Teacher Notes

1. They lie
Never let an obvious or a suspected lie go unchallenged.
A lie that you immediately recognize as a lie is best handled as a bluff unless it is
serious and an important part of the deal.
Always study those parts of the deal that are most important to you very closely. If
24 hour maintenance is crucial to the smooth running of your operation, triple check
their claim to provide such a service. If they are to be a huge customer and their
payments will be vital to your cash flow, check their payment record with others who
deal with them.
Challenge them to prove their ability to keep their important promises.
Arrange payment terms that will protect some of your money if things go wrong.
Make them sign guarantees.
Where the impact on your company would be very damaging if they have lied about
their ability to deliver on their promises, arrange some insurance.
2. They bring in the heavies
The heavies are other members of their negotiating team who you hadn't expected and
who authority is not clear until it is too late. For example, the accountant, someone
upstairs, the computer, industry precedents or the price list.
Fight fire with fire.
If they bring in their accountant, you get hold of yours.
If they need to clear it with the boss, be understanding and say you do too.
If they quote industry precedent, suggest it would be interesting to see how other
companies you have approached understand the precedent.
Finally, if there is any doubt whatsoever about who has the authority to make the
deal, get it down in writing with a clause that says that the signatory has the authority
to make the agreement. Make it look and sound very legal.
3. They agree "subject to ..."
It is a common and powerful tactic to claim that one lacks full authority to change the
terms significantly. So all agreements will have to be provisional, subject to the approval
of the board or the boss or a committee. What then happens is that the board or boss
or committee does not agree all the concessions given in the negotiation and some are
clawed back.
Ask if they have full authority to settle on behalf of their company.
If they say yes and you have your doubts then get it in writing. (Sorry about this, it's
just standard procedure. Here's my confirmation of authority for you.)
If they say no, you could demand to negotiate with someone who does have full
authority.
If this is not possible, make sure that you do not give away all the concessions you
are prepared to make. Keep some in reserve so that when the board or boss or
committee demand more, you don't lose out.
Lesson 2. Negotiation Skills 2-129 Copyright IBM Corp. 1999, 2001
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Teacher Notes
4. They play the reluctant buyer or seller
This is a guilt ploy. They try to get you emotionally involved in their decision-making
process. The reluctant seller makes you feel sorry for his/her circumstances. The
reluctant buyer makes you feel you are forcing him/her against their better judgement.
Remain neutral in your reactions.
Remind yourself that their decisions are their responsibility.
Try to keep the pace of the negotiation brisk.
Keep good records of what has been agreed.
Don't automatically accept their stated reasons for reluctance as the real barriers.
Only make concessions on what you believe to be genuine issues.
5. They try to intimidate you
If they force you to deal with a professional third party, solicitor, accountant,
consultant, etc. wheel in your own matching professional give you the support you
need.
If they quote their own experts' reports at you, pass them on to your experts making
no comment of your own.
If they try to control the agenda, timing or access to your experts, laugh it off with a
remark such as "You're joking" or "No way, Jose".
If they try to arrange an environment which is overwhelming or unsettling, either try to
get it changed explaining that travel or personal matters make it inconvenient or
arrive mob handed to give yourself plenty or moral support.
If they try to bully you, particularly if you are physically slight, quietly spoken or
apparently junior in your organization, use the stuck record technique. Firmly repeat
your refusal to their dictates and do not move on to another matter until they accept
it.
6. They keep making generalizations
Your demands or complaints are very specific and they keep talking about the "big
picture', principles and generalizations. If there isn't already an agenda, immediately
list specific areas for discussion.
When you hear a generalization ask a question that requires a specific answer.
They say "I think we should give up and try another tack".
You say "What specifically do you want to give up on?"
They say "There's no chance that we will agree to your demands".
You say "Which demands can you not agree too?".
You say "Your prices for bulk deliveries are still too high".
They say "We are having to review our transportation policies in the light of EC
regulations, it's not easy".
You say "What particular EC regulations are going to affect our deliveries - and how?
