19 Apr 23
Collaborative negotiation tactics may result in higher customer loyalty, repeat business, longer terms of engagement, and a high lifetime value.
Negotiation is an important skill to get what you want while building and maintaining trust in your relationships. Let's dive into three different negotiation tactics and look at some examples of how to respond to each tactic effectively.
Have you ever seen Star Wars?
In that series, "The Force" is a powerful tool that can be used for good or evil, depending on who's using it and how. Similarly, different negotiation tactics can be used in different ways to help or harm a negotiation. Knowing how to use them effectively can make all the difference in getting a good outcome in a business deal rather than being taken advantage of by someone who knows how to manipulate the situation.
#1 Collaborative Tactics
If you want to strengthen your relationship with your customers and reap long-term benefits, consider using collaborative sales negotiation tactics.
These tactics can help you reach mutually beneficial outcomes that enhance the value of the relationship. By working together with your customers, you can improve customer loyalty, encourage repeat business, and extend the duration of your engagement. This can ultimately lead to a higher lifetime value for both parties.
For your most important accounts, it's especially important to use collaborative negotiation tactics to build a strong foundation of trust and partnership.
Examples & Countermeasures
| Tactic | Definition | Countermeasure |
| Trade-Off | Exchanging options of differential value and cost to each party. |
Stress the balance of value. Offset offers with asks of equal or greater value to you. |
| Trial Balloon | Posing a hypothetical option/approach to test the other party's response. (E.g. "What if..." or "Suppose I could…") |
Clarify the offer and level of commitment. Avoid over/under reaction without investigating implications. |
| Shared Interests | Reminding the other party of the ways in which your interests complement each other. |
Be clear about where your interests converge/diverge. Consistently weigh the balance of value and cost to both parties. |
#2 Neutral Tactics
Neutral tactics can work for or against you, depending on how you use them.
These tactics involve sharing information in a direct and honest way, without any hidden agenda or tricks up your sleeve. In some situations, this approach can help build trust and foster collaboration. But in other scenarios, it could be used to manipulate or deceive the other party.
Examples & Countermeasures
| Tactic | Definition | Countermeasure |
| Deadline | Incentivizing action by a certain date. (E.g. This offer expires on Friday.) |
Question the validity of the deadline. Stress the value of the deal, the solution and the relationship over the timeline. |
| Higher Authority | Deferring the final authority to make a decision or grant approval to a third party (someone generally not present). |
Express dissatisfaction with wasting time with someone other than the real decision-maker. |
| Budget Constraints | Establishing a hard line about budgetary limits. |
Identify the interest behind the budget constraint position. Use variables (scale, timing, customization, etc.) to create solutions within the budget. |
#3 Manipulative Tactics
Manipulative tactics are when one party takes advantage of or tricks the other party into conceding. It's best to steer clear of these tactics whenever possible since they can cause harm to relationships and lead to mistrust.
We've all probably come across manipulative tactics before, especially in places like used car lots with pushy salespeople or timeshare pitches. However, there are some methods that can be used in a collaborative manner, depending on the context.
Manipulative approaches are typically used when there is no value in establishing a long-term relationship, like in a one-time transaction. In these cases, the seller is mainly focused on closing the deal and may manipulate or deceive the buyer to get what they want. Unfortunately, this type of behavior isn't the foundation of a positive long-term business relationship.
Examples & Countermeasures
| Tactic | Definition | Countermeasure |
| Future Promise | The promise of future gain in exchange for concessions in the moment |
Ask for documentation of any future promises. Build terms into the contract that provide advantages to you if the promises are not kept. |
| Threats | Making drastic ultimatums to pressure concession. |
Appeal to the importance of a fair and reasonable process in order to achieve shared interested |
| Expose Competitive Information |
Offering up a competitor's prices and/or information in the hopes of eliciting a better deal. |
Know your competitors, stress the unique benefits of your solution, and return to your value proposition. |
Conclusion
Not every negotiator (even in a business-to-business transaction) will approach the negotiation with a collaborative mindset. It’s important to be able to both recognize and deal with the manipulative tactics you encounter. We discuss dozens of these different methods in our Value-Driven Negotiation Workshop.
By learning to identify and name the appropriate tactic, you can begin to take away some of the power of that tactic. This also puts you in a better position to respond appropriately. Tactics can be used for good or evil, much like force.
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Have you ever come across any of these techniques? How did you handle it? Share your tips and experiences here.
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