LEARN NEGOTIATING STRATEGIES AND TACTICS

In the chapter, you will learn strategies and tactics to help you become an effective negotiator.
Options are almost endless, and no attempt is made to cover all of them here. Those discussed
are basic ploys which enjoy a good record of success.

These strategies and tactics are specialized tools you must know how to recognize, use, and
defend against. They need to be learned and practiced until they become an effective part of
your negotiating activities.

SALAMI

Salami is a technique used to achieve an objective a little bit at a time rather than in one giant
step. This strategy is said to have been named by Mátyás Rákosis, General Secretary of the
Hungarian Communist Party who explained it in this way:

“When you want to get hold of a salami which your opponents are strenuously defending,
you must not grab at it. You must start by carving yourself a very thin slice. The owner of the
salami will hardly notice it, or at least he will not mind very much. The next day you will
carve another slice, then still another. And so, little by little, the salami will pass into your
possession.”

Example:
You want to buy 5 acres of land from an elderly gentleman, who for sentimental reasons does
not want to sell more than 1 acre now. You are in no hurry to acquire all 5. How would you
approach the old gentleman?

(Offer to buy one acre now with an option to buy the other 4, 1 acre at a time over the next 4
years.)
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 FAIT ACCOMPLI

Residents of a community called Hillview, woke up one morning to discover a local

developer removing the top of a peak, which was an appealing part of their view. The
developer did not have a legally required permit, but once removed the hill top could not be
restored. The strategy he used is called Fait Accompli.

He took action to accomplish his objective risking acceptance because he did not wish to
spend the necessary time, effort or expense to follow the established guidelines. In effect the
developer said, “I did what I wanted to, so now what are you going to do?” This can be risky.
Those who employ it must understand and accept the consequences if the strategy fails. For
example, the same developer later put up a fence in violation of local ordinances. This time
the citizens protested and he was required to tear down the fence and move it to a legal
boundary at considerable expense.

Some examples of Fait Accompli are given below.

Please indicate how you would respond to them.

Example 1
A contract was sent to you containing a provision you did not agree to and find unacceptable.

Example 2
You took your old vehicle to a garage to obtain a cost estimate on repairs. When you returned
you found they already repaired it and presented you with a bill of $750.

Reponses:
1. Use Fait Accompli yourself. Delete the unacceptable clauses from the contract and send it
back.
2. Several options including the following are possible:
– Refuse payment.
– Appeal to higher authority. Take it to the owner.
– File, or threaten to file a lawsuit. If local laws or ordinances have been violated, appeal to
enforcing agencies for assistance.
– Tell others what happened to you. Document your case and let the public and others in
business know of the unethical practices.
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 STANDARD PRACTICE

“Standard practice” is a strategy used to convince others to do or not to do something because

of so called “standard practices”. It often works very well because it implies it is the best way
to do whatever needs to be done, and is probably a safe approach. Standard contracts are an
example of this strategy. The party suggesting a standard contract assumes no one would
want to change it, because it reflects what others routinely agree to under the circumstances.
Often the other party will accept this fact of life, however, those who wish to test it can have
good results.

A plumber who was contracted to install plumbing in a new home told his customer
the payment terms were 30% when he started the job, 60% when it was half
completed and 10% on completion. When the customer refused to accept the
agreement, the contractor said the terms were industry standards and showed him the
standard contract to prove it. The customer refused to sign. Finally the contractor
agreed to 30% at the start, 30% at the half way point and 40% upon completion. This
assured the customer the plumbing would be finished before the contractor could take
his profit, but provided adequate funds for the plumber to carry out the project.

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 DEADLINES

Time is critical to people and organizations. Consequently deadlines can be an effective

negotiation strategy. All too often we are aware of time pressures upon ourselves, but assume
the other party has plenty of time. A better assumption would be that if we have deadlines,
the other party probably has them too. The more we learn about the other party’s deadlines,
the better we can plan our strategies. When others attempt to force us to their deadlines, we
should not hesitate to test them.
Most sales in retail stores that “start” on Tuesday and “end” on Friday, can be negotiated so a
buyer can take advantage of them on a Monday or Saturday as well. Most hotels will extend
their checkout time beyond 12 noon if you are willing to negotiate for a later time. Proposals
requested by the 1st of the month are often just as acceptable on the 2nd. Deadlines are
usually as demanding as we are willing to think they are. The more we know about the person,
or organization that set them, the better we can evaluate what they really mean.

Before entering a negotiation, ask yourself these questions:

1. What actual deadlines and time constraints am I under? Are these self-imposed or
controlled by someone else?
2. Are these deadlines realistic? Can I change them?
3. What deadlines might be controlling the other side? Can I use these to my advantage?

Here is a dialogue between Dick Thomas, a purchasing agent and Rick Forest, an office
equipment sales manager:

Mr. Thomas: The supersonic typewriters you are suggesting will meet our requirements. Can
you provide 3 by next Monday for $4,500?
Mr. Forest: I am not sure we can. Because you also want the high output energizer, that
puts the price for 3 over $5,000.
Mr. Thomas: That’s more than our budget allows for this purchase.
Mr. Forest: Well, I’m sorry about that. To meet your price, I would have to talk to my
District Manager and he is hard to reach.

What might Mr. Thomas say to get Mr. Forest to agree to supply the typewriters for $4,500,
or at least to make some price concession, with minimum delay?
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 FEINTING

Feinting gives the impression one thing is desired when the primary objective is really
something else. An employee, for example, may negotiate with the boss for a promotion
when the real objective is a good increase in salary. If the promotion is forthcoming so is the
raise. If the promotion is not possible, a nice raise may be the consolation prize. Politicians
use a variation of this strategy to test receptivity by the public to something they plan to do.
Their planned action is “leaked” by a “reliable source” to test acceptability before a final
decision is made. The public’s response is then evaluated. If there is little opposition it is
probably safe to proceed. If there is an adverse reaction, another approach can be explored.

