Posts Tagged ‘deadlock’

6 Things A Sales Negotiator Needs To Know About Using Threats During A Negotiation

Friday, April 20th, 2012
Image Credit Sometimes during a negotiation, your bark has to be as bad as your bite

Sometimes during a negotiation, your bark has to be as bad as your bite

Who doesn’t like to use a threat during sales negotiations every so often? Threats are yet another one of the negotiation styles and negotiating techniques that we can use. It’s like a big stick that you can haul out and set on the table. There it sits, out where everyone can see it and the other side of the table knows what you could do with it if you wanted to. It turns out that that big stick has some consequences that you need to be aware of.

Threats Are Not Without Consequences

Every negotiation that you are involved in will have the possibility of at least one threat involved in it. Give it some thought – every negotiation has the possibility of ending in deadlock as one possible outcome – that’s a threat!

When you decide to use a threat of either taking or not taking some action, you need to understand that with a threat comes both intended and unintended consequences. What makes a threat really powerful is if the other side decides that they will either gain or lose by believing your threat.

6 Things That You Need To Know About Using Threats In Negotiations

If you aren’t careful, the use of threats during your next negotiation can result in hostility. Not only that, but they can also result in unintended consequences for you. Because threats are such a tricky weapon to use, here are 6 things that you need to know in order to use threats correctly:

  1. Credibility Counts: Your threats won’t have any impact on the other side if you aren’t going to be seen as being willing to carry them out. We see this all the time around us when we see parents making big threats that they have no intention of ever carrying out to their children in order to get them to behave.
  2. The Threat Has To Match The Issue: We’re talking about proportionality here. The threat has to match what is being negotiated. If you are trying to get the other side to agree to a small request, then don’t use a huge threat to nudge them to give in.
  3. No Threats Without Backing: Make sure that your organization is going to back you up on your threat. If the other side of the table knows that they can just go around you and get what they want, then your threat has no teeth.
  4. Threats Linger: Before you use a threat, you need to realize that a threat can linger as part of the negotiation process long after you use it. The other side of the table may become angry at having been threatened and may be looking for ways to get revenge later on in the negotiations.
  5. Threats Change Relationships: If you have a preexisting relationship with the other side of the table, using threats may forever change that relationship. You need to evaluate whether it’s going to be worth it to use the threat.
  6. Threats Can Get Away From You: Once you’ve made a threat during a negotiation, you can’t take it back. A threat that has been released into the wild can easily get away from you and may get out of control. How the other side reacts to your threat may be far beyond what you had anticipated.

What All Of This Means For You

Threats are a part of every sales negotiation no matter if we want them to be or not. They should almost be part of the negotiation definition. They have a role to play even in a principled negotiation. The key thing that every negotiator needs to realize is that threats have consequences that you need to be aware of.

If you make the decision to use a threat during your next negotiation, then you need to take certain precautions. These include being credible, making your threats proportional, making sure that you have backing, and understanding that the use of threats has long-term consequences.

In order to be a successful negotiator, we need to be able to make use of every negotiating tool that is available to us. This can include the use of threats. Keep in mind that as powerful as a threat may be, threats do come with some significant consequences that you need to be aware of. Keep these in mind and you’ll have yet another powerful tool at your disposal.

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

Question For You: What’s the best way to determine if you have the backing of your company before you start making threats during a negotiation?

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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

There you are in your next sales negotiation and everything is flying along nicely. All of a sudden, wham! The other side goes and suddenly threatens you with something if you don’t do or agree to one of their demands. Oh, oh – that “Dummy’s Guide To Negotiating” book that you read last month didn’t cover this situation. What’s a negotiator to do now?

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…

Negotiators Know That Persistence (& Risk Taking) Pay Off

Tuesday, October 6th, 2009
Persistence And Risk Taking In Negotiations Can Pay Off

Persistence And Risk Taking In Negotiations Can Pay Off

In this world there are two types of negotiators: the good ones and everyone else. The goal of any negotiator is to become a member of the group of good negotiators. The challenge is that the path to becoming a good negotiator is not always clear. However, there are two basic skills that lay on this path: persistence and the ability to take the right risks.

