The Do’ and Don’ts during Negotiations

Do listen carefully to the other party or parties.	Don’t make too many concessions at an early stage of the process.
Do leave enough room for maneuver in your proposals.	Don’t make your opening offer so extreme that you lose face if you have to climb down.
Do feel free to reject the first offer made.	Don’t ever say “Never” during negotiations.
Make conditional offers such as, if you give us this and that, we will agree to your offer.	Don’t ever answer a question with a simple “yes or no” during negotiations.
Probe the attitude of the opposition asking: what would be your feeling if…?	Never make the opposition feel stupid or look foolish.

Things to do during Negotiations

1 Put forward a proposal with as little emotion as possible: pay close attention to the oppositions’ proposal, use humour when appropriate, but do not try to be too clever; listen carefully to the wishes of the opposition which could be closer to yours than you expect.

2 Be willing to adjust your strategy if you can see a compromise early on in the proceedings.

3 Take notes of all the offers made recording them verbatim if possible.

4 Encourage agreements by saying “I know that everybody here is eager for agreement”.

5 Sit upright in your chair and lean forward slightly and use positive verbs when speaking.

6 Make your initial demands high than you expect to receive and offer less than you can give.

Responding to proposals

Avoid showing any immediate reactions when responding to an offer and do not be afraid of remaining silent after an offer, because the opposition will be assessing your reaction.

1 Ask for a break to consider new proposals and use stalling tactics subtly but sparingly but always indicate that every concession you make is a major loss to you.

Responding to Ploys

A “ploy” is a trick to confuse someone in order to get an advantage, or to make them do what you want. Ploys are used during negotiations to make you feel that you can never get what you are asking for. Therefore, it is very important to identify ploys and defuse them.

The Effects of Ploys is to:

1 Distract you and your team, thus allowing the opposition to dominate discussions.

2 Shift the emphasis of the negotiations against the benefit of the opposition

3 Manipulate your team into closing negotiations before you are satisfied with the offer.

4 Introduce new issues that are not relevant to the negotiations; therefore:

5 Deflect ploys with humour rather than with anger during negotiations; because,

6 Because ploys are tactics used in order to win during negotiations.

7 Countering ploys without getting angry is very important and takes time to learns.

8 If you are foiled by a successful ploy, think before you respond.

Table for Countering Typical Ploys and Tactics

NEGOTIATION PLOYS OR TACTICS	COUNTERING NEGOTIAION PLOYS
Making Threats: Warnings of bad consequences if you fail to agree the terms of the offer made by the opposition	Tell the other party: You cannot negotiate under threat; concessions will only be made if they prove the merits of their case.
Offering Insults: Questioning your professional ability criticising the quality of your products etc	Stay calm: Do not lose your temper or offer insults back but re-state your position firmly.
Bluffing: Making general threats that cannot be proved or that have no basis	Call their bluff: Refuse to accept their threats and then wait for their reaction.
Using intimidation: Power dressing, dominant handshake, keeping you waiting in an uncomfortable place, putting you in your place.	Recognise these as ploys Do not drop your original terms unless you gain concessions in return
Dividing and Ruling: Increasing disagreement in your team by using the Good Guy	Brief your team about what is happening and decide on positions to take within your team
Using leading Questions: Used to make you declare weaknesses in your negotiating position forcing concessions from your side	Avoid answering leading questions when you do not understand their intention or, attach conditions to any answers you give
Making emotional appeals: Claiming to be offended by your lack of trusting the opposition.	Affirm your commitment to achieving a fair settlement on business terms only
Testing Boundaries: Used to gain additional advantage through minor infringements of terms over a long period to your disadvantage.	Be clear on exactly what you agree to when you reach a settlement; always draw a clear list of agreed terms from the other party.

Tips for handling Ploys

1 Think before you answer a ploy or ask for an adjournment to consider your reply.

2 Engage only in arguments that are constructive, refuse to be diverted from them.

3 When you agree to talk “off the record” always keep your word either way.

4 Use informal chats to smooth out negotiations and to show you are reasonable.

5 If the other party calls for adjournment, either agree to it or call off the negotiations.

6 Pin point the most receptive listeners and address your remarks to them.

Closing Negotiations

Negotiations can be brought to a successful closure only when parties have made concessions that are mutually acceptable in order to reach agreement. However, if you are the weaker party, bargaining can be stressful and costly. If you are forced to make concessions, it is important that you take along term view of the consequences. Offer the smallest concession first, that way you do not need to negotiate for along time, but do not concede ground unless you receive something in return.

Tips for closing Negotiations

1 Read over any notes covering the early part of your negotiations and record fully all agreements finalised at the close of negotiations.

2 Discuss and define any words that are ambiguous in a written format and make sure you do not ignore issues in order to speed up negotiations.

3 Be assertive but, not aggressive when you are closing the deal.

4 Look at the other party when making your final offer and if you are not satisfied with the deal do not sign it.

A carefully selected set of phrases can indicate that you are about to make your final offer, but use firm unequivocal language when making an offer, and reinforce the impact of your words by using a calm, authoritative tone of voice and maintaining steady eye contact. Use phrase like:

1 “I have no authority from my head office to make another offer”:

2 “This is my final offer; I have no room whatsoever to move further than this”

3 “I have already gone much further than I intended to go”

4 “I am running out of time. Agree to my proposal, or I shall have to leave for another meeting.

Remember though, that these statements can rebound to your disadvantage if the opposition says “Well I am not prepared to be coerced in any form”.

Methods of Closing Negotiations

METHOD OF CLOSURE	FACTORS TO CONSIDER
Making acceptable concessions that help to clinch the deal without jeopardizing you party’s position.	This move can break deadlocks, the other party may not agree, but making a late offer can undermine your credibility.
Splitting the differences between all the parties means all agreeing to move to the middle ground to reach a deal.	Neither party will feel they have lost, this is a good example of a win/win agreement which is the ideal goal for negotiations.
Offering two acceptable alternatives encourages agreement but different attractive choices.	There is no guarantee that the other party will agree to either of the choices, and it is difficult to find two equally attractive alternatives.
Introducing new Incentives or Sanctions putting pressure on the other party to agree.	Hostility can be caused, can alter the whole balance of power and force agreement.
Introducing late new ideas provides new incentive for new discussion and agreement.	Allows room to maneuver and to make new concessions; or can undermine credibility.
Adjournment due to stalemate to allow each side to re-consider what would happen if there is no agreement.	Positions can change after consulting experts, and it can be difficult to reconvene again, resulting in serious consequences for both sides