Always break down generalizations into their specific issues and deal with each issue
in its turn.
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Teacher Notes
7. You are 'Russian-fronted'
The present you with only two options. One is so awful (being sent to the Russian
Front) that you agree to the other. This can get quite subtle. If you feel that you are
constantly reacting to either/or suggestions, you are probably being 'Russian-fronted'.
This is an intimidation tactic based on threats because the awful option s a threat of
what will happen if you don't choose the other.
Don't accept either option.
Nod slightly and say "Yes, those are two possibilities. Let's look at some other".
Suggest some options of your own. They don't have to be perfect. It is just to show
that you have called their Russian-fronting bluff.
As soon as they start reacting to options other than their first two, you have
successfully countered the 'Russian Front'.
8. Boxing in
If they put themselves in a position where it appears impossible for them to budge from
their declared stance (the MD announces on TV news that not one penny more will be
offered to the truck drivers or the Company sells off its van so free delivery is no longer
an option) they have boxed themselves in. The intention is to adjust downwards your
perception of your strength in the negotiation.
Boxing in is a problem of their making, not yours. Ignore the tactic as if it hadn't
happened.
When they raise it is as a barrier to reaching agreement on your terms announce that
it is a tactic you have come across before and you never yield to it.
Spend a little time finding creative and face saving ways they can extricate
themselves (the truck drivers can have more if it is funded out of profits generated by
increased productivity or the Company will include delivery by a haulage company in
the price if the buyer tries to arrange his requirements so that deliveries are less
urgent).
9. They land a deadline on you
Always expect this tactic at some stage, don't let it surprise you. You could even play a
game with yourself betting when it is going to turn up.
Never appear to take it lightly.
Make a note of the deadline on your pad.
Avoid further discussion but become a little more brisk in your demeanor.
It is their deadline so it is their problem not yours. When the deadline is getting near
remind them that their deadline approaches ... and they will have to yield to meet it!
This solution calls their deadline bluff and puts you back in control of the time issue.
Lesson 2. Negotiation Skills 2-131 Copyright IBM Corp. 1999, 2001
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Teacher Notes
10. They issue an ultimatum
Never, ever, give in to an ultimatum.
Always remain calm and pleasant.
Stand up and start gathering your things to leave.
Usually they will call you back, modifying their approach.
If they don't, they will almost certainly contact you a day or two later to resume talks.
If they don't, it is unlikely that a satisfactory deal could have been struck anyway and
you have saved yourself time, hassle and money by walking out when you did.
11. They come in with last minute demands
Expect this one to come up fairly frequently, particularly when the negotiation has been
particularly tough or particularly easy.
You can show surprise but never show irritation or anger.
Demand extra time to think about this new issue.
Appear to treat it very seriously event if it is, in fact, paltry.
Show how it will force a change in your side of the bargain - these bulk boxes will
need a forklift to unload from your truck. 'Our operator is only available on Saturday
mornings so you will have to deliver then.'
If it really doesn't bother you, use it as a trade for something that does - 'OK, but only
if we can sign the agreement now' or 'OK if you can attach an itemised inventory list
to each box'.
12. They make a ridiculous offer
Recognize it for what it is - a ridiculous offer. Beware, an extraordinary number of
people fall for this one and the really good negotiators will never let on what they
would have settled on. It is often used to probe areas of suspected weakness. How
desperate are they to buy/sell etc.
Don't let the offer shift your belief of what is reasonable.
Don't react except to look as though you are taking it seriously.
Work out an equally outrageous proposition to better the deal.
If they don't accept your counter offer turn to other areas on the agenda and ignore
their offer from that point on.
If they bring the ridiculous offer up again explain that you assumed they were being
light-hearted so you left it. If they do mean it, you say, then we are too far apart to
continue. This will call their bluff and if they want the negotiation to continue they will
begin to back down.
13. They disrupt the deal with imaginary (or real) crises
You must recognize this tactic for what it is - an alteration of the basic terms of your
agreement.
Their crisis is not your responsibility and it should not be your problem.
