Rethinking The Concept of Negotiating From A Management Perspective Deck 4

Negotiating –
Getting What
you Want, not
What you are
Offered!
Negotiation Quotes
One of the best ways to persuade others is by
listening to them.
Dean Rusk
Negotiation
Tactics
• Persuasion
Negotiating • Deception
tactics (even • Bluffing

• Misdirection
under good • “Give-to-get”
faith • Playing charades (rather than

negotiating)
bargaining) • Changing / shifting priorities

• Belabouring an issue
Tactics:
(1) Manipulation of data
• Often, on the fly statistical data can and will be introduced as
subject matter with the intent to persuade.
• This gives an appearance of bargaining strength or power if
used properly
• However, statistics can be variously interpreted, and when
used “on the fly” be treated with some measure of doubt
• Trends and forecasts can be persuasive; however, consider the
source before “buying in”
• Data can be manipulated just by focusing on one statistic to
build an argument rather than looking at the basket of facts as a
whole
• Financial information can often be used to present “confidence,”
or cast “fear” as presented in the process
Tactics:
(2) Misleading the opposition
Leading the opposition through the use of:
• Misinformation
• Untruths
• Red herrings
are common negotiation tactics
Often Negotiating parties deliberately try to “trick” or lead
their opposition by
• Feeding them incorrect information or blatant lies to make
their position “seem” stronger – this is very much contrary
to bargaining in good faith which perhaps questions the very
existence of such
Tactics:
(3) Impassioned ploys
• Playing on emotions of the other party – seeing how an
issue impacts at the “core” of a person with the aim of
exploiting such
• Timing, delays, continuances and other shifts to
attempt to facilitate a “quick” resolution “now” if
possible
• Re-group to collect thoughts with the aim of coming up
with a “fresh” attack or better defence (perhaps)
without giving up, or making any concessions
• Many would claim that using use should not be
recommended as such can backfire; however, this can
run either way
Tactics:
(4) Switching roles
• Putting yourself in the other
person’s shoes
• Switching between an aggressive
to a passive postures
• Being passive-aggressive,
seeming to being placatory and
down-playing overt aggression
• Is walking away, or doing nothing an
Negotiating actual negotiation strategy?
• Is it better to be lucky, or knowledgeable
strategies: as an effective negotiator?
• When should you “bluff” your
Some opponent, if ever?
• Are there ever any reasons to “give”
Questions more at the cost of obtaining “less” with
respect to a resettlement, or resolution?
Negotiation Quotes
When the final result is expected to be a compromise,
it is often prudent to start from an extreme position.
 JOHN MAYNARD KEYNES

