There are many different tactics that are commonly used in the negotiation process. All of them have their place, and many of the methods that have been popularized are specialized for specific types of negotiation. The level of detail the best negotiators put into understanding the human mind and how to use certain tones of voice coupled with specific tactics to lead the other party in the direction that they would like them to head is, to say the least, quite impressive. Just knowing the tactics is only half the battle, but putting them into effective use can be tricky if you do not know how to properly propose them. A few of the more common tactics that are used in negotiations include:
Nibbling is among the most popular of negotiation tactics. The actual strategy is to continue the negotiations after the deal is supposedly done. This tactic is most effective when a great deal of time has been spending finalizing the negotiation and the other party has invested a great deal of time into it. For instance, if you are buying a piece of property, after the deal is finalized you may ask for other accommodations that were not originally part of the plan for the property that you purchased. This can be a fairly risky tactic although a large majority of individuals will not renege on the deal after so much time has been put into it. If you choose to try the nibbling technique, you may not want to ask for too much as this can break down the entire process.
2. Outright Refusal
One popular negotiation tactic that has yielded a great deal of success is the outright refusal method. This method works by outright refusing the original offer made to you, and asking them to do better. Often times the individual who is making the offer will actually negotiate with themselves and provide you with an offer that is much higher than the offer than was originally made. While this tactic might be simplistic in nature, it is a well documented method that has provided many negotiators with positive results for many years.
Conditioning calls for you to place a starting point in their mind prior to beginning the negotiation. For instance, if someone started to discuss a negotiation for the purchase of a boat with you, and you initially responded by saying “You’ll be wasting your time unless you are willing to offer $10,000 and haul it after the sale.” This allows you to give them a starting figure that is much closer to the end result you are looking for than you would have been otherwise. This is an age old method that has always been an effective negotiation tactic. Keep in mind that this tactic can also cause the individual you use it on to not make an offer on the item at all.
4. Calling Bluffs
Calling the opposing party’s bluff is a negotiation tactic that can really be to your advantage. For instance, if you have a house that is for sale for $200,000, and they claim that their bank will only qualify them for a $175,000 loan, you can call their bluff by saying that you can not let it go for less than $190,000. If you would like, you can also make up an excuse as to why you can not go any lower than that amount in order to make it seem as if you too have your limits. For instance, you could say that the money is going to cover your child’s college education, and that is as low as you are willing to go. By taking their financing problem and responding with an explanation of why that won’t work, you will be able to make them come out of their shell if they are truly interested in the product that you are selling.