PLAY RELUCTANT BUYER
When you are buying, you can squeeze the seller's negotiating
range with this three-stage tactic. Stage One: Listen
very carefully to their proposal and ask all the questions you
can think of. Stage Two: Tell them that you appreciate all the
time that they have taken with you, but tell them it's not
exactly what you're looking for. Stage Three: At the last
moment, call them back and say, "Just to be fair to you, what
is the very lowest price you would take?"
Danger Point: A seller may be playing Reluctant Seller
with you.
Solution: Believe that you have more power than you do.
Let them know that you have options. This gives you power.
ALL POWER IS SUBJECTIVE
You have power if you think you have power, even if you
don't. You don't have power if you don't think you have
power, even if you do. Reality doesn't matter in a negotiation.
Perceptions matter because perceptions become reality.
The Japanese surrendered in 1945 because they thought
we had an arsenal of atomic bombs with which we could
destroy their country. We didn't. We didn't have any more
atomic bombs. We had made only two and had just used
both of them. But they thought that we had more, and that
perception became reality.
Danger Point: You feel that you have no power in the
negotiation because the other side appears to have options
and you don't.
Solution: Find out whether their options are real. Or have
they just convinced you that they have options when they
don't. Then work to convince them that you have options.
The perception of options gives you power.
DEVELOP YOUR REVERENT POWER
Reverent Power refers to your ability to project that you
have a consistent set of values and beliefs. Ronald Reagan
had it. Bill Clinton did not. Acting consistently makes people
trust you.
Danger Point: Other people can use this on you. When
they say to you, "But this is our standard contract that all of
our vendors sign," or "We've never made an exception to
this in the 27 years that we've been in business," realize that
they are just using Reverent Power on you. It's hard to
oppose because we admire people who do things in a consistent
way.
Solution: Research to find out if they have ever made
exceptions to the rule and let them know that you know
about it. If you can't find any exceptions, you must convince
them that it's time to change the rule.
GAIN POWER BY IGNORING
REWARD AND PUNISHMENT
If you feel that the other side can reward you by accepting
your proposal or punish you by turning you down, you
have given them the power to intimidate you. Turn that
around by projecting that you have options. Tell them you
are very cautious in selecting your business partners and
they are fortunate that you are willing to do business with
them.
Danger Point: They may call your bluff when you tell
them that you have options.
Solution: Work to develop your options before you start
the negotiation. It's the most important thing you can do.
DECLINING VALUE OF A SERVICE
The value of a material thing can go up because of scarcity
or inflation. However, the value of a service always
appears to go down rapidly.
Danger Point: You make a concession in the negotiation
in the hope that the other side will make a reciprocal concession.
Time passes and the value of your concession goes
down immediately.
Solution: If you make a concession, get a reciprocal concession
immediately, before its value evaporates. Better still,
make your concession conditional upon their concession.
HANDLE IMPASSES WITH THE
SET-ASIDE GAMBIT
If you are a long way apart on an issue, set that issue aside
and create momentum by reaching agreement on smaller
issues.
Danger Point: Before the negotiation starts, they tell you
that they already have two good proposals from other people.
And unless you can beat those proposals, there is no
point in talking.
Solution: Tell them there are many things to resolve before
you can discuss price. Create momentum by resolving smaller
issues first.
Learn more about Roger Dawson and his bestselling
audio program The Secrets of Power Negotiating.