RETAIN YOUR RESORT TO
HIGHER AUTHORITY
Don't let the other side know that you can make a decision
in the negotiation. Tell them that you have a higher authority
that has to approve the final deal. You can put a lot of pressure
on the other side without creating confrontation by
blaming your higher authority. "I can never sell this to my
people at this price. You'll have to give me a better price."
Danger Point: Don't make your higher authority an individual,
because the other side will want to go around you to
deal directly with the decision maker.
Solution: Make your higher authority a vague entity such
as a committee or board of directors. That makes the higher
authority appear unapproachable.
BRACKET YOUR OBJECTIVE
Assume that you will end up midway between the two
opening negotiating positions. It's not always true that
you'll end up at the midpoint, but it's a very good assumption
to make.
Danger Point: You have made the first offer. They bracket
your proposal, and when you end up in the middle, they
get what they want.
Solution: Get them to go first. Any suggestion that you
should make them a better offer should be met with: "If you'll
make a proposal to us, I'd be happy to take it to my people
and see what I can do for you with them."
OPTIONS GIVE YOU POWER
This principle underlies all power in a negotiation. The
side that has the most options has the most power. Work to
let the other side know that you have options. Limit their
perception of options by positioning yourself as different
from your competitors.
Danger Point: You have fallen in love with the car, house,
or job opportunity for which you are negotiating. The other
side can sense that you have few or no options.
Solution: Work to develop options before you go into the
negotiation.
USE THE VISE TECHNIQUE
Listen carefully to the seller's proposal and then say, "I'm
sorry, you'll have to do better than that." Then be quiet! The
next person to talk, loses. The next person to open his or her
mouth will make a concession.
Danger Point: Buyers may use this on you.
Solution: Reply with the counter-tactic "Exactly how
much better than that do I have to do?" Pin them down to a
specific.
FLINCH AT THE OTHER SIDE'S PROPOSAL
This is the number one mistake that poor negotiators
make. They don't flinch at the other side's proposal. Always
react with shock and surprise that they would have the
nerve to ask you for a concession.
Danger Point: The other side often makes a proposal to
you that they really don't expect you to agree to. When you
don't flinch, they start believing that they could get it from
you. It makes them tougher negotiators.
Solution: Practice your flinches before you go into a negotiation.
A concession often follows a flinch.
DON'T LET OTHER PEOPLE GIVE
YOU THEIR PROBLEMS
International negotiators will tell you that when the other
side tries to give you what is essentially their problem, you
must test for validity right away.
Danger Point: They tell you, "We just don't have that
much in the budget."
Solution: Test for validity. Ask them, "Who has the authority
to exceed the budget?"
NEVER OFFER TO SPLIT THE DIFFERENCE
Instead, try to get the other side to offer to split the difference.
"How far apart on this are we? We're not that far apart.
There must be some middle ground on which we can both
agree." When the other side offers to split the difference,
you can reluctantly agree to their proposal, which services
their perception that they won.
Danger Point: If you offer to split the difference, they
could get you to split the difference again.
Solution: Get the other side to offer to split the difference.
You may then be able to get them to split the difference again.
Even if you don't, you still make them feel that they won.
Learn more about Roger Dawson and his bestselling
audio program The Secrets of Power Negotiating.