Negotiation’s Techniques

Brooklyn optician
Description
Break everything down into small packages and
then negotiate them one at a time. If you are
selling things, price them individually.
Focus first on selling or negotiating the main
item. Then show that extra parts are needed.
Avoid talking about the total cost until you have
agreed each item.
Example
The computer, sir, will cost three hundred.
You'll take that -- good. Will you be
needing a keyboard with that -- only
twenty. And we've a good deal on an
optical mouse...
Will you take the kids to school -- thanks.
Whilst you're out, can you get some things
for me.
A restaurant prices its main course
without any vegetables, which are each
priced separately.
Discussion
The name of this tactic comes from a (probably
politically incorrect) archetype of an optician who
sells you a pair of glasses one lens at a time.
When people are buying something or otherwise
getting something in a negotiation, they will start
with a rough price in mind. When they see the
offered price, they will be impressed by the
contrast and will rapidly reach closure on it. Once
closed, they will unwilling (or maybe unable) to
re-open the negotiation. They are thus trapped,
and are forced to pay the extra amount for the
other items that they now need.
Dry well
 Description
When the other person demands more from you,
say that 'the well is dry' and that you do not have
anything else to give.
Plead poverty or other constraint on your ability
to exchange more than you have already offered.
Example
Sorry, I can't afford any more.
I'd like to increase my offer, but I'm afraid
I've come to the end of my resources.
Discussion
When you show that you have no more to give,
the other person cannot demand more without
inferring that you are lying.
If they still refuse to agree to a deal, then this
puts you in a difficult position of possibly showing
that you were not telling the truth. One way
around this is to find other variables to use.
Empty pockets
Description
When the other person makes a demand on you,
say that you cannot afford it, you have not got it,
cannot do it, or otherwise are unable to give
them what they want.
Show that it is a lack of ability, not lack of desire,
that leads you to refuse them.
Example
Sorry, that's just too much. I really cannot
afford that on my salary.
I'd love to help, but I don't know much
about that.
If I had it, I'd give it to you.
Discussion
Showing that you cannot fulfill a request is a good
way of refusing, as the other person then cannot
persist.
Pleading poverty may also get you sympathy and
give reason for the other person to ask less of
you.
Good guy/bad guy
Description
One person acts in an aggressive and pushy way,
making unreasonable demands and requiring
compliance.
The other person then acts in a kind and friendly
way, asking nicely -- and getting compliance.
The good guy (or gal, of course) may apologize for
the bad guy, or plead for compliance because the
bad guy is being horrible to the good guy too.
You can even do it as one person: be unpleasant
and then apologize (you are under such stress)
and ask nicely for what you want.
Example
A husband and wife go out to buy some hi-
fi speakers. He acts in an aggressive and
dominant way, complaining about the
price and the sales person's
'condescending' manner. She takes the
sales person aside and apologizes for her
husband and whispers a price at which she
thinks he will buy.
 A senior manager makes a presentation in
an unpleasant and aggressive way,
demanding that tough goals are met. A
liked line manager meets with her people
afterwards and says that if the goals are
not met then she will be punished.
Discussion
This is a classic implementation of the Hurt and
Rescue principle, which is a core element of many
persuasion methods. The bad guy acts to cause
discomfort and tension, after which the good guy
offers escape and closure.
This is often seen on TV in the good-cop/bad-cop
routine that is often seen in police dramas. It can
also be a subconscious pattern for parents, where
one parent tries to impose discipline by
demanding compliance after which the other
seems to get it easily by gentle request.
What the good guy says often gives the target
person an excuse to comply, allowing them to
rationalize their action and retain dignity.
Sometimes the person complies with the good
guy as an act of revenge to 'teach the bad guy
manners'.
Highball
 
