Archive for the ‘negotiation style’ Category

Negotiators Know That You Can Only Win By Taking The High Ground

Friday, October 21st, 2011
Image Credit
If you aren't on the high ground, then you're not going to reach a good deal

If you aren't on the high ground, then you're not going to reach a good deal

When it comes to how you want to conduct your next negotiation, there are an almost limitless number of ways to go about doing it. Some of them are above board and some of them are downright sneaky. I’m going to suggest that if you want to walk away from the negotiating table with a deal that both sides are going to feel good about, then you’re going to have to take the high ground…

What Is The “High Ground” And Why You Should Care

In order to reach the outcome of a negotiation that you want to, you need to be in the driver’s seat – you need to be controlling the direction that the negotiation takes. The challenge here is that the other side of the table will be trying to do exactly the same thing at the same time.

During the negotiation process, you will take positions and you will ask the other side to make concessions to you. As you might well expect, they are probably not going to be all that interested in making those concessions to you. Your negotiating skills will have to come into play as you attempt to convince them to adopt your views and make concessions.

This process can either be easy or hard to do. You can make it much easier on yourself if you choose at the outset of the negotiating session to take the high ground. This isn’t one of the negotiating techniques that we are talking about. Rather it’s more a part of an overall principled negotiation philosophy.

Taking the high ground during a negotiation means that instead of trying to bully or verbally overpower the other side of the table, instead you rely on solid evidence in the form of both logic and facts. It’s not all about you, rather the reason that the other side should adopt your viewpoint is because of the compelling evidence that shows that it really is the correct way to go.

How To Reach The High Ground

Realizing that the high ground is the correct way to go during a negotiation and then actually taking it are two completely different things. Any negotiation definition tells you that you are going to have conflict with the other side during the negotiation and staying on the high ground can be a difficult thing to do.

There are many negotiation styles that you can choose from when you are starting your next negotiation; however the following four components must always be included in what you do in order to allow you to keep the high ground:

  • Have A Solid Direction: You have got to know where you are going. Having a strong sense of where you want the negotiations to lead to is key to allowing you to retain the high ground.
  • Having History On Your Side: Do your homework before the negotiation and be able to point out how your positions are simply a continuation of what has been agreed to by the other side in the past.
  • Love That Logic: The nice thing about logic is that people can’t really argue with it. Take the time to think out your positions and then present them in a logical fashion to the other side.
  • Use Standards: If somebody else has established a standard then make sure that your proposal is supported by this standard and make sure that you tell the other side this.

What All Of This Means For You

Negotiating can be a tough job. As you enter a negotiation you need to make a decision about how you want to get to the end. There are a lot of different ways to get there, some are above board and a whole bunch are not.

Experienced negotiators know that sticking to the high ground is the best way to conduct a negotiation. Using solid backup material consisting of factual evidence and well-though out logic allows you to convince the other side of the table that you really are looking to strike a deal with them.

Negotiators can be tempted to forego the high ground if they find themselves in a rush – they just need to get a deal done quickly. However, it’s been proven time after time that if you don’t take the high ground during your negotiations, the deal that you negotiated won’t be one that either side will want to live with.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What do you think that you should do if your management doesn’t want to take the high ground?

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What We’ll Be Talking About Next Time

Negotiations can go on for a long time. When you start a negotiation, you probably have a pretty good idea of where you want to get to. The big question is does the other side of the table share this goal with you? Will they be able to remember this goal throughout the entire negotiation? Hmm, sounds rather iffy to me. Perhaps what you need are a set of guiding principles…

Both Win: How To Negotiate A Better Deal For Both Parties

Thursday, September 25th, 2008
The Cooperative Mode Of Negotiating Helps Create Both-Win Results

The Cooperative Mode Of Negotiating Helps Create Both-Win Results

The phrase “win-win” is looking pretty ragged along about now. How about if we talk about the much more meaningful “both win” strategy for negotiating?

