Archive for the ‘tactic’ Category

Negotiators Know The Power Of Not Making Up Your Mind

Friday, August 12th, 2011
Image Credit Knowing Which Way To Go During A Negotiation Is Not Always Necessary

Knowing Which Way To Go During A Negotiation Is Not Always Necessary

I hate to negotiate with people who don’t know how to negotiate. Knowing this you might think that I’m always expecting the other side to be on top of things, know what they want and have a plan on how they are going to get there. It turns out that you’d be wrong – sometimes not being able to make up your mind is more powerful than knowing where you are going.

The Power Of Not Knowing

The concept of not knowing what you want to do or where you want to go seems to go against the grain of how we like to picture ourselves as negotiators. Instead, we like to see ourselves as bold and confident – knowing where we’re going to go even before we get there.

However, what we forget is that every sales negotiation is a stressful situation. Any decisions that we make during a negotiation are decisions that we’ll be making under pressure – and all too often those types of decisions are bad decisions.

A lot of people don’t realize just how much effort goes into not making your mind up. It’s actually quite easy to focus on one path of action. Not selecting where you want to go is much harder.

How To Use Indecision To Your Advantage

So maybe not being able to make up your mind is a good thing? In some ways the answer to this question is yes, it can put you into a more powerful position when you are negotiating.

One of the biggest benefits of not being able to make up your mind during a negotiation is that you are in no position to reach a deal. This means that if the other side wants to settle quickly, then they are going to have to be the ones who make concessions to move both sides close to close.

This also means that you get to control the flow of time. You cannot make up your mind for as long as you want to – you’re in charge of that. This can end up frustrating the other side of the table and once again this may lead them to making even more concessions just because they want the negotiations to be over and done with!

What All Of This Means For You

One of the big secrets that most negotiators who are just starting out don’t realize is that a bit of indecision can be a powerful tool during a negotiation. You’d think that knowing exactly what you want to be doing and where you want the negotiations to be heading would be necessary, but it isn’t.

The power that comes from being indecisive comes from the simple fact that you can’t reach a deal with the other side because you don’t really know what you want. This means that the other side can’t force you to do something that you don’t want to – you don’t know enough to make a mistake. This is going to result in the other side making more concessions to you just to keep things moving along.

Despite what your mother may have told you while you were growing up, the brightest people don’t always finish first. Sometimes when we don’t know what we want to do we can end up coming out ahead!

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

Question For You: How do you think that you can make yourself remain indecisive during a sales negotiation?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

Talk about running into a brick wall! Sometimes when we are in the middle of a negotiation, especially with a state or federal official, we come face to face with a regulation that prevents us from getting what we want. Is it time to give up? Nope, you just need to know the magic 6 words that you need to say…

Sales Negotiators Need To Know How To Wait

Friday, May 27th, 2011
Image Credit
Time Is Often On The Side Of The Buyer In A Negotiation

Time Is Often On The Side Of The Buyer In A Negotiation

When we start a sales negotiation, we have certain expectations about how it’s going to go. If we’re selling something, then we believe that the other side will state what they are interested in buying, we’ll have some discussions and we’ll eventually provide them with a proposal. We then expect them to react to the proposal and that’s when the real negotiating starts. However, what happens if they don’t react at all…?

The “Hurry Up And Wait” Tactic

As negotiating tactics go, the “hurry up and wait” tactic is actually pretty simple. The basic idea is that the side of the table that is doing the buying takes over control of the pace of the negotiations. Once they do that, they are now in the driver’s seat.

The selling side of the table has certain expectations in regards to what the next step in the negotiating process is and when that step will occur. When the seller takes control of the pace of the negotiations, they can change the tempo and this will cause distress for the seller.

A common way to employ the “hurry up and wait” tactic is to start the negotiations with an air of immediacy. Everything is rush, rush, rush. Discussions are held, requirements are gathered, and finally a proposal is made. Then nothing.

As the seller side of the table sits and waits for the next step in the process to occur (a response to their proposal), they will start to grow more anxious as nothing happens. The amount of time that is passing and the lack of feedback will serve to make them doubt that their proposal was a good proposal – especially if there are other sellers involved in the negotiations.

