Techniques for Effective Negotiation
In this session, we will explore various techniques to enhance your ability to convey information and negotiate effectively. It’s crucial to be authentic and natural during negotiations; otherwise, the process may not yield the desired results. Adapt these techniques to fit your personal style and make them work for you.
Equalization
One essential technique to employ consistently throughout the negotiation process is equalization. For every point raised by the other party, you should counter with an equally compelling point. Here are a few approaches you could take:
For instance, if you’re negotiating a raise with your boss and they mention that your last raise was just ten months ago, while most employees undergo salary reviews every 18 months, consider these options:
- Disprove the statement: “According to company policy, salary reviews should occur every 10 to 20 months.”
- Differentiate yourself: “Since my last review, I have changed positions twice within the organization.”
- Present supporting evidence: “Other managers at my level have received salary reviews every six months.”
- Make the comment irrelevant: “As a management-level employee, I’m not part of the union, so you can negotiate directly with me.”
Building Your Case
Given the effort you’ve invested in gathering facts, you should have a strong foundation of information to support your position.
Revealing Supporting Points
Present your supporting points gradually, especially if your negotiation occurs over multiple meetings. Strategically place weaker points between stronger ones to ensure you start and finish on a positive note.
The “It’s Too Bad…” Technique
This technique is particularly effective when the major issues have been resolved but minor details remain. For example, if your boss agrees to a raise but you still need to finalize your schedule and vacation time, you might say, “I’m really pleased we’ve settled the salary issue. It’s a shame we can’t also resolve the scheduling matter and wrap everything up.” This approach helps establish common ground and paves the way for further negotiation.
Wearing Them Down
This strategy is useful when your position and the other party’s stance seem significantly apart, making resolution seem unlikely.
For instance, suppose you’ve found your ideal home, but your budget is R250,000 while the asking price is R500,000. In the first meeting, you point out that property assessments have sharply declined over the past year, revealing an assessed value of R300,000. The sellers then lower their price to R350,000.
In the next meeting, you highlight that R50,000 in landscaping and repairs will be necessary, bringing the price down to R300,000. During the third meeting, you provide a report from an environmental agency indicating that cleaning up a furnace oil spill will cost R10,000. The sellers, eager to finalize the sale and weary of the ongoing meetings, then reduce their asking price to R275,000.
While this is still above your budget, it is significantly closer to what you can afford compared to their initial offer.
Mix It Up
With this method, you provide a variety of information and jump around between topics, without resolving any of them. Essentially, you’re trying to confuse the other party.
Bridge the Gap
Once again, common ground can help you bargain for what you want. Let’s continue with our house buying example. You could say, “It really is tough trying to sell your house, isn’t it? Man, I’ve got mine on the market right now so I can buy your property, and it’s a nightmare!” The sellers will likely agree with you, establishing sympathy, empathy, trust, and common ground.