Description
This is a tactic for sellers, where you make your
first offer as high as you dare.
This can be helped by determining what
constitutes a reasonable range of prices, so do
your research beforehand to find the buyer's
zone of acceptability, then start at, or even above
the top of their range.
Be careful about asking the other person what
they will offer, as their first bid anchors the
discussion, quite possibly on the low side
(although if they seem particularly keen to settle,
asking them might give you a pleasant surprise).
Example
A child who wants a parent to fund a night
out starts by asking for about three times
as much as they really want.
When selling goods, a market trader starts
with a high price. He then reduces the
price without being bargained with, using
excuses about being kind, needing to sell
everything today and so on.
An estate agent takes buyers to houses
that they cannot afford. This, however,
raises their desires and the house they
eventually buy is more expensive than they
had anticipated.
Discussion
Where you start sets expectations for the other
person. When you start high, you can always go
down. When you start low, you can never go up.
Starting high creates an anchor for the other
person, whereby they may well assume that this
is in a reasonable range. If their counter-bid is
also high, then you will end up with a high price.
Even if they are above what you expected, do not
settle immediately -- at best split the difference
and you may be able to nudge them even higher.
A high start may well take longer to reach
resolution, giving you more opportunity to find
out more about the other person and to build
effective tension.
If the other person starts low, then it may be
socially difficult for you to counter with a high
bid, although this can actually be a good move.
Responding to a low bid with a high bid indicates
that you know they are low and may be seeking
If the other person counters with a low bid (or
starts to walk away), this may be a signal that
they know what you are doing. Hold your nerve!
If you collapse your position, they may well take
advantage and seek to pull you even further
down.
Be careful about starting too high, as this may
cause a betrayal response whereby they leave
without further ado, ignoring anything you may
say. Extreme positions outside of a range that
may be considered fair can also be damaging to
relationships (which may be important).
The difference between your start position and
your end position is a signal to the other person
about how much you have conceded to them. A
significant difference will make them believe they
have got a bargain (a view you can encourage
with sighs and supporting words).
Leaking
 
Description
Let misleading information 'leak' out from your
side.
Let them overhear you talking about particular
(but false) needs or strategies that you have.
Leave documents on the table that they might
read or copy.
Let something 'slip out' during conversation.
Have a person on your side 'sympathetically' tell
them something.
Example
In a negotiation I have my papers flat on
the table with a highlighted section that
can be easily read upside down.
We have a corridor conversation near
where they are having coffee -- we get
excited and voices get raised...
Discussion
When people receive 'leaked' information, it can
be very exciting for them as they believe they
have a significant advantage over you. This leads
them to focus largely on these areas -- and
consequently avoid other areas (where perhaps
you do not want them to go).
When the leak proves eventually to be false (if
they ever find out this), then they are unable to
complain, for to do so would be to admit
deceptive and possibly criminal behavior.
Lowball
 
Description
This is a method for buyers, where you start your
bidding particularly low.
When negotiating a price on something, for
example, it can help to know what constitutes a
reasonable range of prices, so do your research
beforehand to find the seller's zone of
acceptability, then start at, or even below the
bottom of their range. This may be justified with
an argument about why you are offering so little.
Be careful about starting out asking the other
person what their price is, as this will anchor the
discussion (and their expectations) at a higher
price.
Example
My son wants to stay out late, coming
back at 3am. I start by saying that I want
him back at 10pm. We settle on midnight.
Sorry, sir, there's no call for these thing
nowadays. It's damaged, too. The best I
can offer is...
A car dealer phones around personal
adverts of individual selling cars, making
very low offers. If they are not immediately
rejected, they follow up to see how low a
price they can get.