When the buyer side finally starts the negotiations up again, the seller side will be so grateful for any communications that they will be willing to make concessions in order to keep the negotiating process going.

This start-stop-start process can be used by the buyer side over and over again. As time stretches on, the seller side will become more and more disoriented and therefore more vulnerable to making poor concession decisions.

How To Counter The “Hurry Up And Wait Tactic”

The “hurry up and wait” tactic is a powerful negotiating tactic that puts much of the power during a negotiation into the hands of the buying side of the table. It is difficult to counter, but there are steps that you can take.

The most important step that you can take is to realize what is going on. Once you recognize that the “hurry up and wait” tactic is being used on you, you’ll be better situated to respond to it. Your first step should be to notify the rest of your company about what is going on – this will remove much of the pressure that they would otherwise place on you to wrap the negotiations up quickly.

Your next step is to search for ways to negate the use of the “hurry up and wait” tactic. What you need to find is a motivation for the other side to move faster. If the item that is being negotiated is in limited supply or if there are potential delivery issues, you have the option of informing the other side of this. They are more than welcome to take as much time as they want; however, let them know that what they are negotiating for may not be available if they delay for too long!

What All Of This Means For You

During a sales negotiation, there are expectations as to what the pace of the negotiation will be. The buyer controls the pace to a great extent and if they decide to do so they can use the “hurry up and wait” tactic.

By alternating the pace of the negotiations from fast to slow to fast again, the buyer can wear the seller out and induce anxiety. This can cause the seller to start to doubt their price and therefore end up lowering it just to stay in the game.

Sellers need to keep their eyes open in order to detect when this tactic is being used. There is no clear-cut defense against it; however, being aware that it’s being used is a good start. Sales negotiators who can detect when the “hurry up and wait” tactic is being used will be better prepared to roll with it and still end up getting a good deal.

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

Question For You: When do you think that you say enough is enough and walk away from a negotiation where the “hurry up and wait” tactic is being used?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

Talk about running into a brick wall! Sometimes when we are in the middle of a negotiation, especially with a state or federal official, we come face to face with a regulation that prevents us from getting what we want. Is it time to give up? Nope, you just need to know the magic 6 words that you need to say…

Using The Bogey Tactic To Get Your Way In A Sales Negotiation

Friday, October 29th, 2010
Image Credit If Your Wallet Is Empty, Then It's Time To Bring In The Bogey Tactic

If Your Wallet Is Empty, Then It's Time To Bring In The Bogey Tactic

So there you are in a sales negotiation, you like what is being offered to you but there is one small problem. You don’t have enough money to buy it. What can you do? Walking away is of course one option; however, maybe there’s something else that you can do. It turns out that this is right time for you to pull out the bogey tactic and give it a try.

The Bogey Tactic

So just exactly what is the bogey tactic? This is when you simply don’t have enough money to buy what is being offered to you during a sales negotiation and you tell the other side that.

The beauty of the bogey tactic that, if done correctly, it can turn into a win-win approach to reaching a deal. There’s a very good chance that either you’ve used it in the past or it’s been used on you (successfully probably!)

How To Use The Bogey Tactic

When you are in the role of a buyer who is involved in a sales negotiation, the bogey tactic can be your best friend. Here’s how you would go about using it.

Let’s say the other side of the table has presented you with a proposal. What they are offering is great, but you simply don’t have the cash to pay for it. What to do now?

Using the bogey tactic, you’d tell the other side that you like their proposal, but it was currently out of reach of your ability to pay. This would cause two things to happen on the other side of the table. First, they’d be pleased that you are interested in their proposal. Secondly, they would instantly start trying to think of ways that they can still make this deal happen.

You may need to prove your point. This can be done in a bunch of ways. Your goal will be to show to the other side how much money you do have to spend and why additional funds are not available to you.

What You Can’t Accomplish Using The Bogey Tactic

If you are trying to get a lower price from the other side, the bogey tactic probably isn’t going to help you out. However, what it can do is actually get you more for your money. As the other side works with you to find a way to make the deal happen, more choices will be presented to you to choose from.