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Teacher Notes
Be co-operative and helpful but on your terms - turning the tables on them in the
process.
Example 1
It is a quiet month and cash flow is a bit delicate (implication that service might not
be brilliant for a while if they have to cut costs) could you possibly pay them now
rather than at the end of the month. This request often comes in a friendly, chatty
phone call from their MD to your manager most likely to suffer from poor service.
Say "Yes, of course, but this will push us into similar problems in July when we will
have to take an extra 30 days".
Example 2
Their computer has crashed and they can't access your account to pay you on time.
This information usually reaches you as a telephone call from a flustered junior
bookkeeper who sounds close to tears.
Get your senior financial officer to fax them back regretting that the debt is in the
system and on its way to the debt collector but that the exact amount owed is ... A
cheque on his or her desk by the next day will be needed to halt this process - which
is also computerised.
Example 3
They are overstocked and want you to take extra before their end of year audit.
Agree but establish that the invoices will be post-dated. Remark that you will, of
course, only expect to pay the old price on old stock.
14. They cheat on the spirit of the agreement
These people often behave very well in negotiations initially. Their bad behavior tends
to be subtle and cumulative. It is difficult to know when to say "enough is enough".
Typically they have faulty memory, forgetting agreements made earlier in the negotiation
and swearing blind you agreed to something last week that you have no recollection of.
They are also inclined to record quotes based on volume or frequency and then try to
apply that price to one-offs. And on payment terms they will happily accept 30 days and
then take 60 or even 90 because that is standard industry practice.
As soon as you smell a rat formalise your note taking. Instead of seeing you make
scribbles on your pad they will now be aware of full notes being taken and typed
copy of the meeting's agreements distributed within a few hours.
Negotiate sticks as well as carrots into the agreement - interest charged on unpaid
accounts over 30 days for example.
Alert your staff to the likelihood that these people will constantly try it on.
If you decide to pull the rug on them - tell them why but don't get involved in
protracted debates or recriminations.
Lesson 2. Negotiation Skills 2-133 Copyright IBM Corp. 1999, 2001
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Teacher Notes
15. They say they can't afford it
Anticipate this one at some stage and don't be thrown if they sound very sincere, very
angry, very disappointed or very believable.
Don't believe them.
Don't believe them.
Don't believe them.
Don't make any comment or particular reaction to their plea.
Change the subject to a different area of the negotiation for a while then ask for a
break.
When you return offer them the same deal in a different package - a lower price for
shorter credit terms, longer delivery times or standard colors for example.
16. They won't budge on price
In daily life you accept this without question. The price of your groceries, a compact
disk, a pair of shoes. With large items you look for added extras - a metallic finish on
your new car for the same price as a conventional paint job, carpets and curtains in the
house when they were specifically excluded at the beginning etc.
Don't let this training lead you to believe that a fixed price ultimatum is inviolable.
Don't challenge the price.
Lull them into a belief that you are interested in buying by asking some questions
which are easy to answer positively - can you deliver from stock, is there a parts
guarantee, have you any endorsements from existing users etc?
Just accept their answers with a deadpan expression and no comment.
Then move on to some questions which put indirect pressure on their fixed rice
stance - could we save money by accepting packs of ten rather than packs of five,
could you let us have a hand binder on permanent loan if we take 10,000 cover
sheets as a first order, could we upgrade the binder strips for the same price etc?
Again accept their answers with a deadpan expression and no comment.
When you have asked all the questions you are going to, pleasantly take your leave
of them.
Probably five times out of ten they will ask you to stay or call you back soon after
your departure. They are convinced that you want to buy and will probably shop
around on price. This is often enough to make them crumble on price.
17. They make empty promises
Watch out for this one when they seem to have a particularly friendly "we are all in this
together" attitude. They will often seem to take vague offence at your note taking and
will frequently make remarks such as "If we can't trust each other, who can we trust?" or
"Business on a handshake, that's what I like". Their letter confirming the deal will be
very short and baldly stating the essentials. You, however, will understand that a whole
lot more than that is part of the deal - additional orders in the future, prices held for a
few years, service engineers on 24 hour call, the inside track on some of your
competitors, you will be dealing with the boss not a minion.
