Negotiation Tactics

Business Negotiations
part 3
Osvaldas Čiukšys
sadlavso@hotmail.com

How to control negotiations

1. Controlling the environment (discussed earlier):
arrangements, drafts, seating

2. Setting the agenda (discussed earlier):
imposing agenda that you prefer

3. Controlling the course of negotiation:
using questions and expressing emotions

© Business Negotiations, Osvaldas Čiukšys

Types of questions in negotiations

1. Open questions: designed to get more
information and require explicit answers

2. Probing questions: more specific sort of open
questions which require detailed explanation

3. Closed questions: requires short answers of
“yes” or “no” type


Open questions and phrases (1)

Most important and effective tool to control negotiation (their
subject and time frame) are open questions (or phrases):

“What do you think about the possibility to change your
delivery terms ?”

“Can you change your delivery terms?”



Examples:
• What do you think about our proposal?
• Please tell us more about the strong sides of your proposed payment
terms
• Could you elaborate a bit more on the delivery terms?
• Would you be so kind to explain your idea about the solution to this
problem?
• Correct me if I’m wrong
• The most important thing for me that everything is done correctly and
fairly
• We would like to settle it in accordance with best common practice and
experience
• Can I ask a few questions to see if my understanding and information are
correct?



“Let the doors stay open” examples:

• Let us say that we agree with that proposal, what would be your
suggested way to proceed?
• Is there any other information you feel I should have at this time?
• Whys is that so important to you?
• Let me get back to you on this later
• Please help me understand the purpose of your request/offer


Probing questions
• When you say “approximately”, what do you
mean by that?
• What else would that entail?
• How specifically would that work?
• If we meet your requirements what exactly would be
your offer to us?
• If speaking more specifically, what do you mean
by saying…?
• You said that your offer is… It seems that your
current positions is…


Closed questions

• Do you agree?
• Are you saying we could by-pass that?
• Is that always the case?
• Am I correct?
• Do you want me to close the issue?
• Are you happy with this?
• Should we proceed further?


Expressing and sharing emotions (1)
Speak about your emotions during negotiation process.
Use it to create constructive and controllable
environment
Examples:
• We had a good start. That makes me optimistic!
• We are doing not very well this time. Are your of the same
opinion? What are the reasons your think?
• I feel exhausted by this issue. Should we change for something
better?
• I am so happy we agreed on this. It makes me think we will
move easier now. Don’t you think so?
• Should we break for a coffee? I think we deserved it both! Lets
discuss it informally…


Expressing and sharing emotions (2)

React immediately to what is unacceptable or undesirable for
you: take the control back

Examples:
• Sorry to interrupt you, but I can’t understand the reasoning behind it
• I feel uncomfortable: I can’t see enough logic behind these
arguments
• I am an open person and I should tell you my opinion about what I
just heard
• This made us a bit nervous. Could we go back and look to the
situation from a different perspective
• It makes me feel bad if we can’t agree on it. Let us try to focus on it
later and finish our agenda


Controlling the course of negotiation

 Right questions help you control the overall
situation of negotiation

 Quick reaction and responsiveness enables you
to take over the control of situation


Negotiation tactics

Negotiation tactics are purposely used or preliminary
planned behavior, directed to achieve the main goals
of negotiations. They are directed to:

 Reinforce negotiating power
 Gain some initial supremacy in negotiation
 Collect not disclosable information
 Make the other side emotionally disbalanced
 Take control over the negotiation process


Main negotiation tactics used

I. To check the opponent resistance point /
reservation price/ maximum price
II. Aggressive
III. To gain positional advantage
IV. To gain quantitative advantage (not equal exchange)
V. To disbalance opponents emotionally

There are separate group of tactics, so called DIRTY or UNFAIR
tactics often used in negotiations as well


Main negotiation tactics (1)

I. To check the opponent resistance point /reservation
price/ maximum price:

1. Small steps
By adding a small improvements (step by step) to the first offer you are
reaching the maximum price of the other side they are willing to pay

2. Best offer for the budget you have
Offer to disclose your budget/ maximum price: “How much you can
spend? We have the most suitable offer for you”

3. Extreme position (Low ball/High ball)
Initial offer received is done in the manner and under conditions to be
unacceptable for the other side in order to provoke disclosure of the
other side real intentions (resistance point)



II. Aggressive

1. First and Final offer (Ultimatum)
Requirement to accept the first offer (or second) otherwise negotiations
will be stopped
2. Threat of termination
Requirement to accept offer or conditions under threatening to terminate
negotiations
3. “Best” offer (Take it or leave it)
Explicit pressure not to enter into negotiations. Statement that the best
offer is done and there is nothing more to add to it.
4. Attacks
Attacking you personally or attacking your company or your country .“Tell
me, why I usually enter into some problems when we have a meeting or
I’m coming to your country?”


