one, which suggests that it is better to buy the first car.

Tactic #9: Outrageous Behavior

Outrageous behavior can be categorized 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

The most effective response to outrageo us behavior is none at all. Just wait for the fit to die down before reacting, because emotional negotiations can result in disaster.

Example: A couple makes a big scandal to achieve a shirt at a low price, the seller feels uncomfortable with the situation, and therefore prefers to sell it at the minimum price to make them leave quickly

Tactic #10: The Written Word:

When terms of a deal are written out, they often seem non-negotiable.

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 when challenged..

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? You probably assumed these deals were non-negotiable, and for some reason most people make the same mistake of accepting terms that appear in writing.

REFERENCES

Dolan, J. P. (2017). How to Overcome the Top Ten Negotiating Tactics. American Salesman, 62(10), 11. Retrieved from http://bibliotecavirtual.unad.edu.co/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=125279851&lang=es&site=eds-live&scope=site

Triana Ortiz, K. (06,12,2018). Technologic Contracts. [OVA]. Recovered from: http://hdl.handle.net/10596/22751