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Teacher Notes
If none of these promises appear in writing, don't believe them.
Assess whether they are important to you or not.
If they are important, make them part of the written deal.
If they are not, verbally and in letters, remind them of them on a regular basis (it may
not work but sometimes you can shame them into delivering some of their promises).
18. They call your bluff
Or you call theirs, for that matter. The danger of this situation is that it involves terrific
loss of face and that can stall or sour negotiations.
Use gentle humor to imply that you were not particularly serious for example:
"Hey, 'take it or leave it' was just my opening offer!" or "I said not a penny more, but
we can still talk about the dollars!" or "We do have no major competitors, the minor
one are plenty hot stuff thought!"
And use humor to call theirs. For example:
"You're the only people who can provide this service? That's what they said about
British Telecom" or "You can't possibly go any lower? That's what they said about
the pound last October!"
If the bluff is threatening, treat it more seriously, implying that they haven't thought
through the consequences properly. For example they could meet the price demand
if they used inferior materials:
"If you do cut quality to maintain your margins you can be sure that your customers,
the trading standards officer and your trade association would be very quick to
censure you".
Or the funding for your low price would have to come from their wage bill "Can you
imagine what the press would say if they discovered you laid off one man just to
clinch our order".
If one of your threatening bluffs is called, excuse it as an illustration of the severity of
their demands. For example:
"I didn't say we would ever compromise quality or safety, I just wanted you to see
how slim the options are."
But remember. Your failed bluff will encourage the other side to get tougher.
19. They demand linked deals
While lining agreement to two separate issues within the same negotiating package (we
will negotiate on the price of this fax if you we can include discussion of the price we
charge for your photocopier maintenance) can allow plenty of room for trade-offs, it is a
tactic that works best for the weaker party to a negotiation. As a buyer you are usually
better off dealing with one issue after another. The risk of linkage is that deadlock on
one can put concessions won on others in jeopardy.
If they asked for a linked deal, they probably feel in a relatively weak position.
If you don't think linkage will be in your interests too, refuse it firmly.
Toughen your stance on all issues from this point on.
Lesson 2. Negotiation Skills 2-135 Copyright IBM Corp. 1999, 2001
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Teacher Notes
20. They use biased experts
When impartial experts are wheeled into a negotiation it is safest always to assume
some unconscious bias and try to work out what it might be. Typically the bias will be
because of a conflict of interest, because the expert is not familiar with your sort of
business, or because of a personality clash.
Don't let interested parties choose the experts.
Check the experts' credentials.
Be alert for signs of bias. Cynicism is not fun but a healthy dose of it is worthwhile
when outside experts are involved.
If you feel the expert does not have a good grasp of the subject insist on one or two
other opinions.
Don't allow the experts to comment on subjects outside their area of expertise
(lawyers, particularly, seem to like to tell sales, marketing, and customer service
people what they should be doing).
21. "The accountant insists" ploy
This usually happens at the last minute. The other side introduces changes based on
the demands of an outside authority such as a bank, accountant or solicitor and it is
usually presented as a 'take it or leave it' situation.
Don't panic. The success of this ploy relies on you panicking.
Smile and calmly request a break to discuss the development with your own people.
Categorise the demand - is it a last minute demand (no. 15), a deadline (no. 26) a
deadlock (no. 16) or a bluff (no. 13).
Work out the appropriate response.
Include testing them (suggest no deal), calling in your own experts to question theirs
and remaining pleasant.
22. You learn something to your advantage
What's so dirty about this? Is positively reeks if the information has been planted. You
may be lucky but it pays to be fairly disbelieving.
Never accept the information landing in your lap as a stroke of good luck.
Is it a double-agent ploy - did you come into possession of the information
because someone on the other side slipped up? It was probably deliberate.
Challenge them with the information. Ask if it is true and accurate.
Their response should be noted down.
Then continue your negotiations which now include this information.