Persistence Pays Off For Negotiators

Persistence is another one of those skills that we all think should be obvious to ever negotiator; however, it’s very easy to not have it. When the other side of the table says “no” to one of our offers during a negotiation, it’s very easy to lose heart and give up.

However, the negotiator who treats every “no” as a step towards “yes” is the one who will be successful in the end. Realizing that there is a reason that the other side is saying no and then being persistent enough to continue talking until you uncover that reason is the key to success.

American negotiators have been confronted with negotiators from other countries who appeared to be unmovable in their positions. Day after day the negotiations would continue with no progress being made. In the case where the Americans would return to the table and not give up, eventually progress ended up being made. The other side’s unmovable position was just a ploy to see how committed the Americans were to the negotiations.

Risk Taking Has Its Rewards

Being persistent in a negotiation is a form of risk taking: you are risking continuing down a path that may not pan out for you. However, there are other forms of risk taking that can occur during a negotiation:

  • Deadlock: The risk of encountering a deadlock faces every negotiator. The more you press a point, the greater the possibility that the other side will become unyielding. A skilled negotiator knows how to not force the other side into a position from which there is no way out.
  • Losing Current Deals: Whenever a change to an existing deal is being negotiated, both parties realize that there is a risk that they could walk away from the table with no deal at all. Often it’s this fear of losing an existing deal that will keep both parties at the table. Sharp negotiators realize this and will be willing to push harder because they know the other side of the table won’t walk away.
  • Losing Opportunities: Both buyers and sellers can potentially not realize that a deal is more important to the other side than it seems at first glance. Sellers may be trying to break into a new market or buyers may be trying to get additional suppliers. In situations like this, the other side of the table can press harder because the risk of reaching a deadlock is much less.

Final Thoughts

Successful negotiators aren’t that much different from everyone else. The things that distinguish them are actually very small details. Two of the most important features of a good negotiator are persistence and knowing when to take risks.

Persistence means knowing when to keep on even after you’ve been told “no” by the other side. Good risk taking is when you know that your persistence will pay off for you in the end. When you can combine these skills, you will have become a good negotiator and you will be able to close better deals and close them quicker.

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What We’ll Be Talking About Next Time

Quick: what’s the first thing that you think about when you picture your next negotiation in your mind? Unless you are Mother Teresa’s brother / sister I’ll bet that you saw yourself walking away from the bargaining table with the best deal in the world , you had gotten everything that you had wanted and more. Umm, what about the other side? That’s why win-win negotiating never works.

Tips From The Middle East For Sales Negotiators

Tuesday, May 5th, 2009
The People Of The Middle East Have Always Been Sales Negotiation Experts

The People Of The Middle East Have Always Been Sales Negotiation Experts

They say that the world is getting smaller every day. This may be true, but the people who live in this smaller world couldn’t be more different than they are! A case in point are the  sales negotiators who hail from the Middle East – Arabs if you will. Unlike us in the West who become uptight at the mere thought of entering into a negotiation, they actually look forward to negations – it’s fun!

There is a lot going on behind the scenes here. Not the least of which is that negotiating has been a key part of Arab culture since days in which the very first trade routes wound their way through the Middle East connecting Europe to the Orient. They’ve gotten to be quite good at this skill and it shows when you negotiate with them.

One thing that Westerners need to understand when entering into negotiations with Arabs is that bargaining is a very social activity for them. You’ll find that you will be greeted warmly and food and drink are often provided in generous quantities. This can throw a Western sales negotiator off because you’ll start to feel as though you are at a dinner party instead of a sales negotiation.

Arabs also have a different view of time than those from the West. In part because they enjoy the sales negotiation process nothing will be rushed. You’ll find that there are many breaks, many side discussions, and frequent interruptions.

