Whenever you negotiate, it’s always a good idea to limit your authority. Having someone to check with is convenient when the other side is pressuring you for a commitment you may not want to make. Perhaps you are not as well prepared as you thought, or would like more time to think it over.
Car salesmen use this tactic all the time. After hearing your offer they disappear to “check with their manager”, then return to tell you their “hands are tied”.
Many people let their egos get the better of them during a negotiation. They may say something like: “I’m the boss, I can do whatever I want, I don’t need permission from anybody.” Once you have said that, the other party may press you to agree to a proposal you may be unsure about. But what if you really are the boss, and the other side knows it? There is no one higher you can defer to. So what can you do? You can defer to someone lower than you. For example, you can say, “I’ll have to check with my accountant before I commit to that figure,” or “I need to run that
past my marketing team and get back to you.” As the boss, you would do well to delegate certain responsibilities to others you trust, and it is only natural to value and rely on their input.
Some negotiators like to ascertain at the beginning of the negotiation that they are dealing with a person with decision-making authority. This is a good practice. However, if they try it with you, don’t take the bait. Tell them you have authority to a point, and will need to check with others beyond that point. Do not name a specific person, or they may want to get his approval on the spot. Your higher authority should be a vague entity, such as a committee, management, or the Board of Directors. Negotiations are unpredictable. Always leave yourself an out. Even if you don’t use it, you will be more comfortable — and confident — just knowing it’s there.
Silence
Most people are uncomfortable with silence. During an awkward pause, they say something — anything — to break the tension. This is usually a mistake.
Learn to be comfortable with silence. Let the other party do the talking. She just might say something that is music to your ears.
Suppose your counterpart makes a concession. You remain silent. She is wondering what you’re thinking, and might assume you feel her concession is inadequate. As the silence becomes uncomfortable, she opens her mouth to speak — and offers you a bigger concession. She is now negotiating with herself.
If your counterpart clams up on you, don’t give anything away. Repeat your last comment, ask her what she thinks about it, read through your papers, stare her in the eyes, or excuse yourself to make a phone call or
use the restroom. Do anything to break the dynamic without conceding more. Just make sure you don’t break into nervous giggles.
Bundling
You walk into a fast food restaurant for lunch. You order a burger and a medium drink. Then you notice that you can get the same burger and drink with fries for just a bit more. It seems like such a bargain. When you stop eating and stare at the remaining piece of burger and fries that you can’t finish, you wonder why you ordered so much food. You’ve been bundled!
Sellers often bundle a set of related items at a special price to entice you to spend more. Sometimes it is a bargain, like when you really do want a burger, drink, and fries. Often it is just a tactic to separate you from your money.
To counter the bundling tactic, focus on your interests. Determine which items in the bundle you want and which you do not want. Negotiate for a package that includes only what you want. Do not be swayed by a package of unnecessary extras just because it looks like a good deal.
I can avoid paying for unnecessary extras by focusing on my interests.
Star Tips for using negotiating tactics and counter-tactics
1. Understand tactics not only so you can use them, but also so you can defend against them with the appropriate counter-tactic.
2. Weigh the pros and cons before deciding whether to make the first offer.
3. Never accept a first offer.
4. Aim high when making an opening offer, but don’t insult the other party.
5. Understand that initial offers and counter offers can serve as anchor points. They establish the negotiating range and strongly influence the settlement price. 6. Play hard to get by using the flinch and reluctance
tactics. This often results in a sweeter deal.
7. Use the clock to your advantage, but remember that most deadlines are arbitrary.
8. Limit your authority. Allow yourself an out by being able to defer to others on certain points.
9. Be comfortable with silence. Don’t blurt out something you’ll later regret simply because the silence feels awkward.