Chapter 6: Tactics and Countermeasures

In any negotiation, tactics are regularly brought into play. It is vital that we know the most common ones. It is equally vital that we know how to counter if they are used on us in the process. If we are in buying mode, we can try these tactics or some variant of them. If we are in selling mode, we can learn ways to respond appropriately when these tactics are used on us, as they invariably will be.

Knowing and therefore identifying any tactic takes the emotion out of the system. It frees your mind to think about the countermeasures - ways to deal efficiently with the tactic. These tactics often appear as non-negotiable issues but in fact rarely are!

Aspiration Lowering

How does the other person attempt to lower our aspirations on price? There are two commonly applied tactics. The first is to compare your offer with your competitors' terms or product. The second is a straightforward request.

Comparing Your Offer

Cost	They are cheaper.
Delivery	They can do the audit 10 days sooner.
Quantity	They are providing sample letters, adverts and telesales scripts.
New features	They provide a 60-day helpline.
Security	They guarantee our taxation liability, they guarantee safety.
Payment	They allow 90 days for payment.

Straightforward Request

Here the other person may use a tricky phrase: 'At this point it is our company policy to agree suppliers' discount level' or 'It is normal business practice in these cases to agree supplier discount.'

Price is a legitimate and obvious target in any negotiation and every sensible buyer should try it. The phrase 'It is normal business practice' is clever; it can easily catch you out. It can subtly put pressure on you to conform to what is being declared as normal. We should never succumb to the pressure to drop our price.

The first line of counter-attack is to ask 'Why?' You can put it in a statement like this: 'You are suggesting that our price is too high. Can I ask too high in relation to what?'

What is the reason for asking a question like that? Simply that our counterpart's attempt to rot our price could mean any one of these:

• It's more expensive than I thought.

• I want a discount.

• This is more than I can sanction.

• Somebody else is cheaper.

• I am not yet convinced of the value.

• This is actually outside our budget.

Understanding the real reason behind the challenge to our price enables us to respond appropriately. We then trade; in other words, nothing at all is ever given away. Any ultimate adjustment in price must always be exchanged for something else from our counterpart.

A pre-emptive countermeasure to this tactic is to ask for more in the first place. Buyer or seller - ask for more, you get more. Aiming higher gives us room to negotiate. It means giving ourselves more room to make concessions; it means that we don't keep eroding company margins. The price, however, must be realistic and perceived to be legitimate. We can expect our counterpart to challenge anything that looks artificially high - we must have good reasons. If they think we are trying it on, they will have a cynical view of the rest of our negotiations that will prove most unhelpful, and jeopardise future business.

A further practical countermeasure is to stop, then slowly and deliberately use a calculator to see the real costs of conceding to price challenges. Let your opponent see you using it, too. Multiply by the number of clients, number of days per year, so that both you and they see the real impact of any concession. It also shows that you have done your homework and that you have legitimate reasons for defending that price.