Is it the open-folder ploy - did someone on the other side carelessly leave a memo,
chart, report or whatever uncovered while out of the room? It was probably
deliberate.
You shouldn't have peeped so you can't really challenge it.
Double check the information any other way you can.
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Teacher Notes
Is it the coincidence ploy - the other side claims to have someone else interested and
shortly after you hear the same thing from a neutral third party. It is almost certainly
a set up.
Check the neutral third party's sources.
Unless they are absolutely reliable and neutral, discount the information.
Is it the beyond-our-control ploy - outside events seem to play right into your
opponents hands (the cost of wood pulp suddenly goes up while you are trying to
close a bulk printing deal). They almost certainly knew it was about to happen and
controlled the timing of the negotiation to take advantage of it.
Insist that this changes nothing.
Preparation before starting the negotiation should have thrown up this sort of
information, so always check your what is happening in your opponent's line of
business.
23. They sell the sizzle, not the steak
Related to empty promises (no. 29), this ploy is to encourage false illusions. It plays on
your ego, your self image, your dreams and your frustrations. If they discover what
particularly turns you on, they will encourage you to see their product or service as a
way of achieving your goals.
Sizzle relies on you providing the dreams and the ammunition. If you catch yourself
thinking "they don't have a track record but I like their attitude" or "this computer
purchase will put us streets ahead of the others in state of the art technology" or "It
would enhance my position in this company" then you are being sold sizzle.
Beware idle small talk before negotiations get going. They may indulge in friendly
chat to find out your interests, your feelings about your family, your political
persuasion and any particular hobby-horses.
Give as little away as possible and always turn the probing back to them. "Hobbies?
Oh nothing much, what do you do to relax?"
Always listen for sizzle and discount it. "It will bring a breath of fresh air into your
company", "Your colleagues will justifiably go mad with envy", "It's not the cheapest
but the 'green's in your company will love it".
24. They force you into a mistake
Many of the dirty tactics in this report are designed to push you into decisions which are
not to your best advantage. Although forewarned is forearmed you would have to be
superhuman to get it right all the time. You will make mistakes.
Always recheck the basis of agreements made as soon as you have some quiet time
to do so.
If there is no time in the agenda "Let's get this sorted by lunch time shall we",
demand some "I will need two breaks of at least 15 minutes to make contact with my
people".
If you have agreed to something you regret, go back to it.
Use an apologetic but firm demeanor "I need to go back to the delivery schedule.
I'm sorry but I was working on wrong information. I will need twice weekly deliveries
Lesson 2. Negotiation Skills 2-137 Copyright IBM Corp. 1999, 2001
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Teacher Notes
of ten units rather than just single weekly deliveries of fifteen. Can we change that
on the notes please".
Don't offer any trade off for this change.
Expect, but don't take seriously any attempt by the other side to penalise you for the
change unless it is obviously going to involve them in considerable extra expense.
25. Open threats
These may be threats against you "If you don't agree to this we will have no option but
to report your intransigence to the Board"
...against your company "If you won't discount any further we will buy from another
supplier". "If you don't accept our terms you will have to look elsewhere but you will find
that we are the only people able to meet your specifications".
...against any future business together "If you won't hold your paper prices for another
12 months we will have to take all our business elsewhere".
...or blackmail "If you don't give us the terms we need we will stop you doing business
with every other company in the group/trade association/area".
Whenever you hear a threat become very grim and quietly say "I see".
Jot down the disadvantage to them of actually carrying out their threat.
Jot down some advantages to you (yes, there usually are some) if they carried out
their threat.
Using these notes as your moral support, counter their threat by implying that it does
not overly concern you if it is implemented "As you wish. My chairman remarked
only the other day that I was chosen to negotiate for the company because of my
firmness" or "I'm sorry if you have to do that, both of us have put a lot into this
negotiation so far" or "That would be inconvenient! But as I never, ever negotiate
under duress it seems that I shall have to rely on our in-house facilities on this
occasion".
Then offer a face saving way to return to sensible negotiation "Shall we leave this
issue for a while and concentrate on something else" or "I know you wouldn't have
said that if you could see any alternative. I'm sure there is one, let's try again".