These interruptions may include visits from people not involved in the sales negotiations. They may come and go multiple times. Just let it happen. You need to keep your calm and realize that you are playing the same sales negotiation game, just at a different table.

Finally, you need to realize that Arabs don’t really worry about deadlocks. They have no problems walking away from a sales negotiation and then coming back to it later on. They always hope to eventually do a deal, but they realize that sometimes this is not possible.

Have you ever had a chance to participate in a sales negotiation when the other side of the table was from the Middle East? Did they seem to enjoy the sales negotiation process? Was time a factor? Did you ever encounter a deadlock? Leave me a comment and let me know what you are thinking.

A Sales Negotiator’s Guide To Dealing With A Deadlock

Tuesday, February 10th, 2009
A Deadlock During A Negotiation Can Bring Things To A Screeching Halt

A Deadlock During A Negotiation Can Bring Things To A Screeching Halt

When driving a car, the #1 thing that most of us fear is hitting a wall. Or another car. Or pretty much anything that would cause us to come to a complete stop quickly. Why are we so afraid of this? Well duh – it will damage / destroy the car that we’re in, delay or prevent us from getting to where we want to go, and may even result in damage to us. The same thing can happen during a negotiation, but we call it a deadlock.

A deadlock occurs when both sides have not yet reached an agreement and all of a sudden they reach an issue that they fundamentally cannot agree on. If negotiating was a board game, then there would be no possible moves for either side to take – deadlock.

If you are a negative person you might be willing to give up and walk away. Lots of people do. A deadlock is a powerful thing and it can affect both sides of the the negotiating table in the following ways:

  • A deadlock tests the resolve and the strength of both sides.
  • A deadlock often forces both sides to be willing to give more concessions after it occurs.
  • A deadlock is a signal to both sides of the table that what they want out of the negotiation might not be possible.
  • A deadlock can cause both sides to reduce what they expect to get out of the negotiations.
  • A deadlock can mess up schedules for both sides.
  • A deadlock can make a negotiation more expensive and riskier for both sides.

So this all seems like it’s pretty serious stuff. However, there’s more.

Both sides of a negotiation realize going in that a deadlock can occur. The key thing that you as a negotiator need to determine is which side fears a deadlock more. Generally speaking, the larger an organization is and the more layers that it has in its management structure, the less able it is to deal with a deadlock. If you are willing to risk not walking away with a deal, then your negotiating power may be greater than the other side’s.

No matter how much power you think that you have, what every negotiator needs to realize is that when a deadlock occurs during a negotiation, it’s the negotiators responsibility to find a way to resolve it. A deadlock can have a significant impact on a negotiator’s career in the following ways:

  • You may get criticized by your own management.
  • You may end up getting extra work in order to resolve this deadlock.
  • You may lose your job.
  • You may have a personal sense of failure.
  • You may become frustrated.
  • You may lose friends and damage relationships.
  • You may make people angry with you.
  • You may lose self-confidence.
  • You may start to question your own business judgment.

So there is a lot of personal risk going on here. What’s a negotiator to do? One key action that you can take occurs before the negotiations start. Every negotiation is really a team event – it’s not just you sitting on your side of the table, it’s really you, your team,  and your management structure. If you take the time to discuss the possibility of deadlocks, what might cause them, where in the negotiations they might occur, and how best to deal with them then you’ll avoid a lot of the consternation that a deadlock can cause your team.

One final point – don’t give up just because you encounter a deadlock. In fact, the longer that the negotiations have gone on before the deadlock was encountered, the better your chances of being able to restart the discussions are. The more effort that has gone into the negotiations will mean that neither side wants to let a deadlock stop progress from being made…

Have you ever encountered a deadlock during a negotiation? Did this cause the negotiations to stop? What did you do to try to restart the negotiations? Were you successful? Leave me a comment and let me know what you are thinking.