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As we have been discussing, the fundamental negotiation tactics must be memorized so you not only learn their applications, but also how to deflect a tactic when it is used against you. Here are the final three fundamental tactics:

10. NIBBLING
Additions to agreement at the conclusion of the deal

After the principal agreement is almost complete you hear, “Oh, by the way…” or “This will include______, won’t it?” Your counterpart realizes that, out of fear, you have come so far and you don’t want the deal to fall apart. You are at your most vulnerable state and may be willing to offer added concessions.

COUNTER TACTIC TO NIBBLING:
• Say, “You’ve been grinding on me all day, you’re not going to insult me by asking for more, are you?”
• You have successfully negotiated to the bottom line, and there’s no more room.
• Use the Trade Off.

11. THE TRADE OFF
If I do that for you, what will you do for me?

Any time you make a concession, ask for one in return. This will elevate the value of the concession, and trading off stops the grinding away process. Your counterpart will eventually realize if he constantly keeps asking you for concessions, you will constantly keep asking him for concessions.

12. IN WRITING
Learn to negotiate on paper.
Don’t think it; ink it. Delegate to document, and when negotiating present any key benefits, warranties, and assurances in writing. People naturally believe the written word over the spoken word.

COUNTER TACTIC TO IN WRITING:
Ask, “Where did that information come from?”

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As we have been discussing, the fundamental negotiation tactics must be memorized so you not only learn their applications, but also how to deflect a tactic when it is used against you. Here are the next three fundamental tactics:

7. FUNNY MONEY
Reducing price over an extended period of time to make the cost appear minimal and ridiculous

The counterpart says, “Our product has a useful life of ten years so that’s only fifty cents a day. You’re not going to let fifty cents a day stand between what you really want and deserve, are you?”

COUNTER TACTIC TO FUNNY MONEY:
Multiply the aggregate over the period of time. Fifty cents per day over ten years is $1,825. Suddenly fifty cents per day is not a minuscule and ridiculous figure.

8. THE VISE
A tactic designed to clamp you in a seemingly immovable position.

There are three approaches with The Vise:

A. “You’ll have to do better than that.”
The rule with negotiation is whoever states his position first, normally loses. Rather than saying what he is willing to pay, the counterpart will get you to make a concession to see how far you are willing to go. Then he will respond with the wince, which will lead to another concession. COUNTER TACTIC: Respond, “How much better would that have to be?” (You get him to state his position, and then you wince.)

B. “Split the Difference.”
When you are asked to split the difference, assume that if you have the counterpart to the point where she is willing to split the difference, she will go further.
COUNTER TACTIC: “What a shame we’ve come this far.” Employ the walk away and revert to higher authority, which will allow you to re-initiate a new negotiation with the Good Guy/Bad Guy tactic.

C. “This is a Limited Offer.”
Never negotiate in haste. Successful negotiators realize there are no concrete deadlines.
COUNTER TACTIC: “If I have to make a decision now, then my answer is NO. However, if you can give me a bit more time, my answer may be YES.”

9. THE TRIAL BALLOON
Presenting a hypothetical situation or solution to a challenge.

With this tactic the counterpart issues a hypothetical situation to see if he can get you to change your position. Trial Balloons are preceded by the following statements: “Just suppose…I’m not certain…I may be talking out of school…I probably shouldn’t mention this but what if I could…”

COUNTER TACTIC TO TRIAL BALLOON:
If the counterpart issues a Trail Balloon, she is stating preplanned concessions. She has not reached her final position yet.

Check Back to learn more fundamental tactics of Negotiation…

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As we have been discussing, the fundamental negotiation tactics must be memorized so you not only learn their applications, but also how to deflect a tactic when it is used against you. Here are the next three fundamental tactics:

4. GOOD GUY, BAD GUY
A team tactic featuring a friend and an adversary

With this tactic you have one team member who displays outrageous behavior toward the situation while the other party seems to remain neutral. After the Bad Guy displays outrageous behavior, the Good Guy steps in and woos you into believing he is on your side. Beware of the counterpart who suggests to you, “I’m on your side, or I am working for you.” Suddenly you have someone negotiating for you who isn’t really on your side at all.

COUNTER TACTICS TO GOOD GUY, BAD GUY:

• Ask: “You’re NOT going to play Good Guy/Bad Guy, are you?”
• Ask: “Can you do this without (Bad Guy)?” If they are unable to help you themselves, then take a time-out until the person in authority is available.
• Dismiss the Good Guy, and only deal with the person who is in authority.

5. RED HERRING
A false trail, leading away from the true issue

The Red Herring derives its name from the sport of fox hunting. Hunters participating unfairly would drag a dead fish across the path of the fox, diverting the dogs and sending them down a false trail. Skilled negotiators lead the unskilled away from the main issue by making a big deal out of insignificant issues.

COUNTER TACTICS TO THE RED HERRING:
• Employ the set-aside tactic. Say to the counter party, “This seems to be a major issue. Why don’t we set this aside and establish agreement on the minor issues, then come back to this later?”

• If there is hesitancy by the counterpart to set the issue aside ask, “Is this issue your only concern? Since you agree there are other issues, I promise we can reach a mutually beneficial resolution if we come back to this later, after we have come to an agreement on a few of the minor issues.”

6. LIMITED AUTHORITY
A final agreement cannot be reached without a third party approval

Limited authority can be used twice in the negotiation process. In the beginning, when your counterpart may reveal he is in an information gathering stage and does not have the complete authority to render the final decision, and at the end. Limited Authority is more often used at the end of the negotiation. You have given the price or terms and it seems agreement has been reached until the counterpart says: “I need to run this by the committee, boss, wife, attorney, etc.”

COUNTER TACTICS TO LIMITED AUTHORITY:
• Rescheduling until all parties are available.
• Gaining commitment by saying, “I understand, but you will recommend they accept, won’t you?” or “You can’t make this kind of decision?”

With Limited Authority as the negotiating tactic, the counterpart will now take your offer to the “nonexistent” committee and play good guy, bad guy. He’ll then return and say, “I’m so embarrassed. I felt certain they would go along, and if it were up to me, I would accept. But, this is all they would agree to.” He now remains silent, waiting for a concession. COUNTER by withdrawing the offer. “Don’t be embarrassed. I’m relieved. After consideration, I’ve discovered it would be impossible to honor my original agreement.” The other party will now defend his original agreement and you can play reluctant seller.

Check back soon for more fundamental tactics of negotiation…