“Frequently asked tactical questions”

Here are the main tips on how to deal with different kinds of problems during a negotiation:

Price:

• Don't state a monetary range of what you're willing to pay, because this would give away your reservation price. Instead, work in terms of your bottom line. The only time you should reveal your range is at the end of the negotiation in order to discourage the other side to push you past it (saying you can only go up to X amount when it is in fact a middle range or lower price you were expecting to pay; the person will then feel they have pushed you to your limits so they will more likely accept that price).
• Only reveal the bottom line once you've reached it. Say it with emphasis and firmness so the other side knows you won't go below (above) that.
• If the other side opens with an incredibly unreasonable number, you can either make a joke in order to tell them you won't even consider it; state the number is entirely out of range and talk about interests instead, bringing up the number down the line; say the offer is entirely out of range and that you fear a deal may not be possible; try to get the other side to bid against themselves.

Process:

• It is not a good idea to bid against oneself. Acknowledge you have made the offer and that they must counter-offer. If they don't, say you are aware you're making two moves in a row and that it won't happen again, so they shouldn't get used to it. Broaden the discussion to include the interests.
• It is okay to bluff. “Lying, however, will be grounds for a legal action. Creating a false impression or failing to disclose material information may be a formal breach.” You must make sure what you bring to the table is real and doable, but that doesn't mean you have to disclose every little detail.
• “Dealing with easier issues first will build momentum, deepen the parties' commitment to the process and enable the parties to become familiar with each other's negotiation and communication styles.” However, sometimes it is better to start with difficult issues: if you don't reach an agreement on those then you won't have wasted any time with smaller ones.
• Unexpected developments might endanger potential agreements or undermine deals already made. Be flexible and consider that if something happens and you need to change the deal the other party will be more willing to work it out – “what goes around comes around”. “Analyze how the unexpected development affects the decision to go forward”: is a deal still possible? Do you have to renegotiate several points or just one?

People problems:

• Collaborative negotiator vs positional hard bargainer: the later wants to win at the other side's expense and expects all the compromises to come from the other side. When facing such a negotiator it is unlikely you will be able to reach a win-win deal. Ideally, the collaborative negotiator should try to “convert” the hard bargainer to create some value in the deal; for that he/she needs to understand what are the underlying interests in the other's positions.
• When the winning party wants to change the deal after it is made, this can mean two things: they are testing you or they really want to change it. If so, then state you agreed to a total package and if they want to change one aspect they need to be willing to change other aspects. If they don't then you have to decide if that is good for you or if you should drop the deal.
• If the other negotiator has “a temper tantrum” try to help them regain control. Don't respond in equal fashion: this will escalate the situation. Say nothing or say they should cool off because you won't negotiate in such conditions. If they just wanted to throw you off, then keeping your cool is the best way to react. If necessary, try to ask management to assign someone else to deal with you.
• If the other side is lying or they don't intend to follow-up with their promises you can: make sure they understand what they are committing to; demand documentation; insist on enforcement mechanisms (penalty for non-compliance or positive consequences for an excellent work).
• Negotiate face-to-face is the ideal situation because you can pick-up on non-verbal cues. People are also less likely to lie in face-to-face meetings, afraid of being caught. Negotiating by email or telephone can be done but it is not ideal.

Implementation tools:

• Preparing for a negotiation
• Identifying your BATNA
• Setting your reservation price
• Assessing the other side's position and interests
• Authority : theirs and yours