Powerful Negotiating Strategies for Purchasing and
Acquisition
Negotiation Quotes
In any negotiation, the one who first gives a number
is the loser.
•KENNETH EADE
Powerful Negotiating Strategies for
Purchasing and Acquisition
PIE-SHARING – The Choice is Yours
1. Consider being asked to select from two slices of pie, one very large,
the other quite small.
2. You, operating under the perspective that “more is preferred to less,”
select the large piece of pie
3. Your “opponent” indignantly says, “Well I would have selected the
smaller piece as a token of my esteem and out of respect for you”
4. You reply quickly, “So everything is as it should be as you got what you
wanted anyway”
Moral of the story – be careful what you ask or negotiate for, you may get
it and not like it!
Purchasing and Acquisition (2)
SILENCE IS GOLDEN – WHAT DID YOU SAY?
1. You consider purchasing a chair from a popular website, i.e., Kijiji,
Craigslist, Marketplace etc., which has been advertised for $100.
2. You know the vendor is asking $100; however, you don’t make an offer,
stay silent and make the statement, “how much are you asking for the
chair?” Why?
3. You hope that the vendor may say $80, perhaps less just because you
are there in person, and are a serious buyer.
4. If you “luck” out, you may counter offer, say $50.
5. In your silence, i.e., not making the first move, you capitalized on the
transaction.
Moral of the story – being the first mover in the negotiation can mean
you’ll pay too much!
LOW-BALLING
1. You consider purchasing a piano from a popular website, i.e., Kijiji,
Craigslist, Marketplace etc., which has been advertised for $300.
2. You know the vendor is asking $300; however, after careful inspection,
you state, “Well this is going to take a great deal of work to remove this
from your basement, I can do so; however, you’ll need to “pay” me
$100.”
3. The vendor, in a state of bewilderment, says, “Well, ok, I’ll give it to you;
however, I’m not paying you $100. Why did the vendor do this?
4. Sometimes the value of the item being considered can “shift” at a
moment’s notice based on any of a number of circumstances
5. Your “low-ball” worked – that said, the negotiation played to your favour.
Moral of the story – what does it hurt to “throw” out an offer?
SHOW ME THE MONEY, OR THE POWER OF PRINT
1. You consider purchasing a used car from popular website, i.e., Kijiji,
Craigslist, Marketplace etc., which has been advertised for $9,300.
2. After careful inspection, you pull out a large amount of currency from
you pocket, start counting it out to the tune of $7,500 and ask, “Would
this work for you?”
3. The vendor’s eyes bounce around like pinballs in a cabinet, and says,
“Well, ok, you got a deal!”
4. Sometimes it is just hard to turn down cash, or the promise of paying for
something in print form.
Moral of the story – Cash is often king, all the glitter is not gold, but often
still very alluring.
LAST CHANCE TIME – GET IT NOW BEFORE ITS GONE
1. The sign says, limited time offer, today only $99 while quantities last.
2. What do I do, if I don’t purchase this now, the deal will be gone, its
FOMO (fear of missing out at its best)
3. You buy the product, take it home and reflect on your purchase.
4. Did I do the “right” thing, or was this another example of a “fool and his
money”
5. I’m not sure, but all sales are final.
Moral of the story – Creating a sense of urgency, a call to action sells
products. Remember, buyers purchase on emotions and justify on
(seemingly) logic .
THE BLIDESLIDE – I COME IN PEACE
1. I’d like to buy that desk from you, says the purchaser to the vendor.
2. How much for that nice chair in front of the desk, knowing full well that the
advertised price of the desk is $100.
3. Well the vendor says $50 for the chair, and you respond, “Well I like the chair
it would look great in my den, would you take $100 for the desk and the
chair?”
4. The vendor being distracted by the discussion surrounding the chair, accepts
the offer, you quickly pull out a $100 bill and load in your truck. How did this
happen?
5. Like a boxer who faints a right jab to immediately throw a left hook, the
distraction, misdirection, or simply “blindside” threw you opponent off their
game.
Moral of the story – don’t get distracted when you negotiate.
MY BOSS SAYS . . . SO WHO CARES?
1. Approaching a vendor, you offer $2.00 per box to secure a quantity purchase
of 100 units.
2. The vendor says well “the best I can do is $2.50 per box, do we have a deal?”
3. With a quick retort, “my boss has only authorised me t pay $2.00 per box,
that is the very best I can do.”
4. The vendor, thinking about loosing the deal accepts your offer and ends the
negotiation process.
5. Question: So who cares what your boss has authorized, do you want to
purchase the items of not, would and could likely force a higher purchase
price.
Moral of the story – referential authority can deflect the purchase pain
sometimes.
LEAVING MONEY ON THE TABLE
1. A purchaser offers you $100 per item, this is more than you had hoped for.
2. What to do? Accept the offer, make a counter offer, do nothing?
3. Thinking to yourself, “if they’ll pay $100 per item just like that, they will likely
