13 negotiation tactics and how to overcome them

To be ready to react to their negotiation tactics.

Here’s what they’ll try, what they’ll say – and the best ways to respond.
Good buyer, bad buyer
Strategy: The buyer has been the good guy all along, agreeing to mostly
everything you propose. Then at the last minute in negotiations, she introduces
(either in person or from behind the scenes) the bad buyer – the boss who
demands a different price, term or specification.
What they’ll say: “I like what I see. But my boss just won’t agree to these terms.
He won’t agree until you …”
You respond: “I’ll be happy to work with both of you on this. I’d like to see how
you’ve come to this conclusion and talk through the possibilities.”
Bottom line: You want to insist on working with the good buyer and bad buyer at
the same time so you can eliminate the rehearsed approach they planned for
negotiations.
The parent
Strategy: The buyer will put a parental kind of guilt on you by saying you need to
do better.
What they’ll say: “You’ll have to do better than this. We expect you to get it to us
(at a better price, with better terms, at better quality, etc.)”
You respond: “Why?”
Bottom line: It’s a short and valid response. You need to figure out if expectations
weren’t aligned or the buyer is just trying to get a price-drop because he can.
Then be ready to talk value – and add value, if necessary.
The distraction
Strategy: The buyer brings up a “really big issue” that was small, non-existent or
already resolved to distract you from the process and get a concession on
another – and soon-to-be-introduced – issue.
What they’ll say: “I liked what I see, but we’re concerned about this really big
issue. If we can’t get around that, maybe we could settle on this.”
You respond: “Let’s deal with each issue separately. We have time and resources
to pound out everything.”
Bottom line: You want to put the bigger issues up front so you don’t get worn
down and agree to unnecessary and unfair concessions later.
Time and competitor pressure
Strategy: With this negotiation tactic, your buyer invokes the competition –
which you likely know and understand is in the picture – and a looming deadline.
What they’ll say: “I’m talking to (your competition) later this afternoon, and I’m
confident they’ll agree to my terms.”
You respond: “I understand you have to consider options. So to review, our final
bid is $XX, and it includes (a list of the benefits and terms). I can also do this
… (one last value you’re willing to add).”
Bottom line: There’s a good chance buyers are using this same line with several
salespeople. This will help flesh out real issues vs. a bluff. Offering one last,
reasonable benefit can often seal the deal.
Peel apart
Strategy: The buyer tries to peel apart and reconfigure the solution you created
based on their needs, but still wants to negotiate the same price or terms.
What they’ll say: “I know I said we needed 100 units with partial service
coverage, but it looks like we just need 50 and full service coverage. At least for
now.”
You respond: “I’ll be happy to work with you now that your needs shifted. I can
address these issues in the next day and, as it said in the original proposal,
changes could affect the price structure.:
Bottom line: When buyers want to change terms, you don’t want to address
them immediately. Take the step back to make sure you’re both on the same,
agreeable page, and you’ll avoid making concessions you normally wouldn’t.
The stall
Strategy: The buyer keeps putting off a decision, usually citing the cost, trying to
wear you down into submission by the end of negotiations.
What they’ll say: “It’s too much for now. Let’s circle back in two months.” Or, “As
much as I’d like to do this, I can’t fit it in the budget. Let’s talk next quarter.”
You respond: “OK, let’s get this on our calendars right now. Friday, September 12
is exactly two months from today. Does this same time slot work for you?”
Bottom line: When you negotiate, be willing to hold off, too. You’ve likely already
pressed them with urgency, so when they aren’t compelled by urgency, you
shouldn’t be either. Remember, another supplier might be pressuring them, and
the one who respects their time is more likely to win.
Meet in the middle
Strategy: The buyer suggests splitting the difference because he sees it as the
fairest and quickest way to close the deal.
What they’ll say: “Let’s meet in the middle of my offer and your proposal, and
call it a day.”
You respond: “Let’s review the pricing, benefits and terms to determine if the
‘middle’ is the right place for both of us.”
Bottom line: “Meeting in the middle” or “splitting the difference” only makes
sense if the division is fair to both sides.
Hold on, there
Strategy: The buyer plays on your eagerness to close the deal to get you to agree
to one more concession during your negotiations.
What they’ll say: “I’ll sign right now … if you can do this one last thing for me.”
You respond: “I’m curious why that’s an important point that came out now. Can
you explain? Then we can talk about flexibility.”
Bottom line: Both sides need to be flexible to get to the final deal. Show you’re
flexible and respectfully ask them to be, too.
The low-ball
Strategy: The buyer throws out a low-ball target number – for the price or term
agreement – to set or reestablish the bargaining range on the lower side.
What they’ll say: “We don’t plan on spending any more than $200,000.”
You respond: “As we discussed before, the base for the solution that fits your
needs is $300,000.”
Bottom line: Before you get into negotiations, you want to go in with a price first.
So if they’ve forgotten or are ignoring the price you laid out, reiterate where you
stand. You can flesh out a bluff or real issue from their response.
Trials to tribulations
Strategy: The buyer puts off negotiating by suggesting things that waste
time until you feel pressed and are more likely to bend when it comes down to
the wire.
What they’ll say: “Let me try another trial first.” Or, “I’d like for you to do a site
visit.” Or, “Let me work my way through another sample.”
You respond: “You’ve had more experience with our solution than some of our
customers! So let’s start building the solution fit exactly for you.”
Bottom line: You want to get the buyer focused on the business, and less on the
free stuff and stalling.
The shove back
Strategy: This negotiation tactic is more than a push back. It’s a shove! And more
than 80% of buyers say it’s a really effective strategy, according to The Rain
Group research. The buyer acts astonished or offended by an offer in an attempt
to get a quick retreat.
What they’ll say: “I can’t believe this is what you’ve brought to me!” Or, “You
have got to be kidding on this price!”
You respond: “I think we may be looking at this in very different ways. Let’s try
and find some common ground on the proposal and work from there.”
Bottom line: You want to shift from away from an over-reaction and find
common ground where you can regain control.
The leverage
Strategy: In this negotiation tactic, the buyer tells you what they want and why
you should accept it, often to an extreme, to distract you from the information
you can work with.
What they’ll say: “I want you to cut that price by 20% because Apex Co. offered
me the same thing at that price.”
You respond: “Can you go over that again?” Or, “I’m not sure what you’re asking
for. So let’s go over this to make sure we’re comparing apples to apples.”
Bottom line: You don’t want to dwell on the buyer’s leveraged demand. Instead,
you want to differentiate your solution so the buyer forgets the competition and
price – regardless of whether it’s real or a bluff.
The stalemate
Strategy: The buyer has tried many negotiation tactics. You’ve conceded to some
reasonable terms and the buyer won’t budge until he wins it all.
What they’ll say: “I won’t sign until you give me everything I demand.”
You respond: “Thank you for your time and consideration.”
Bottom line: Every salesperson needs to carry the mindset that its OK to walk
away. If buyers know you need a sale, they have leverage and the power to pull
every negotiation tactic and win with each. But if buyers know you’re willing to
walk away, you’re on a level playing field.