business negotiation tactics

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This is an example of business negotiation tactics. This document is useful for conducting business negotiation tactics.

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Shared by: Pastor Gallo
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NEGOTIATION TACTICS No one will really negotiate with you unless they believe that you can either help them or hurt them and that you probably will. They may go through the motions for politeness sake, but they will not make a real effort to change their package, proposition or position, to meet your needs unless they perceive that it's to their advantage to do so. Negotiation tactics are rarely thought out in advance. They are ordinary pieces of human behaviour which in the past have worked and which are mostly applied unconsciously. When someone uses tactics against you successfully you are responsible for reinforcing their belief that their behaviour works and therefore you are in part responsible for the tactics. Take the tactics that children use against parents. If having a tantrum at the supermarket checkout got the child a Mars bar last time do you think they will try a new tactic next time? Unlikely! - people continue to do what works. They will continue to do it until it doesn't work - then they will try a new strategy. If you want to change the strategies of the people you deal with, make sure that you do not reinforce the unacceptable strategies they are now using. This applies to unions, competitors, customers, clients, bosses or subordinates and anybody else you deal with. To change some of the tactics used against you, you must first identify them. Often all that is required is a change of attitude or belief on your part. The next time you purchase something expensive that you really need, try this mental reframe and see if it alters the perceived power balance. Go in with the firm belief that you are selling money rather than buying goods and that you will sell to the highest bidder or you may not sell your money at all if an appropriate deal cannot be negotiated. Try this when you next seek a loan or credit. What about other tactics. The tactic of LEGITIMACY is worth examining. On your next business trip you will come across numerous signs, rules and notices. Let us assume you step in to your new Hertz car in a strange city. On a freeway you may come across a red and white sign that says "WRONG WAY GO BACK". Most people would take rather urgent action to comply. But what about the sign in the hotel foyer that says "CHECK OUT TIME 11am". Has it the same power to influence you. You may be surprised to know that 95% of people comply without question even when their return flight does not leave until 4pm. Power lies in making distinctions. Just because you see a sign or a "standard contract" do not assume that they all have the same weight or consequences or that some satisfactory alternative cannot be negotiated. The timing of your negotiation is of course critical. When facing traffic bearing down on you on the freeway at 100 kph you may decide that that is not an appropriate time to do D:\WEBSITE RAW FILES\TACTICS.wpd 1 your own thing. Another tactic which is commonly used is "LIMITED AUTHORITY". Always talk to the person with the power to make the decisions. If that is not possible then make sure that your negotiator also has limited authority. The tactic of limited authority will commonly be used on you when you wish to make a complaint, swap goods, change rooms or do anything which could be remotely considered out of the ordinary. The usual response is "I can't make that decision" and your response may be "well who can?" The answer will of course be "The Manager", who is on holiday, interstate, in a board meeting, unwell today etc etc. The best response on your part is to throw the ball back in their court and say "Well find me someone who can!" When making a complaint you will make it a lot easier for the other person if you not only make the complaint but tell them what you want done about it. The golden rule is WHEN MAKING A COMPLAINT ALWAYS PROPOSE A SOLUTION. The advantage of this approach is that you are not making them guess what it is that they could do to rectify the situation. Tell them what you want and then negotiate. Let us assume that your company has changed its policy on car rentals and on your next trip you have to get a car from `Run Down Car Rentals'. Before you get it out of the car park it is boiling. You complain without suggesting a solution. The solution that `Run Down Car Rentals' may come up with is to provide you with a bottle of water to fill the radiator every 20km. In other words their solutions may not fit your needs. Propose your own! Other negotiation tactics which will be used in ordinary business dealings include COMPETITION...."We have other proposals you know" whilst tapping a pile of empty manilla folders. If the other proposals are so good, why are they talking to you? LIMITED MENU is used to restrict your choices. If you opt for the Extended Warranty then you must purchase the Service Agreement. There are many more but the principle of countering them is always the same. First, identify the tactic. A tactic perceived is a tactic which has lost most of it's power to influence you. Second, counter by using the same tactic back or using another to regain equality of the power balance. The greater your ability to negotiate the more profit you will make and the less stress you will place yourself under. D:\WEBSITE RAW FILES\TACTICS.wpd 2 D:\WEBSITE RAW FILES\TACTICS.wpd 3

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