Discussion
Where you start sets expectations for the other
person. When you start low, you can always go
up. When you start high, you can never go down.
Starting low creates an anchor for the other
person, whereby they may well assume that this
is in a reasonable range. If their counter-bid is
lower than you expected, then you will end up
with a good price. Even if they are below what
you expected, do not settle immediately -- at best
split the difference and you may be able to nudge
them even higher.
A low start may well take longer to reach
resolution, giving you more opportunity to find
out more about the other person and to build
effective tension.
If the other person counters with a highball (or
starts to walk away), this may be a signal that
they know what you are doing. Hold your nerve!
If you collapse your position, they may well take
advantage and seek to pull you even further
down.
Be careful about starting too low, as this may
cause a betrayal response whereby they leave
without further ado, ignoring anything you may
say. Extreme positions outside of a range that
may be considered fair can also be damaging to
relationships (which may be important).
The difference between your start position and
your end position is a signal to the other person
about how much you have conceded to them. A
significant difference will make them believe they
have got a bargain (a view you can encourage
with sighs and supporting words).
No authority
  
Description
Refuse to give in on items based on the fact that
you have not been given authority to do what is
being requested by the other person.
You can, if you wish, offer to take the request
back to that authority for consideration (and, at
the next meeting, tell them that the request has
been turned down).
You can name the authority, particularly if the
person named is known and has a high position.
Example
Sorry, I only have the authority to spend
up to a thousand.
I'll have to ask your mother about that.
I'd love to give you that, but I don't think
I'd get away with it.
Discussion
When you claim that you do not have authority
to make a decision, then this effectively prevents
the other person from disputing your decision, as
the authority person is not there.
If you use the name of a person in particularly
high authority, then you gain by proxy a certain
amount of that authority, and can make more
demands than you might otherwise.
Claiming no authority can cause problems when
the other person asks to deal with the person in
authority. For this, you will have to be able say no
(you do have authority for this!).

Red herring
 
Lay a false trail that the other person will follow.
Make sure the trail goes away from the things
you do not want them to discover.
If you want them to waste time, make the trail
long.
If you want them to expend effort, make the trail
difficult to follow (but with enough interesting
clues to keep them sniffing.
You can highlight 'problems' which turn out not
to be problems (after a degree of examination).
Be careful to retain credibility, for example by
referencing the trail through other people.
Example
A company shows some interesting, but
minor problems to an auditor, distracting
them from the really serious issues that
may be found elsewhere.
There might be a problem with the
paintwork, let's look...No! The paintwork
is, in fact, perfect.
Discussion
Laying a false trail leads people away from areas
that you do not want them to see. To do this, the
trail must be of sufficient interest that the other
person misses any clues to other areas.
Red herrings are particularly useful when the
activity is time-bound -- that is, time spent
following the red herring is time that can not be
spent in other areas.
Talking about problems that are not really
problems has effects beyond distraction. For
example, it may show you in a positive light as
willing to highlight issues that may count against
you. Also, the relief that problems are not
problems creates a sense of closure that easily
becomes agreement to the deal.
If the other person realizes that it is a deliberate
red herring, they may be very unhappy about
this, so it should either be cloaked carefully or
you must be protected from any anger.
Russian Front
  
Description
Offer them something that they will never
choose. Dress it up so that it seems more
reasonable (at least that it is reasonable that you
might offer it to them).
Make it seem inevitable. Show how it is going to
happen. Paint the picture of pain.
Then offer them the alternative that you really
want them to choose.
Example
Well, I do hear they need people with your
talents down in Sewage Maintenance, and
there are openings there -- the last guy
ended up in hospital. Though I've also got
contacts in reception -- would you like me
to ask them?
You can go to bed now ... or you can clean
up this mess.
Uh oh. You've done it now. Michael will
not like that. And he's coming down in ten
minutes. Tell you what: there is something
I can do...
Discussion
One of the things that many German soldiers
feared in the second world war was being sent to
the Russian front, where you was as likely to die
from the cold as from a Russian bullet (and the
Russians were pretty mad at being invaded, just
as they were when Napoleon tried the same
trick).
Offering something that is clearly undesirable
creates panic and discomfort. This causes people
anxious to get away from this -- to the point
where they are looking more at what they are
avoiding than what they are getting instead.
This is an application of the Hurt and Rescue
principle and also the Contrast principle. The
Russian front provides the pain, against which
any alternative sounds wonderful.