Tag Archives: Business Negotiations

Strategies for Negotiations

Let’s review some negotiating strategies.

1.Leave yourself room to negotiate –but don’t be ridiculous. Always give a reason for your position.

2. Be stingy with your concessions. Always consider your concessions as a “message” or information you are sending the other side.

3. Always tie a string to your concession and ask for something in return. This communicates to the other party that you don’t have a lot of room to move; it communicates good will and your willingness to cooperate; and it introduces a talking point that might gain you additional information regarding their position. This new information could lead to a totally new solution. A solution you might have not considered before.

4. Patterns or rates of concessions are important. Always use declining numbers; don’t always use whole numbers/percentages; don’t match the other person’s concessions—–instead say: “I can’t afford to match that, because . . .”

5. Always provide reasons for the positions you take. This communication to the other party can encourage them to introduce new information that could create better paths to agreement and a better solution.

6. If you can, always get the other side to state their position first/make the first concession/or put out the first number. You may be surprised to find that the situation is better than what you anticipated. This information permits you to modify your response and change your negotiating strategy.

7. Consider the pressures ‘Deadlines’ can cause. Can you relieve your pressure by changing the Deadline? Can you cause pressure on the other side by enforcing a deadline?

8. It is generally wise to “Say NO once more” before coming to agreement. There usually is a way to make the deal a little bit better—for both sides.

9. When the opportunity presents itself, use the Considered Response, Limited Authority, Power of Legitimacy, the Bogey and the Flinch. They really do work and will provide you more negotiating power and create the opportunity for you to learn new information.

10. Remember “Catch Twenty-Two.” Being real smart in the negotiation can be kind of dumb. Being a little dumb can be very smart. Don’t know everything. Ask the other side to help you ‘understand.’ This conversation may open up avenues to agreement that you had not considered before.

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