Just having more choices doesn’t mean that the cost to you is going to decrease. However, by choosing wisely you can end up getting more value for the money that you do end up spending.

Why Sellers Like The Bogey Tactic

Just to be completely fair here, sellers like the bogey tactic also. The reason is because when the buyer uses the bogey tactic, then the seller knows that they are close to making a deal.

There are two things that a seller can do once the bogey tactic starts to be used. First they can test to see if the buyer ready is at the limit of the amount of money that they can spend. Often times there are still additional funds that can be tapped and the buyer just needs motivation to find them.

If this turns out to be true, then the next step is to change what is being offered. By substituting less expensive options for what was in the initial proposal while keeping the price at the customer’s upper end, the profit margin on the deal can be increased.

What All Of This Means For You

All too often during a negotiation you’ll be presented with a proposal that meets your needs, but which exceeds your budget. When this happens, you can use the bogey tactic to see if you can move closer to completing a deal.

When you use the bogy tactic, you reveal to the other side of the table that you like the proposal that they are making; however, it’s too expensive. This encourages the other side and motivates them to work with you to find ways to lower the price of their offering.

The bogy can work for both the buying and selling sides of the table. The key thing is that by revealing why an offer is too expensive, you may open the door to moving closer to making a deal that works for both sides. Don’t fear the bogey!

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

Question For You: Do you think that you could reveal how much you have to spend too early on in a negotiation?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

Why Professional Sales Negotiators Build A House Of Straw

Friday, October 22nd, 2010
Image Credit Using Straw Issues During A Negotiation Can Give You More Shelter

Using Straw Issues During A Negotiation Can Give You More Shelter

In order to make your next sales negotiation a success, you are going to end up having to make some concessions. Knowing that you’re going to end up having to do this means that you’re going to need to have some strategies up you sleeve relating to how you want to manage your concessions. One time-honored way to make the whole concession thing work out for you is to use “straw issues”. Let me explain myself…

What Is A Straw Issue?

A sales negotiation is simply a discussion about a set of issues. The number of issues that are being discussed can play a big role in the eventual outcome of the negotiations. The more issues that you have to discuss, the greater the probability that you’ll be able to reach an agreement with the other side of the table.

This is where straw issues come in. Straw issues are throwaway issues that you put on the table. You really don’t care that much about them; however, you present them to the other side along with your real issues. Their real value to you is in that they have an exchange value.

The beauty of straw issues is that the other side won’t be able to tell the difference between your real issues and your straw issues. This means that they’ll see your straw issues as being just as important as all of the other issues and assume that they need to be solved if a deal is to be reached.

How To Use Straw Issues

Face it – you’re going to end up surrendering your straw issues during the course of a sales negotiation. This shouldn’t be a big deal – that’s why the straw issues are there in the first place.

What you need to understand is what giving up a straw issue is going to do for the negotiations. The other side will feel an immense sense of satisfaction when they “win” on the straw issue. It will be a trophy that the other side will be able to show to their management. Additionally, the negotiator on the other side will feel a sense of relief just because another issue is off of the table now – they are that much closer to reaching a deal.

How A Buyer Should Deal With Straw Issues

Straw issues are a buyer’s best friend. You should make sure that at the start of the negotiations that you ask for more than you really want. This can include such things as the amount of time that you’ll have to pay for what you are buying, increasing your credit limit, changes to the warrantee, etc.

Keep in mind that you won’t actually get everything that you are asking for. That’s not the purpose here. Just by giving in on some of the issues that you don’t care about you’ll make progress towards the negotiating goal that you want to achieve.

How A Seller Should Deal With Straw Issues

As a seller, you’ve got to realize that there will always be straw issues on the table during any negotiation. This can be a powerful internal tool for you: as you clear the straw issues off of the table your management will believe that you are doing good work.

Just because the other side of the table shows up with a lengthy set of issues that they want to discuss, don’t despair. Recognize that many of the issues that they are presenting don’t really count and work to find out which one’s do matter. Most of the time you can get the other side to fold on most of the non-essential issues fairly quickly – unless they are an expert negotiator!

What All Of This Means For You

Half of the art of sales negotiating is knowing when to give in. It turns out that even this part of a negotiation can be managed. The use of straw issues can make your negotiating job a lot easier.

