Negotiation and the Forget-You Response
February 2nd, 2009 |Manny Ramirez is considered by a consensus of fans and sportswriters one of the best hitters in baseball, and unless he takes steroids or bets on games, he is expected to be a shoo-in for the Hall of Fame, when he hangs up his cleats.
Having said that, why is it taking so long for this king of the batter’s box to sign a rewarding contract for the 2009 season?
Spring training begins in something like three weeks!
The official word is that the Dodgers offered a two year contract and Manny wants a minimum of four. It also appears no other club is in contention for his services, which are so impactful that having Manny in the lineup can make the difference in reaching the post-season, as the Dodgers did in 2008, or warming the couch in October. I believe both sides are saying, “Forget You!” or what is known as the debilitating F-You response in negotiating. This sort of deadlocking happens all the time when amateurs square off to bargain.
Recently, Bill and his wife went out looking for beach houses to rent. A suitable castle on the sand was listed about $750 over market, according to Bill, who had done an exhaustive competitive analysis, so he offered precisely the listing price, less $750, explaining in detail how he had arrived at the figure.
The owner, who had been spoiled by higher rents when the economy was roaring, refused to lower his price by even one cent. He told the property management company, “Either they’re willing to pay my price, or forget them.”
The owner decided, at least tacitly, that he would prefer to watch the place stay empty, at a cost to him, personally, of thousands per month, than “give it away” for less than what it was worth, at least in his mind.
Playing the negotiation game the Forget-You way creates lose-lose outcomes; nobody wins.
Plus, it generates hard feelings all around, tainting negotiations with the future participants, who we expect to adopt similar destructive gambits.
Again, amateur negotiators fall into this trap almost all the time.
Professionals, on the other hand, do everything in their power to avoid a stalemate, that point where either side is saying “Take-it-or-leave-it.” As long as we avoid ultimatums and verbal attacks, such as demands and commands, our negotiations can continue toward a productive and mutually advantageous outcome.
It reminds me of generals in the armed services who maintain they are the most reluctant to send soldiers to battle, because they have actually tasted the bitter fruits of wars. Professional negotiators feel the same way about negative tactics in bargaining. They have seen them blow-up, again and again.
What is the better path?
According to experts, we need to replace positions with interests. For example, Bill and wife can revise their offers to take into account the other needs of the owner. If he is on a fixed income, or strapped for cash, they can still offer less money monthly, but ante up a few months rent in advance, easing the owner’s current cash needs, while demonstrating their financial strength and reliability.
They can agree to a longer-term lease, instead of 12 months, they might offer 18 or 24, which has the functional effect of shortening his future vacancy time, and out of pocket costs.
The owner “wins” from the vantage point of generating more long-term, assured dollars, fewer vacancy hassles, and more up-front money, and Bill and bride are able to curtail their monthly outlays for rent.
Moreover, in an environment of DECLINING RENTS and declining property values, a longer term commitment becomes more and more valuable with the passage of time, providing the owner with greater purchasing power, exactly what those on a fixed income might need. The F-You response won’t reach this sort of agreement, because it is impulsive, emotional, and irrational.
Sadly, it curtails discussions, which if continued in a positive way, can reveal a broader spectrum of interests of both sides, permitting them to customize deals to each other. Which makes you wonder all the more why Manny is still waiting for a club to join.
Is it too much to expect major leaguers, with so much at stake, to be professional negotiators, as well?
Dr. Gary S. Goodman is a top speaker, sales, customer service and negotiation trainer, best-selling author, and TV and radio commentator. He conducts seminars and convention presentations around the world and can be reached at: gary@customersatisfaction.com. His profile can be read at: http://www.linkedin.com/pub/0/a91/833
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