III. To gain positional advantage (1)
1. Hand over (“Hot potato”)
To handover your problem to the other side. “I have the amount A
but would like to have the thing B. Tell me, what I have to do?”
2. Misleading (Snow ball)
Concentration on some not really important issues, overloading the
opponents with too much information
3. Wrong target
Over evaluation of an argument or issue done on purpose to gain concession
in return. Not important concession is traded-off after hard bargaining
4. Higher authority
Agreed issues or received offers have to be approved by the higher management
offer is done and there is nothing more to add to it.


III. To gain positional advantage (2)
5. Good cop/ Bad cop
Deal with more sympathetic opponent while the other is absent or
excluded from negotiations

6. Reluctance
Showing to the opponents that you are not interested or indifferent
to negotiated subject

7. The Squeeze
Telling the other side that he or she has to do better in order to make the
other side to give concessions without getting something back. “Seems to
be that you are not eager to work on it. We’ve done a number of
concessions and waiting for your adequate move”



IV. To gain quantitative advantage (not equal exchange):
1. Split the difference
The split difference between initial proposals “has to be approved” by one
side’s higher authority . You set and split the lower difference again
2. Demand for reciprocity
Requirement to reciprocate by giving a concession or offer to not
important concessions made or offer given by the requesting side
3. Additional requirements
Not important requirements and arguments are exchanged for an
important concessions. “If you can ‘t deliver the goods in 2 weeks than we
need additional discount of 2% to cover our stock management costs”
4. Narrowing
Starting from easy to agree issues and narrowing the disagreement to the
most important one. “If we did all these, can’t we agree on this one?”


1. Lost concentration (“Bus station”)
Permanently changing the environment trough the course of negotiations:
changing negotiating team members, inviting numerous experts, changing
meeting places/rooms, stopping – starting negotiations because of different
“technical” reasons etc.
2. Overreaction
Not adequate emotional reaction to offers, concessions or arguments of
opponents. “ You have to imagine me saying it to my boss. How I should
explain such your offer to him?”
3. Clarification
Permanently asking for clarification or additional substantiation of
position/argument/offer in order to minimize opponent explanatory power
and increase the chance of his mistakes



4. Bad conditions
Disadvantageous seating arrangements (uncomfortable chairs, opposite the
windows etc.), very early/late meetings, noisy/disturbing environment etc.

5. Changing the agenda
Skipping some issues, jumping back and forth through agenda of the
meeting, including not agreed points to the agenda
6. Overload
Overloading the other side with unnecessary, not important information,
(statistics, reports, presentations, site visits etc.) or hide piece of important
information in disproportional amount of non important one . Send information
on Friday afternoon requiring an answer on Monday morning etc.


Unfair or ‘’dirty’’ tactics in negotiations (1)
Misleading/lying :
1. Wrong information/ facts:
“This car belonged to an old lady who kept it all the time in her garage. It’s almost
bran new...’’
2. Limited authority:
“Last time we agreed on the issue but our boss does not want to give in on
this question..’’
3. Too easy to be true:
Your opponents taking the obligations too easy (they even do not plan to fulfill their
duties ) and require a real concessions from you in return

21

Psychological pressure:
1. Stress full environment:
Uncomfortable chairs, small and noisy room, too dark or blinded by the light etc.
2. Personal attacks, embarrassment, remarks:
Remarks : ‘’please speak louder, we can’t catch a thing…’’, ‘’your documents
submitted were a mess..’’, ‘’ information was outdated and unprofessionally prepared.’’
‘’bad hotel reserved…’’ etc’. ,

3. Threatening:
‘’ We tell about it to your boss, shareholders, clients, journalists’’,
‘’ We will go to your competitors, main rivals etc.’’

4. Corruption:
Usually the weakest member of your team, who has some
‘’history’’ or relations with your opponents, receives
“an interesting offer ‘’
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Positional pressure:
1. Refusal to negotiate:
For subjective reasons, like not met dates for drafts or samples submission etc., your
opponents are refusing to start negotiations
2. ‘’Spiraling’’ – the same requirements again
“Sorry, we agreed last time, but we can’t accept it in full. This time because of...’’

3. Playing with time:
“Only when you meet these conditions, we are able to
go further..’’
4. Unreal demands:
Opponent’s position is based on the terms you objectively can’t meet:
‘’If you can not do it in red color, we sent you the sample,
We can not pay this price..’’. You required to make more concessions
because you are ‘’failing to meet the agreed contract terms ‘’
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4 Ways to Defend

1. Ignore them
Ignore the pressure, don’t play according to their ‘’rude’’ tactics
2. Acknowledgement
In a friendly manner, without any signs of anger inform your
opponents that you understand their applied tactics

3. Request to stop
Make a firm and short statement asking opponents to stop their tactics.
Explain that it is counter productive and they will be responsible for the
failure of the negotiations and future of the mutual business relations

4. Termination of the negotiations
The most extreme way if others are used. In a calm manner inform the
opponents that due to their destructive behaviour and attitude you
terminate the meeting. Stay constructive and short, reconfirming that what’s
happening is their fault
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