26. Either - or
This tactic is designed to keep the initiative with them. They sound very reasonable,
offering you alternatives to choose from. You can spend the whole negotiation selecting
the best option and feeling that you are getting a deal tailor-made for you. What is
happening is that you are being side-tracked from coming up with any suggestions of
your own. There is no incentive for you to challenge their assumptions.
Whenever you hear an either - or, throw in a third, fairly way out, option of your own
"So you can deliver on Wednesdays or, if I prefer, Mondays. Can you deliver on
Saturday mornings?"
If they agree, it means that when they deliver is not important to them so don't let
them earn concessions from you on that issue.
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Teacher Notes
If they demur, imply that this as quite a drawback and either use it to lever the
delivery day of your choice or agree to one of their days as a concession they will
have to pay for later.
Never let them keep the initiative of an either - or. For a more extreme example of
this technique see no. 53.
27. They deliberately misunderstand
You think it is all cut, dried and agreed and then they add on extras. "We naturally
assumed you meant your price to include delivery" or "We thought you were aware that
individual boxing would cost extra".
Always get the details agreed to down in writing.
If you didn't and they are trying it on, refuse the extras firmly.
Re-open the negotiations on the basis that the whole deal will have to be reviewed if
these extras are not included.
No matter how urgently you need the stock, never appear flustered or harried.
28. They are high handed
This is a tactic of intimidation. They hope that their arrogance will give you the
impression of an enormous imbalance of power in their favor. It can often work when
they do already have some degree of authority - a landlord for example, a trade
association of which you are a member, an auditor or a bank manager.
Appear to ignore their high handedness.
Jot down a list of advantages you have over them - it would be horribly expensive for
the landlord to kick you out, you pay the auditors' salaries, there is more than one
bank etc.
Act as though you, in fact, are in the superior position.
Respond to their demands with polite impertinence. They write "Please attend a
meeting at headquarters 2pm Friday 5th" You reply "Thank you for your suggested
date for the next meeting which is, unfortunately, not possible. Please ring my
secretary to arrange a mutually convenient time".
29. They use sweat tactics
There is a particular type of negotiator who will jump into any opening you give and
make you sweat it out. The smallest hint that you are anxious to get the negotiation
over with quickly and they slow down.
If there is any legal doubt about the deal (are you sure the house is yours to sell, do
these widgets conform to EC specifications) they will push for guarantees and
undertakings that you don't want to live with.
If they catch you being vague about the detail they will fill in the gaps to their advantage.
Lesson 2. Negotiation Skills 2-139 Copyright IBM Corp. 1999, 2001
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Teacher Notes
If you lose your temper and start accusing them of bad faith, cheating or sharp practice
they will counter with the news that a libel action is being considered by their lawyers.
Preparation is the best defence. Don't give them any openings.
If they start using this tactic, keep you cool.
Get someone else in your company to source other suppliers and set up meetings
with them.
Then call their bluff. Announce that you recognize the tactics, you are not prepared
to negotiate in an atmosphere so lacking in co-operation and goodwill. Give a
summary of what has been agreed so far and suggest that you all give it another try.
If they do not improve cut free and try one of the alternative suppliers you have lined
up.
30. They seem terrifically nice
This tactic is designed to lull you into a much softer stance. And it is very powerful
because it is based on our need to be liked. It also indirectly uses your sense of fair
play to put pressure on you to reciprocate.
One of their team may try flirting with you. They flatter you with reports of the good
things they have heard about your company. They offer unsolicited favors unrelated to
the matter in negotiation (they will have found out your interests and hobbies by now).
They will seem very flexible and easygoing "As you wish", "Whenever is best for you",
"Just tell us how you would like it".
It doesn't matter whether their niceness is genuine or not, don't lose sight of your
negotiating stance.
Accept their niceness graciously but remain very firm.
Keep accurate notes. It is more difficult to challenge someone who is being very
nice and acts hurt when you question their interpretation of what has been agreed.