Straw issues are valid issues that you really don’t care about. By including them in the negotiations you provide yourself with additional ammo when it comes time to make concessions. Giving in on a straw issue can make the other side happy while not eroding your position on more important issues.

In the end straw issues are one more negotiating tactic that you have available during your next sales negotiation. Study it and you’ll understand how to use this powerful tool in order to strike better deals.

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

Question For You: How many straw issues do you think that you should include in your initial list of issues to be negotiated?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

So there you are in a sales negotiation, you like what is being offered to you but there is one small problem. You don’t have enough money to buy it. What can you do? Walking away is of course one option; however, maybe there’s something else that you can do. It turns out that this is right time for you to pull out the bogey tactic and give it a try.

Why Providing A “Best And Final Offer” Is Never A Good Idea

Friday, October 15th, 2010
Image CreditSometimes the other side of the table can make scary demands of you

Sometimes the other side of the table can make scary demands of you

Every sales negotiation starts out in a particular way. Sometimes it’s good like when the other side lays out the issues and makes a concession to you right off the bat. Other times it’s bad. You know it’s going to be bad when the first words out of the other side’s mouth are “Give me your best and final offer”. What’s a sales negotiator to do now?

Demand And Offer Tactics

In the world of sales negotiations there is a group of set tactics that have been used since the start of time. Starting a negotiation by stating that you want the other side’s best offer is one of these ancient tactics.

Often times when the other side makes this bold statement, they’ll follow it up with an explanation. This explanation often goes something along the lines of “I don’t like to negotiate”. Great statement, but it’s pretty much untrue – this is simply the way that they like to start their negotiations.

Why Providing A Best And Final Offer Is Never A Good Idea

What the other side is trying to do is to get you to start the negotiations at a lower price point than you normally would. This is a fantastic advantage for them – they will have made a great deal of negotiating progress with very little effort on their part.

All too often, when a negotiator is presented with this kind of statement, they’ll panic. The last thing that they want to do is to anger or upset the other side of the table and so they’ll react in a way that they think will diffuse the situation. Generally this means that they’ll go ahead and lower their price.

The problem with this is that despite what the other side said, the offering of this lower price does not result in a deal. Rather it just provides a point for the negotiations to start at. Once the other side sees how much you were quickly willing to come down in price, they’ll know that there is more lowering that you can be made to do.

How To Counter This Negotiating Tactic

As a sales negotiator you need to be on the lookout for the use of this tactic. When the other side starts to use it on you, clearly what you don’t want to do is to follow along and provide them with a low-ball offer.

Instead, what you are going to want to do is to change the discussion. Without rejecting outright what they are asking for, you’re not going to want to give it to them.

What you are going to want to do is to take the time to explain why your position is so unique that it’s worth the initial value that you’ve placed on it. Make sure that you point out things that the other side of the table can’t get anywhere else.

After all of this is said and done, you may still find yourself in a position where some lowering of your price is going to be necessary. That’s ok. Just make sure that you only lower it a small amount. Once again, this isn’t going to allow you to reach a deal, rather it’s the start of the negotiating process.

What All Of This Means For You

Every sales negotiation involves the use of tactics by both sides in order to get what they want. You will often encounter situations where the other side tells you to provide them with a best and final offer. Don’t do it!

Instead, use this as an opportunity to revisit why your offering is more valuable than other offerings that may be available at a lower price. Yes, the other side will push back on this, but you will have changed the discussion from a pricing discussion to a discussion about the value of your offering. This is much safer ground.

In the end, every sales negotiation comes down to price. Being aware of the other side’s tactics and making sure that you are ready to deal with them is what will make you a great sales negotiator.

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

Question For You: How do you deal with the other side when they become visibly angry with your negotiating position?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

What We’ll Be Talking About Next Time

In order to make your next sales negotiation a success, you are going to end up having to make some concessions. Knowing that you’re going to end up having to do this means that you’re going to need to have some strategies up you sleeve relating to how you want to manage your concessions. One time-honored way to make the whole concession thing work out for you is to use “straw issues”. Let me explain myself…