Defensive Tactics
Week 2 Recap: Strategic Negotiation Tactics
This week, we explored four critical negotiation tactics—each designed to either protect your interests or gain an advantage during negotiations. Here’s a look back at what we covered:
Day 6 - Put a Value on Every Concession:
We kicked off the week by discussing the importance of assigning value to every concession. As a supplier, when you’re asked to make a concession, it’s vital to understand why the other party values it and to ensure that you’re compensated fairly. Whether it’s tying rebates to volumes or setting minimum order amounts for free shipping, putting a value on concessions helps you keep some of the value for yourself while also managing expectations and protecting your bottom line.
Day 7 - Nothing is Agreed Until Everything is Agreed:
Next, we delved into the defensive strategy of ensuring that nothing is finalized until everything is agreed upon. This tactic helps you maintain control in negotiations by preventing small, isolated agreements from adding up to a deal that doesn’t serve your interests. It’s particularly effective when used alongside strategies like valuing concessions, ensuring that every aspect of the deal is considered in context and revisited as needed.
Day 8 - Cherry Picking:
We then explored the “Cherry Picking” tactic, a strategic approach to unbundling and analyzing specific components of an offer. By signaling disinterest in or willingness to adjust certain items, you can test what’s truly important to the other party. This not only helps you prioritize your negotiations but also allows you to trade off less critical elements for better terms on what matters most to you. It’s a subtle yet powerful way to claw back concessions or test the waters before finalizing a deal.
Day 9 - Facts and Data:
We wrapped up the week with a discussion on the power of facts and data in building strong contracts. While facts and data might not be the most persuasive tools for winning hearts, they are essential for creating solid, reliable agreements. However, we also acknowledged the potential pitfalls—data can be manipulated, volumes exaggerated, and service levels misrepresented. The key takeaway is to use data as your foundation but ensure your contract accounts for any discrepancies, with clear provisions for when reality doesn’t match the numbers.
Looking Ahead:
Next week, we’ll be diving into tactics and techniques that make up a very manipulative toolkit—the DENNIS system. Stay tuned as we explore these more controversial strategies and their impact on negotiations.
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