Easy Negotiation Techniques

There are a number of purportedly scientific ways to study negotiation.

One of them is mathematical modeling of decision making, also known as game theory. This area attempts to quantify the probabilities that A will or will not do X in his bargaining with B.

Game theory was one of the tools used during the Cold War to work through the scenarios in which the superpowers would or would not engage in a nuclear attack.

The problem with scientific approaches is that they don’t adequately measure or predict such human motivations as greed and disgust, nor do they fully take into account the histories of the negotiators. I like to point out the quite unpredictable moves people make when they are engaged in a “nibbling” encounter.

Nibbling, a term coined by Herb Cohen, is trying to improve a deal by getting an extra morsel, often as transactions are culminating. The example of a man shopping for a business suit is offered as an illustration. After he has tried it on, it has been chalked and pinned by the tailor the patron asks which shirt and tie the salesperson would recommend to complement the ensemble.

Enthusiastically, the clerk returns with a crisp shirt and power tie. The customer removes the jacket and pants and asks, “If I buy the suit, will you throw in the shirt and tie?”

At this point the customer seems to be in control. The seller and his tailor are ego-involved in writing up the order. As a percentage of the overall purchase, the shirt and tie are not much extra, at least computed at cost to the store.

All the seller has to do is cut his commission a little, and he has an order. But will he buckle?

Nibbling advocates predict he will, at least often enough to make the gambit a successful one for the customer. They say greed will conquer disgust.

Not necessarily.

There is an expressio Read more »

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Welcome To The Age Of Partnering

Remember when every business used to view themselves as an island? This made life pretty simple for anyone doing sales negotiations - it was always us vs. them. Well, it sure looks like someone farther up the corporate ladder has been reading those business self-help books and they’ve decided that there is a better way to go about doing things: partnering.

Why Does Becoming A Partner Make Life So Difficult?

So just what is a partner? In simple terms (and it can get a lot more complicated if you let it), a partner is another company with which your company has decided to form a special, deeper, relationship. For a sales negotiator, this new type of relationship can complicate our lives immensely.

Before partnering came along, you had a great deal more latitude in how you conducted a negotiation: simply put, you really didn’t care that much about the other side of the table - you just wanted the best deal for your company. Partnering changes all of this.

The key here is to view a partnership as a bonding of two companies together (dare I say “marriage”? ) This is much different from a simple long-term partnership where you treat the other firm nicely, but you know that it’s not going to last (perhaps “dating” would be the right word here).

What Role Does Win-Win Negotiating Play In A Partnership?

One of the biggest changes that a partnership brings about in the life of a sales negotiator is the arrival (with a “thud”) of win-win negotiating. Instead of having the latitude to walk away from a deal with a partner, you’re pretty much expected to be able to reach an agreement with them. After all, they are a partner, right?

What this means is that the clever sales negotiator (you) now needs to use win-win neg Read more »

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Asian cultures are said to be more concerned about face-saving than Western cultures. I’m convinced that Westerners are just as concerned about saving face. Perhaps our concern is deeply hidden, but it’s there. Face-saving is one of the big hidden issues in every negotiation.

People negotiate on two levels: personal and business. A bad deal for a person’s organization may not be bad for them personally. Conversely, if an individual suffers loss of face in dealing with another, even the best agreement will leave a bitter aftertaste. All of us need to validate our self-worth. During a negotiation, when our self-image is threatened, hostility emerges.

When an individual feels threatened they may make threats of their own, walk away, or become apathetic-but all usually get angry. Experiments show that people, given a chance, retaliate against the person who attacks their ego. Those who have “lost face” are willing to suffer losses to themselves if they can cause the abuser to suffer. Research clearly supports that the person whose “face” is threatened withdraws. The more critical the attack, the less information the face-saver communicates. Loss of face becomes significantly more serious when the abuse is visible to friends or associates who are important to them.

A negotiation can hardly be conducted without questioning the other person’s situation and position. One must probe into the facts and assumptions. But take care to avoid making these probes personal. They should be directed at the business issues and not at the competence of the other person.

There are ways to minimize the potential hostility that might be created when a person is put into an awkward position. Try blaming errors and discrepancies on third parties, or other peopl Read more »

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