Day 5 - Recap: What Have We Learned So Far?
As we wrap up the first week, let’s do a quick run-down of the four tactics we’ve covered so far. These methods are powerful tools for companies to get what they want—but they come with significant risks, not just to business relationships, but to the broader community as well.
1. The Columbo Tactic:
How It Works:
Introduce a critical piece of information at the last moment, just as the deal is about to close. It’s a classic “Oh, just one more thing…” move.
The Risks:
This tactic can leave suppliers feeling blindsided, forcing them to make quick, unplanned adjustments. This might lead to quality issues or corner-cutting as they scramble to meet unexpected demands.
2. Salami Slicing:
How It Works:
Break down a large request into smaller, seemingly harmless ones, gradually gaining more concessions until you’ve achieved a much larger goal.
The Risks:
Pushing suppliers too hard can drive them to find ways to recoup losses, potentially leading to underpaid workers, outsourcing, or compromised product quality. This tactic can strain long-term supplier relationships.
3. Good Cop, Bad Cop:
How It Works:
One person takes a harsh stance (the “Bad Cop”), while another steps in with a more reasonable offer (the “Good Cop”). This dynamic pressures the other party into making concessions.
The Risks:
Suppliers may agree to unsustainable terms, leading to quality issues or delays. The strain on the relationship might make it difficult to maintain reliable supply chains over time.
4. Mirror Them:
How It Works:
Subtly mirror the other person’s body language to create a subconscious connection, making them feel you’re just like them.
The Risks:
This tactic can create distrust if the other party catches on, potentially leading them to push back harder in negotiations or undermine the agreement through reduced commitment to quality.
Shared Risks and Community Impact:
These tactics, while powerful, can have serious consequences when used aggressively. They can push suppliers to compromise on quality, exploit labor, or cut corners, all of which can damage business relationships and harm the community.
When companies like Walmart or RBI negotiate with Canadian suppliers in bad faith, the local economy can suffer. Small businesses may struggle to afford Canadian labor, leading to reliance on questionable labor practices or the outsourcing of jobs overseas. The long-term impact? A weakened local economy and an erosion of trust in business practices.
Looking Ahead:
Next week, we’ll explore some “more positive” tactics. Yes, there are strategies out there that can help build relationships and foster trust—though, like everything, they come with their own set of challenges.
Stay tuned as we aim for a bit more balance in our exploration of negotiation tactics. Because while the methods we’ve covered so far are powerful, it’s the positive approaches that often lead to the most sustainable outcomes.