pay $120 per item,” so you counter such.
4. The deal goes south – why?
5. It was a “best” and final offer and that’s it . . .
Moral of the story – a win is a win, a gift is a gift, know when to admit a “good”
deal is actually a “good” deal. The difference between a “good” and “excellent”
deal may be impossible to negotiate. Be happy!
FAIT ACCOMPLI
1. So it is a “done” deal, 100 suits for $100 / piece. Or so you think . . .
2. The deal is actually not a deal till you have been paid (in full).
3. At the last minute, the purchaser says, “I can only pay, $90 / piece.” It is the
dreaded, “double-deal” at its best.
4. A “fait accompli” is not a finished task even though it may seem that way.
5. The important part of this process is getting a “non-refundable” deposit from
the purchaser, and in some cases, this may be a difficult task.
6. Purchasing, and the double deal brings out the worst in the negotiation
process – it is why some people choose to never negotiate.
Moral of the story – it isn’t over until you hear “who” singing . . .
APPEAR UNREASONABLE
1. The vendor says, “you must be crazy, I can’t sell you those baskets for $15 /
each.”
2. You, as the purchaser knew this all the way along, and was prepared to
purchase such for $25 / each.
3. Thinking to yourself, “what do I have to loose, and make a counter offer for
$12 / each.”
4. The vendor is perplexed, where is this going and accepts the original offer of
$15 / each.
5. Being “unreasonable” can work to your advantage when negotiating – you
won’t know until you try it and it may perhaps not work all the time.
Moral of the story – what is reasonable is at best circumstantial. Out of chaos
often comes confusion.
CLARIFICATION OF POSITION
1. For clarity sake, “I’ll give you $1,200 for the table, do we have a deal?”
2. What do you mean, “for clarity sake” asks the vendor.
3. Precisely that, “it’s $1,200 take it or leave it.”
4. The vendor has options available; “clarity,” and words similar are used to
present “leverage” or a “position of strength;” however, this can be seen as a
bluff, or posturing, you won’t know until you test the waters.
Moral of the story – you can never step into the same river twice, the waters
always change – so too, negotiation is much like a river, you’ll not know which
way the waters are moving until you step in.
LISTING THE PROS AND CONS
1. Well, the car looks great, but it needs, new tires and brakes, a paint job, a
new exhaust system and some interior work, you state to the vendor.
2. The vendor says “but it runs great, and is well worth the $15,000.”
3. And you again say, “well, the car looks great, but it needs, new tires and
brakes, a paint job, a new exhaust system and some interior work, would you
take $12,000 to offset the required work to be done to make the car
roadworthy?”
4. You have a deal states the vendor.
Moral of the story – don’t get lost in the forest by looking at all the trees; there is
a time to observe nature and a time to plan an exit.
THE POWER OF GUILT . . . OR WILL I?
1. Well, “I’ve got other offers for the property,” states the vendor. “You know it’s
a great deal, you’ll be sorry not to purchase it.”
2. Really, “will I” thinks the potential purchaser.
3. If a deal is a “good” deal, it will be a “good” deal tomorrow; however, there is
always a chance that there are potentially other purchasers.
4. What to do? A deal make in haste is not a deal, although you may miss out on
some transactions, remember there will be plenty of other deals to consider.
Moral of the story – the hare lost the race to the tortoise – slow and steady
means you at least finish the race.
THE STRAW MAN – BUILD HIM UP?
1. Well, that certainty is a nice colour you say to the vendor regarding the
potential purchase of the tablecloth.
2. “It looks very well made and the fabric is wonderfully soft.”
3. “I know my family would truly treasure it.”
4. “I’m just a bit afraid that it is over my budget, I know you’d like to get $125 for
it, but would you consider $85?”
5. The vendor, feeling appreciative of the comments on the part of the
purchaser agrees to the deal.
Moral of the story – flattery can work, build up the straw man, only to tear it
down when the time is right.
RED HERRING – IF IT SMELLS FISHY . . .
1. Gee – “that pie smells great, is it baked with Granny Smith apples?” asks the
purchaser.
2. The vendor says, “yes, that’s right.”
3. I see that “the crust is ever so flaky,” remarks the purchaser.
4. “Absolutely, it was just baked this morning,” so the vendor states.
5. I’ll take two of the CHERRY pies, if you can give me a bit of a discount,” asks
the purchaser.
6. “Sure, can do” states the vendor.
Moral of the story – bait should be used for fishing, but the classic “bait and
switch” can be successfully employed both by purchaser and vendors alike.
THE RESUMARIZTION OF FACTS
1. So “we agreed to a price of $50, for a quantity of 5 red stools, with each stool
being 36 inches high,” so the vendor states.
2. “Yes, we agreed to a price of $45, for a quantity of 5 red stools, with each
stool being 36 inches high,” so states the purchaser.