APPARENT WITHDRAWAL

Apparent withdrawal may include some deception as well as deferring and feinting. It
attempts to make the other negotiator believe you have withdrawn from consideration of an
issue when you really have not. Its purpose may be to ultimately get a concession or change
in position. For example, the prospective buyer of a painting finds the seller unwilling to
meet the price the buyer is prepared to pay. The buyer might say, “I’m sorry but I can’t meet
your price. You know my price, so unless there is some movement on your part we can’t do
business.” The buyer then leaves. If the buyer has made a realistic offer, the seller may decide
to make a concession. If not, the buyer can always go back with a slightly higher offer. In the
meantime, of course, the buyer can consider other options.

GOOD GUY/ BAD GUY

The good guy/ bad guy ploy is an internationally used strategy. One member of a negotiating
team takes a hard line approach while another member is friendly and easy to deal with.
When the bad guy steps out for a few minutes, the good guy offers a deal that under the
circumstances may seem too good to refuse. There are many versions of “bad guys”. They
may be lawyers, spouses, personnel representatives, accountants, tax experts, sales managers,
or economists.
One danger in using this strategy is that it will be recognized for what it is. Here are some
ways to deal with it if you feel it is being used on you.
– Walk out.
– Use your own bad guy.
– Tell them to drop the act and get down to business.
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 LIMITED AUTHORITY

Limited authority is an attempt to force acceptance of a position by claiming anything else

would require higher approval. Individuals who claim to have limited authority are difficult
to negotiate with, because the reason they use to not meet your demands is due to someone
else, or some policy or practice over which they have no control. A salesperson who cannot
give more than a 5% cash discount, influence the delivery date, or accept a trade will not
make concessions in those areas. Some negotiators will concede under these circumstances,
while others will insist their offer be taken wherever necessary for approval or rejection.
There is some risk this will terminate the negotiation, but it does give the other party a chance
to gracefully reevaluate their position.

Questions: Can you define and recognize these strategies and tactics?

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 EIGHT CRITICAL MISTAKES

Check those you intend to avoid:

1. Inadequate preparation.
Preparation provides a good picture of your options and allows for planned flexibility at the
crunch points.
2. Ignoring the give/ get principle.
Each party needs to conclude the negotiation feeling something has been gained.
3. Use of intimidating behavior.
Research shows the tougher the tactics, the tougher the resistance. Persuasiveness not
dominance makes for a more effective outcome.
4. Impatience.
Give ideas and proposals time to work. Don’t rush things, patience pays.
5. Loss of temper.
Strong negative emotions are a deterrent to developing a cooperative environment, and
creating solutions.
6. Talking too much and listening too little.
“If you love to listen, you will gain knowledge, and if you incline your ear, you will become
wise.”
7. Arguing instead of influencing.
Your position can be best explained by education, not stubbornness.
8. Ignoring conflict.
Conflict is the substance of negotiation. Learn to accept and resolve it, not avoid it.
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 ACCEPTANCE TIME AND POST NEGOTIATION REVIEW

Two additional important considerations for the negotiator are acceptance time and the
post-negotiation review. They are explained below.

ACCEPTANCE TIME
As you go through the negotiating process, be ever mindful of the need for acceptance time.
PEOPLE NEED TIME TO ACCEPT ANYTHING NEW OR DIFFERENT. Parties enter
negotiations hoping to get what they want quickly and easily. This is not always possible.
Sometimes they have made incorrect assumptions or perhaps have some misconceptions. The
high price desired by the seller, or the low price hoped for by the buyer are not as easily
obtained as they had anticipated. Readjustments are needed. These take time. Wishes become
reality only through hard bargaining, readjustment and compromise.

POST-NEGOTIATION REVIEW
Do an analysis following each negotiation. This will help you determine reasons for your
success or failure, and will be valuable information in future negotiations. Examine the
strengths and weaknesses of your opponent’s approach as well as your own, and file it away
for reference prior to your next negotiation.

The Negotiators Guide to Preparation presented on pages 56 & 57 is an excellent reference

with which to guide your post negotiation review.

NEGOTIATOR’S GUIDE TO PREPARATION

1. DEFINE GOALS AND OBJECTIVES

– Exactly what do I want from this negotiation?
– What do I have to get to meet my needs?
– What am I willing to give up to get what I want?
– What are my time and economic requirements for this negotiation?

2. CLARIFY THE ISSUES

– What are the issues as I see them?
– What is the supporting framework for my position?
– How will I present it to the other party?
– What are the issues as seen by the other party?
– How will they support their position?
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– What appear to be the significant differences in the way the parties view the issues?
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3. GATHER INFORMATION
– Who will I be negotiating with and what do I know about them? How do they approach a
negotiation? What are their ego needs?
– When and where will the negotiation take place? What advantages or disadvantages do the
alternatives have for me? …for the other party?
– What are the economic, political and human implications of the issues?
– What personal power do I have that can be used constructively in this negotiation?

4. HUMANIZE AND SET THE CLIMATE

– How can I best establish rapport with the other party?
– How can I establish a win/ win climate?

5. PREPARE FOR CONFLICT

– What will be the major points of conflict?
– How will I determine what the other party needs as compared to what they want?

6. COMPROMISE/ RESOLUTION OF THE ISSUES

– How will I attempt to resolve conflict? How will I respond to the other parties’ attempts to
resolve conflict?
– What concessions am I prepared to make? Under what conditions?
– What do I expect in return for my concessions?

7. AGREEMENT AND CONFIRMATION

– How formal must it be?
– What approval process will be required? How long will it take?
– What implementation steps will be needed?

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