Final Flashcards
Trial Balloon
A way of testing the water to see if the other side is going to accept your proposal
“What if….” “Suppose we…..” “If we were to….”
Trial Balloon
Precedent
Past behavior serves to justify the action that you are requesting
“We have always done it this way” or “We have never done things this way before”
Precedent
Limited Authority
The final authority rests elsewhere
“The boss will have to authorize this matter’
Limited Authority
Missing Person
Referencing someone who is not present in the deal
“Sally is not here and we must have her in order to continue - let me make sure that is OK with her.” “Rupert is in Kansas and he has the necessary report - we cannot continue without that critical piece”
Missing Person
Association
Affiliation with an institution, etc.
“We are working with John on this project”
Association
Blanketing
Everyone is doing it - currently
“Everyone is doing it”
Blanketing
Bogey
Hard on the issue and soft on the people
“I really like you Bill, but…”
Bogey
Flinch
Recoil sending a not OK message to the other party
“What!! You are kidding!”
Flinch
Legitimacy
Printed word of quote backs you up
Example - a document, agreement, technical data, sheet of figures, advertisement, etc.
Legitimacy
Deadlines
Pressure the other party to make a decision within a given period of time
“You have 5 minutes to make a decision”
Deadlines
Crunch
Pressuring the other party for concessions
“You have to do better than that”
Crunch
Nibbling
Asking for minor concession
“Will you also cover the cleaning fee for the room rental”
Nibbling
Limits
Setting up a parameter in advance of the detailed discussion
“I only have $10,000 to work with in this case
Limits
Take it or leave it
Negotiation by ultimatum
“This is my final offer”
Take it or leave it
Withdrawal
Appearing as if you are going to leave
“It does not look like we are going to have a deal here”
Withdrawal
Good guy/Bad guy
High pressure tactic. One person is demanding and difficult while the other person is very soft and reasonable
One mean and one nice
Good guy/Bad guy
Reversal
Taking back a concession or reversing a position, citing dissatisfaction with another item within the negotiation
“I cannot agree to that price if you are not going to buy both items”
Reversal
Exploding offer
An offer with an extremely tight deadline in order to pressure agreement
“This offer expires in 3…2…1…”
Exploding offer
Split the difference
Presumes the parties started at fair opening offers, and agree to “meet in the middle” on an agreement
“Want to just go in halfway”
Split the difference
Sweetening the deal
Creating a reverse nibble to entice the other side
“I’ll give you X if you agree to his deal”
Sweetening the deal
Low Ball/High Ball
Extreme anchoring - risks losing credibility
Ex. price way above or below your actual price
Low Ball/High Ball
Snow Job
Overwhelm the other party with too much information
Ex. give too many details to overwhelm
Snow Job
Aggressive Behavior
Overbearing posturing or stance. This is high risk
Ex. acting extreme
Aggressive Behavior
Intimidating Language
Can be educational or sophisticated use of language
Ex. Using big words
Intimidating Language
Logrolling
Exchanging/Conceding items that are high priority items for one party while they are low priority items for the other party
Ex. giving up what you don’t want to get what you want
Logrolling
Strategies
Planning - take a comprehensive inventory of issues presented Evaluating the relationship Create value Claim value Share the wealth
Steps
Set goals Define strategy Establish a plan Identify tactics Negotiate Document results