No matter how nice you are, don't let their niceness make you feel obliged to make
concessions.
31. They demand little extras at crucial points
This is also known as nibbling. The requests for small extra concessions, usually
seemingly inconsequential, come just as you are about to agree on issues that are
particularly important to you.
For example:
They are just about to agree a 20% discount for your bulk order and they ask at the last
minute "can we deliver on shrink-wrapped pallets rather than in cartons?" You are about
to get the discount and it is no skin off your nose so you agree - and in doing so have
thrown away an opportunity to negotiate something in return.
When they are on the point of agreeing two deliveries a week for the same carriage
charge you expected to pay for one delivery, they say "you will have someone there with
a forklift to help with the unloading, won't you". As you have a forklift and a qualified
driver working in your warehouse you agree without a second thought.
2-140 Commercial, Negotiation and Presentation Skills Copyright IBM Corp. 1999, 2001
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Teacher Notes
When they are on the point of agreeing credit terms of 30 days rather than the industry
standard of 15 days they say "we will need your bank details for the direct debit, of
course". You agree "Of course".
They have just nibbled a huge reduction in their packaging expense; the cost of a
driver's mate; and in reality, no change in payment times (direct debit on day 30 is
usually as quick into their bank as clearing your cheque which you probably didn't write
till day 18, posted on day 20, was banked on day 22 and cleared on day 29). What
have you got in return? Nothing. You gave it all away without getting anything in return.
The solution is to look surprised.
Say "No, the agreement was ... wasn't it" in a pleasant but firm tone of voice.
Then ask "is this a problem for you?" and take the negotiation on from there, making
sure you earn a concession for each nibble.
32. They suddenly turn nasty
There may be a number of reasons they do this. they may be feeling frustrated. You
may have hit a nerve. They may feel drastic action is required to move the negotiation
forward. They may be feigning it to push you into making a mistake.
The more abusive they become, the cooler you must be.
Never, ever be tempted to match fire with fire or to give as good as you are getting.
If you feel it getting to you personally, tune out mentally for a moment to let your
anger pass.
Whenever you can get a word in edgeways say something like "Now stead on" or "I
am willing to discuss this when you are".
If it continues, either walk out with a brief "Excuse me a moment will you ..."
Or arrange a break in the negotiation to give them time to cool off. This could be
simple - knocking something off the table, sneaky - press the beeper on your pager,
or straightforward - you promised to check in with your secretary at this time.
Make notes of what they are saying.
If they ask why, explain that you need to note exactly what they are claiming in order
to understand their position. This should make them think twice about their behavior.
When you return to the negotiation, remind yourself that you are now in a stronger
position as they have lost face and probably shown more of their hand than they
should have.
33. They give you the silent treatment
They say very little. they keep deadpan expressions on their faces. They meet every
statement you make with silence or a non-committal grunt. Just as you feel you should
give up they smile and say something like "perhaps you would like to say a little more
about that". The intention of this tactic is to intimidate you into saying a lot more than
you intended.
If you get no reaction when you want one - ask for one "I would like your views on
my last remark".
Lesson 2. Negotiation Skills 2-141 Copyright IBM Corp. 1999, 2001
Course materials may not be reproduced in whole or in part
without the prior written permission of IBM.
Teacher Notes
Interpret their silence to your advantage and tell them how you read it - "I intend to
note your silence/lack of response to this point as acceptance/as lack of interest/as
open to further discussion.
As soon as you feel their silence getting to you, stop talking.
No matter how uncomfortable it becomes, shut up, sit back with a pleasant
expression on your face and wait for them to break the silence.
This will usually put an end to their use of the tactic.
34. They drag their feet
If you have revealed that you are in a hurry to close this deal, they may well slow things
down to put pressure on you to give more concessions. They may, however, simply be
too busy to move on your negotiation any faster than they are doing. Try to work out
why they are dragging their feet.
Ask them outright if there is any reason why they are taking longer than normal to
make decisions etc. then ...
