Lesson - Negotiating Deals

a zero-sum game

a situation in which a benefit gained by one side means a loss to the other side

a win-win situation

a situation in which both sides benefit

build rapport

develop an understanding of and ability to communicate with someone

probe interests

find out the other side’s expectations

begin the bargaining procedure

start to negotiate the terms of an agreement

make proposals

make suggestions

make counter proposals

react to suggestions

reach a stalemate

arrive at a situation which no progress can be made

make concessions

allow or give up things in order to reach an agreement

reach a compromise

arrive at an agreement where both parties reduce their demands in order to agree

work out the details

discuss all the aspects of the dea

return to the negotiating table

re-negotiate an agreement

The negotiation decoy

add extra false interests to your agenda which you can bargain with, without affecting your real interests

The extreme offer

ask for more or offer less than expected in order to make ‘concessions’ later

Negotiation nibbling

make one last ‘small’ demand once the deal has been done hoping that your opponent will agree in order not to harm the agreement

Good cop bad cop

one member of your team is demanding and inflexible (the bad cop), the other appears to be pleasant and reasonable (the good cop). Your opponent will have to deal with the good cop.

Mention the competition

make references to what your opponent’s competitors are offering in order to gain the concessions that you want

Negotiation limits

state limitations (e.g. money, time), real or imagined, hoping that your opponent will make a concession to meet your limit

Take it or leave it

appear as if you are ready to break off the negotiations unless your interests are met

Negotiation silence

stop talking during the negotiation in the hope that your opponent will become uncomfortable and want to make a concession in order to break the silence.

neutralise: the negotiation decoy

Probe each interest thoroughly, e.g. by asking how each one helps your opponent.

neutralise: good cop / bad cop

Focus your efforts on Mr./Mrs. Nasty and ignore Mr./Mrs. Nice. Alternatively, just ignore the tactic altogether

neutralise: negotiating nibbling

Be very clear about what is included and excluded in the deal. Resist the temptation to make this final concession

neutralise: the extreme offer

Show your surprise and allow yourself to laugh. Mention other deals you have made to persuade your opponent to adjust his/her expectations.

neutralise: take it or leave it

Ignore the threat and continue the negotiation as if you have not heard it

neutralise: negotiation silence

Restate your offer. Do not make any suggestions or concessions. In extreme cases, get up and walk out the door in the hope that your opponent will call you back and continue in a reasonable manner.

neutralise: mention the competition

Make sure you know what your competitors are offering and be prepared to explain how your product or service differs in terms of value.

neutralise: negotiation limits

If you can make this concession, make sure you get something back. Alternatively, focus on how your product or service will save your opponent time or money in the long-term.