Previously, I analysed the following negotiation gambits and tactics: shot gun, off-limits, tough guy, nice guy, Russian Front. The analysis of these situations, which involve a change in perception in a negotiation context, sometimes including manipulation, is based on the book Managing Negotiations: How to Get a Better Deal, by Gavin Kennedy, John Benson, and John McMillan. Below, I will analyse other negotiation gambits and tactics:
Sell cheap, become famous
One way of formulating this tactic could be: “We are making you a cheap offer that will greatly enhance your company’s image, as you will benefit from being a supplier to an international, million-dollar company like ours. Think about how much good us as a customer on your client list having will do for your future sales.”
This trick is used at all levels and in all areas of life. Companies do not advertise their jobs with “low salaries”; they talk about “good prospects”; buyers talk about possible “future orders”; interns, who are paid very little, are commonly appealed to by the prestige of the company they work for. Sometimes these promises are, however, not always true. If you believe them, you will accept them, but often it is important to acknowledge what it is: a trick to sell something cheaper.
Salami
Salami comes in thin slices and is not eaten all at once. This is the intention behind this particular tactic. It suggests that something is better postponed at different times to make it more digestible than applying it all at once. It offers the possibility of introducing certain changes into agreements gradually, over a relatively long period of time. In this way, it is understood that there will be less resistance from those affected.
The demands of the mandate
Third-party negotiators are bound by their mandate. This usually takes the form of “I have been instructed to obtain this amount and I am mandated not to give in until I get it.” This tactic is very common. For example, when someone says they must consult with their partner about a decision regarding a property or rent. Or a lawyer representing a client who is inflexible on certain positions. Or when a board implements shareholders’ resolutions. This becomes a negotiating trick when such a mandate is an excuse to improve certain positions in the negotiation and may in fact be the widest room for manoeuvre.
Veiled threats
Threats of sanctions can be very risky. They raise the emotional temperature. “Are you threatening me?” is a sure sign that what you are saying makes you the antagonist. “Of course not” is the expected response if you are trying to warn them of the consequences of bringing themselves into your disapproval. There are two useful ways to effectively use a threat of punishment:
First, the consequences of disagreeing are these, but neither of us wants to see them as a threat. How can we avoid it? Here it depends on where you stand. Zone of Possible Agreement -ZOPA-, which defines the negotiation panorama. The Best Alternative to a Negotiated Agreement – BATNA- of each party’s ability to seek an agreement more easily implies how credible the threat of breaking it is.
Second, you make the sanction credible: “…we naturally do not want to require this component, as our engineers are currently investigating an alternative method that appears to be marginally cheaper…” In threats, credibility is key, and this is often linked to the strength of the BATNA. If you have a stronger alternative, it is very likely that you will not end up agreeing, and/or you can threaten to break off negotiations and demand better terms.
Connecting
Your opponent may start negotiations with you in a weak position on some issues, so their best approach is to try to connect these issues where they are weak with other issues where they are strong. For example, you may be prepared to discuss late payments of your invoices, but the other party wants to talk about the poor quality of the components you sent last week. Connecting issues in this way involves linking one issue to another and making them unacceptable together. Thus, a certain clause in the contract at the price you are asking for becomes extremely difficult to accept. If you have chosen the right clause — preferably a non-negotiable issue — it is quite likely that the price will move. If the price is firm, then you will have to revisit the clause.
Yes, but…
The “Yes, but…” tactic consists of saying, “Yes, we agree with what you are offering, but we have this other problem that we need to resolve before we can agree to everything.” The other problem is a new issue that has not been evaluated previously. This can lead to certain risks, such as affecting the patience of the losing party and suffering allegations of bad faith or of dealing with negotiators who are not serious. To avoid the “Yes, but…” tactic, all conditional proposals should be made, all objections should be kept open, and for each new option proposed, use a “No, but…” in reply: “We cannot accept these new conditions, but if you insist, we will have to rethink the terms of the entire negotiation…”