Offer to tie up all the loose ends for them - prepare the agreement for signature,
collect guarantee forms, check legal issues, fill in bank mandate forms etc.
Arrange a 'crisis' which requires you to 'either close this thing by the end of tomorrow
or postpone till I get back in a couple of weeks'.
This will flush them out if their feet-dragging has been a ploy to wear you down.
35. They threaten to go over your head
This is an intimidation tactic. You probably last heard it in the playground as "I'll tell on
you!" They may threaten to go to your boss, to 'take it higher', to report you to the
Authorities or to 'tell other people'.
Contain to your reaction to the mere raising of an eyebrow.
Either walk away or gather your papers to show you are leaving.
Create a break by leaving the room for a while with a reasonable excuse.
When you return encourage them to explain what is causing them to take this tack.
As soon as you can, discuss the situation with, if possible, the very person they are
threatening to complain to.
36. They point-blank refuse your offer
Receive their refusal calmly.
Don't acknowledge it directly. Smile and say something like "Can you tell me a little
more about your ... (something in their business but not directly linked to the offer
being refused).
Never challenge their refusal.
Continue as a conversation, moving towards the issues in the refused offer.
Get them to explain how their systems work and why they 'can't' agree to what you
are proposing.
2-142 Commercial, Negotiation and Presentation Skills Copyright IBM Corp. 1999, 2001
Course materials may not be reproduced in whole or in part
without the prior written permission of IBM.
Teacher Notes
Explore creatively with them ways in which they can achieve what you want (it may
be that the way they cost a job can be adjusted, that the way they usually calculate
their margins on bulk deals is 'inappropriate' on this occasion etc.)
Focus all your efforts on finding ways they can back track without losing face.
37. The 'Oh dear' ploy
This is a tactic to wring just a little bit more out of you just as you are relaxing having
agreed the deal. Something has happened (a sudden rise in interest rates, an increase
in tax rates, a surcharge on goods coming from Iran, a supplier collapse in Taiwan) and
they will have to pass the extra cost on to you if the deal is to stand.
If you are desperate you can pay up for the first delivery and then cancel the rest of
the deal and start negotiations with another supplier.
If you have time be firm.
Source other suppliers and get negotiations started with someone else.
Refuse to pay a penny more than already agreed to the 'Oh dear' merchants.
Explain that it is their responsibility to negotiate with their suppliers.
If they refuse to fulfil at the agreed price, cancel the deal and close with the new
suppliers.
38. They ask for a thank you
As the deal is agreed and you are feeling relieve they point out all the things they did to
help you get what you needed. then they ask for a personal favor in return. It is usually
to do with future business - "sign this provisional order form for next month, it will mean I
earn my bonus this month and I want to take the kids on holiday" or payments terms - "I
know we are on 30 days but it would be a terrific help if you could give me a cheque to
cover the first order, just to cover me while we set up the account".
Pause to make sure you understand the real costs to you of saying yes.
If you agree, make sure you understand that this is a tactic that will be used on you
every time.
If you decline, say no firmly and pleasantly, 'it is not part of the agreement' and then
make a short, genuine and friendly speech about how you hope that this is just the
start of a long, happy and mutually profitable relationship between the two
companies.
39. The golden rules
Rule No. 1
Always, take good notes while you are negotiating, write them up properly and give a
copy to the other side at the beginning of your next session.
Rule No. 2
Lesson 2. Negotiation Skills 2-143 Copyright IBM Corp. 1999, 2001
Course materials may not be reproduced in whole or in part
without the prior written permission of IBM.
Teacher Notes
Before you start any negotiation always spend some time, if only a couple of minutes,
working out your BATNA (Best Alternative to a Negotiated Agreement). What will you
do if you can't reach agreement?
Knowing your BATNA removes almost all the pressure from the negotiation. Because
whenever the other side presses for significant concessions, you simply measure them
against your BATNA and you will always make sound negotiating decisions.
2-144 Commercial, Negotiation and Presentation Skills Copyright IBM Corp. 1999, 2001
Course materials may not be reproduced in whole or in part
without the prior written permission of IBM.