The key to creating a successful both-win negotiation is to remember that at its heart, negotiation is all about sharing value between both parties. If it was as simple as that, we really wouldn’t need this blog! However, as human beings we often use one of two different approaches when we enter into a negotiation: competitive mode or cooperative mode. Can you guess which mode most of us enter a negotiation with?

When we are in the competitive mode, we focus on who is currently getting how much of the pie. When we are in the cooperative mode, we focus on trying to make the pie larger so that everyone will walk away with more. Clearly the cooperative mode is the route to creating a both-win deal for both parties.

So all of this discussion leads to the big discussion: how can we go about creating a both-win deal when we always seem to start out in competitive mode? The answer is that we need to start asking ourselves the right types of questions. Specifically, we need to ask the questions that will allow us to find out what things can be changed that will allow both sides of the table’s interests better. A good example of how to do this is when you start to talk about schedules for what you are negotiating. If you can either receive or deliver the thing that is being negotiated earlier, later, or maybe all at one time or even in parts then all of a sudden there is additional value to share with both parties.

One additional way to cause this shift in negotiating modes to occur is to find a way to communicate to the other side of the table that you really WANT to reach an agreement with them, not that you HAVE to. Doing this and helping them feel good about it will go a long way towards allowing you to reach your negotiating goals.

If you are able to shift the negotiation from the competitive mode to the cooperative mode, then you will have greatly improved your chances of reaching a negotiated agreement. It’s not always easy to do, but I think that you’ll find the results well worth the effort.

What mode do you start your negotiations in: competitive or cooperative? Do you try to shift modes during the negotiation? Have you ever been able to do this successfully? How did the negotiation turn out? Leave me a comment and let me know what you are thinking.

It’s Krunch Time!

Friday, August 22nd, 2008

The Krunch negotiating technique is used by buyers to get lower prices from sellers

What the heck is a Krunch? In a nutshell, it’s a negotiating technique that a buyer can use to squeeze a lower price / better terms out of someone who wants to sell them something. I’ve seen this technique used most often when I’ve been buying a house – it’s a classic. I guess that I should confess that I’ve also used it when I’ve been selling a house

How Does It Work?
Here’s how the Krunch technique works. The buyer has to have more than one person who wants to sell to them. When the buyer has collected prices from each of the sellers, then the buyer can go back to every one of them and tell them “Your price is to high, you can do better.” Generally speaking, each of the sellers ends up lowering their price.

Why Does It Work?
To understand why the simple Krunch technique works so well, you’ve got to look into the mind of the seller and see what goes on when the buyer tells them that their price is too high:

  • Yeah, I built some give into my pricing just in case this happened.
  • I knew that what I was selling was too expensive.
  • The buyer must have a lower price.
  • Hey! The buyer is talking with me so they must like me.
  • Oh, oh – does the buyer know something that I don’t?

What Are The Drawbacks To Using It?
It doen’t take a rocket scientist to realize that sellers who keep getting Krunch’ed will eventually start to build up defenses to it. Specifically, what you can expect them to do is:

  • Boost their prices because they know that they’ll be asked to lower them.
  • Reduce the quality of the product being offered because they know the price will be lower.
  • Drop some services that used to be given.

What Countermeasures Can You Use?
What good is knowing about a negotiating tactic if you don’t know how to defend yourself against it? Here are three things that you can do when someone tries the Krunch on you:

  • Defend or describe your value. It’s not all about price so take some time to tell the buyer about why your offer is better than anyone elses.
  • Ask them how much better you have to do. There’s no need to lower your price more than they are expecting you to.
  • Buy yourself some time by starting to respond by saying “Hmm…” This will buy you time and will make the buyer feel obligated to fill the blank space with an explanation as to why they want you to lower your price.

Hopefully you’ve learned to set your negotiating goals high enough so that you will achieve more than you ever dreamed possible. Now that you know how to deal with the Kurnch tactic, next time we’ll have to talk about the “nibble”…

When was the last time that someone tried the Krunch on you? Have you built up defenses against it? Have you ever used the Krunch on someone? How did things turn out? Leave a comment and let me know what you think.

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