3. Sounds like we have a deal states the vendor, as the purchaser gives him $45
dollars and takes the stools away.
4. Restating what was obvious is not always “obvious” the “devil is in the
details” pay attention and remember what you agreed to.
Moral of the story – what was said is often forgotten; as a purchaser, creating
“chaos” can have significant dividends.
CHANGING NEGOTIATIONS IN MID-DEAL
1. “I really like the house, and can close this next month – would that work for
you?” the purchaser asks.
2. “Sure thing” states the vendor.
3. “I really like those appliances, large screen television and especially the pool
table, can you tell me about those items” asks the purchaser knowing full well
that they are not included in the purchase price.
4. The vendor provided significant details on each; now the purchaser says, well
“sounds great, with the inclusion of such, we have a deal.”
5. The vendor acquiesces and the deal is done.
Moral of the story – don’t confuse one deal with another, tactically, conclude one
transaction before another begins or you likely end up bundling them.
THREATS –ULTIMATUMS, INTIMIDATION & BLUFFS
1. Approaching a vendor, you offer $12.00 per plate to secure a quantity
purchase of 1000 units.
2. The vendor says well “the best I can do is $12.50 per plate – sorry.”
3. “Well, it’s $12.00 take it or leave it, that’s my final and best offer.”
4. The vendor, thinking about loosing the deal accepts this ultimatum and ends
the negotiation process.
5. Question: Was this a bluff? You never really know until you cross that bridge.
Likely, there’s always room to negotiate; however, sometimes it is basically “a
bird in the hand theory.”
Moral of the story – sometimes, like in the popular song lyrics, “you got to know
when to hold them, know when to fold them . . . “
WALKOUTS – DO NOTHING
1. The purchaser states, “well, that’s just too much for me, I can’t pay that
price.”
2. The vendor says well “well, how much do you want to pay?”
3. “I don’t know, let me think about it,” the purchaser states and walks out to
grab a coffee.
4. The vendor, thinking about loosing the deal wonders if the purchaser will
come back to further negotiate.
5. The purchaser finds another vendor and opts not to proceed with respect to
the original purchase.
Moral of the story – never let a deal die (unless it makes absolute sense). When
you have the possibility to negotiate – do it! Deals do “go south” and can
walkaway.
LEAVING GRACEFULLY – COME TO FIGHT ANOTHER DAY
1. “Well, I guess we’re not going to get this deal done,” so states the vendor.
2. “Guess not, but I really thought that my offer was more than fair, are you sure
it won’t work for you?”
3. “No, but I appreciate your offer” the vendor says.
4. “Okay, if you change your mind, you know where to reach me” says the
purchaser.
5. Question: A deal today, may or may not be a deal tomorrow. If you reach out
to the purchaser, you loose some of your bargaining power, and likely will
have to accept the previous terms and conditions. Does the first mover have
an advantage or disadvantage with respect to the negotiation process?
Moral of the story – you have two ears, and only one mouth, listen more and be
careful about commencing the process, your advantage is easily lost.
SPLIT IT DOWN THE MIDDLE
1. “Let’s say we both agree to $10 / unit, how’s that sound?” asks the purchaser.
2. “Well, $14 / unit would be better, how’s that?” asks the vendor.
3. “How about splitting it down the middle, say $11.50 / unit?” states the
purchaser.
4. “Sure, we have a deal” states the vendor.
5. Not long after, the vendor realises that the math was “wrong” here; however,
it’s too late – the deal is done.
Moral of the story – if you’re not sure that you are making the right decision,
especially regarding terms and conditions, sit back, think it through. Magicians
use slight of hand and misdirection all the time creating wonderful illusions.
Don’t be fooled into looking at a deal one way only.
IT’S TOO COMPLICATED – LET’S MAKE IT SIMPLE
1. “Ok, $50,000 as a deposit, $50,000 in thirty days and the balance of $200,000
on closing” states the purchaser.
2. “Well how about $50,000 as a deposit, $50,000 in thirty day, another
$50,000 in sixty days, and the balance of $150,000 on closing plus legals” the
vendor offers.
3. “That’s just too complicated, let’s make it simple, I’ll give you $275,000 paid
in full to close today, does that work for you” asks the purchaser.
4. The vendor accepts the deal perhaps out of fear that the deal will be lost;
however, in doing so, looses $25,000.
Moral of the story – terms are like the trees in the forest, in looking at the trees,
the beauty of the forest can be lost. Simplicity can cost you money, or make you
money.

Rethinking The Concept of Negotiating From A Management Perspective Deck 4

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Rethinking The Concept of Negotiating From A Management Perspective Deck 4

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Negotiating –

tactics (even • Bluffing

faith • Playing charades (rather than

bargaining) • Changing / shifting priorities

 JOHN MAYNARD KEYNES

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