Information given to another party that tends to modify their expectations prior to entering the actual negotiation. A salesperson sends a news report on price increases to pre-condition a buyer. The buyer, having read the news report, prepares themselves for a big jump in price. The buyer is relieved to see only a minor price [...]
Using reverse psychology to get someone to agree to move from a firm position. This technique is based upon the human need to assert one's individual freedom when it is challenged. A negotiator achieves the desired "reaction" from the other party by paraphrasing their negotiating position in a way that makes it sound more extreme [...]
Red Herring or Garbage on the Lawn: A tactic used to divert a party's attention from the real issue to something tangential or unrelated, allowing the diverting party to gain some advantage.
An arrangement where one company (the seller), agrees to sell products or services to a foreign purchaser, but also simultaneously agrees to purchase specified products or services from the foreign partner. Also known as parallel bartering and is the most commonly used form in a countertrade agreement in international business interactions.
A phrase that is simple to remember, mirroring confirmed research that shows, where one sets their opening position for any and all terms and conditions involved in a negotiation, that open will subsequently directly impact the outcome of the negotiation. One must "Raise the Bar" in order to do better upon completion. Often paraphrased as [...]
A negotiator may act crazy or irrationally and make a big scene. Sometimes the other side will give in to their demands simply to get the crazy person to stop doing what they are doing.
Making similar or like exchanges of information, concessions, introductions, money, or something else of value that are given by one party to another party. Think of: "Tit-for-Tat," or "You scratch my back and I"ll scratch your back," "I did this for you now you owe me." In general we feel obligated to return in kind [...]
Humans cherish security. We have a desire to avoid risk wherever possible. A negotiator who is willing to accept a greater burden of uncertainty with respect to reward or punishment enhances their negotiating power.
People talk too much. The less the other person knows about you, the better off you are. The more you know about them, the stronger your bargaining power. What you say and what you show may be used against you if it reveals your weaknesses. How much you choose to reveal is a matter of [...]
Once the other party establishes an offer, or anchor point, it is wise to immediately make a counter-offer. This minimizes the importance of the initial anchor point. This also signals your desire to negotiate in that you do not accept the initial offer. Do not adjust your BATNA or target based on this initial anchor. [...]