The low key approach

Don’t appear too enthusiastic during negotiations. Over-enthusiasm during negotiations can encourage skilled negotiators to review their strategy and demand more.

If you are in a negotiation and the other side is not responding to your proposal, recognise this could be a tactic and avoid giving concessions just to cheer them up. Salespeople like to be liked and will often give money away in a negotiation, if the other side appears unhappy.

For example, if you are buying a car avoid saying to the seller things like:

This is exactly what I.m looking for. I really like the alloy wheels.

Develop a low-key approach. Say things like:

Well, it may not be exactly what I.m looking for but I may be interested if the price is right

Negotiation Strategy

Negotiation strategy is a topic that elicits enthusiastic debate in most forums. Most organisations and individuals approach negotiations in a manner that can be best described as ad hoc. Often times the “negotiation strategy” is discussed briefly in the car or on the train on the way to the meeting.

In the competitive environment that organisations and individuals find themselves in the present day, it is necessary to approach the topic of negotiation strategy far more seriously. Firstly, we should investigate our negotiation strategy at the highest level of abstraction i.e. at the corporate level. If we want to reduce variance in the way that we deal with customers, suppliers and other key stakeholders it follows that we should define a negotiation strategy that sets a framework against which the organisation can measure itself. Any negotiation strategy should answer the questions why, what, who and how?

Examples of why may be because we have a need to increase the margins on new business or reduce the purchasing budget.

Examples of what may be that we will not extend discounts in excess of 10%, we will not make any concessions without a counter concession and so forth.

An example of who may be to ensure compliance to the strategy by all our customer/supplier facing teams.

Finally, an example of how may be that we will ensure a formal strategy is compiled, a process is derived from this strategy, and all our negotiators will be adequately trained & equipped with tools to ensure compliance.

It is always interesting to take a look at some of the ways negotiators go about their business. Before reading through some of the content that follows, it is important to note that it is regarded as of the utmost importance to use all methods of persuasion honestly and not with the sole purpose of benefiting yourself at the cost of others.

It is important to use all methods of persuasion and influence ethically. The use of these methods should create something of value to both sides in any interaction.

1. The Nibble is a favourite technique used by sales people. Immediately, when a deal is concluded, they add additional cost items, e.g.

Sales person: "So with all the features the price is Ј 19 59?"

Customer: "That's very good. It's better than I thought."

Sales person: "Naturally, we need to add delivery at Ј50 and an installation fee of Ј100."

Because people become less stressed once a deal is made, the sales person has an excellent chance of succeeding with add-ons (kids are masters at this play). Think of a car sales person who, after the decision is made to buy the car, suggests that a sun roof, alloy wheels etc. could be added for a few extra pounds per month.

The customer can counter this by responding to the sales person's initial statement with: "Thanks, I'll take it. Of course this includes delivery and installation, does it not?"

Sales person: "Well no, it doesn't, but I suppose we could arrange it."

The customer has a moment of power because the sales person is psychologically at his weakest directly after the deal is made, as he does not wish to see his hard work undone. By nibbling you can get a little more after the basic deal is clinched.

To counter the customer ploy, the salesman could have responded with:"Come on, you have got yourself a great deal. Be fair please."

To this the customer could then have responded: "Well I suppose we start all over again, do we?" This "tit-for-tat" style of negotiating often make people uncomfortable, as they do not want any hassles when they want something and just simply buy the product in good faith, regardless of the "ploys" that salespeople may be using.