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How to respond to negotiation tricks

Desperate times call for desperate measures. Or do they? Many feel that in order to get an “edge” in negotiation, they need to resort to the use of gambits. Gambits are essentially negotiating tricks that help the negotiator gain value in the short term but damage the long-term relationship and the opportunity to achieve future gains. I do not advocate ever using gambits. However, it is inevitable that you will encounter people who use gambits. As a result it is very important for you to be able to recognize and counter them. Below are some gambits and suggested countermeasures.

Negotiation Gambits:

Gambit Description Why it works
Padding / Decoy / Red Herring Adding non-essential issues to real issues
  1. Provides trading room
  2. Reduces others aspirations
Countermeasure
  1. Identify-question validity*
  2. Create own red herrings & make sweeping trades
Just one more thing/Nibble Adding on a last minute item right before deal is struck
  1. Other is tired
  2. Don’t want to jeopardize main deal
Countermeasure
  1. Reopen entire deal
  2. Include “extra” in cost
The Smart Dummy / Belly Up Slow to understand leads to more concessions Impatient people make unilateral concessions
Countermeasure Don’t stray from original goals!
Funny Money Changing the shape of money (i.e. percentages, monthly payments, etc.) Alternative forms of money make it easier to spend
Countermeasure Think in terms of real profit
Good Cop-Bad Cop One person plays “bad”, so other in comparison seems “nice” and more reasonable Good engenders trust, put down defenses, make concessions to nice partner
Countermeasure
  1. Focus on original goals
  2. Hard bargain with both
  3. Divide and conquer
Limited Authority Cannot make decision, must resort to higher authority
  1. You make concessions to person 1 and then further concessions to person 2
  2. Wears you down
Countermeasure
  1. Ask if other has authority first
  2. Protect first agreement
  3. Re-open entire deal
Too Good to be True Information Important information is left where you can conveniently find it Reveals “false” position/RP without raising suspicions
Countermeasure Beware-Few things in life are free
Puppy Dog Get endeared to a product by taking it home Build commitment/reasons why want it
Countermeasure Don’t accept offer
Low Ball Lured into deal by low offer price; get hooked, add costs Build commitment/reasons why want it
Countermeasure
  1. Know what want; ask price in full
  2. Question and walk away
High Ball Lured into deal with high compensation; get hooked, offer deflated Lured into deal with high incentives
Countermeasure Get all “too good to be true” offers in writing
Crunch/Vise Forcing you to make a counter-offer “you can do better than that” Feel compelled to comply
Countermeasure Reframe statement and pin them down “How much better”
Ultimatum Forcing you to accept or reject offer Believe person can do no better
Countermeasure
  1. Question and walk away
  2. Help other back down (face saving)
  3. Create new alternatives
Time Deadlines Imposing time constraints; lead to quick and large concessions Feel need to seal the deal; even if not satisfactory
Countermeasure
  1. Question legitimacy
  2. Know BATNA
Norm of Reciprocity Give something and hint that other owes in return Guilt/Feel obligated to help
Countermeasure
  1. Don’t accept
  2. Give something inconsequential in return
White Elephant Giving you their problem Guilt/Feel obligated to help
Countermeasure
  1. Question validity
  2. Reframe

This entry was posted on Monday, October 20th, 2008 at 10:16 pm and is filed under Negotiations. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “How to respond to negotiation tricks”

  1. ridiaoae pornec Says:
    December 24th, 2008 at 10:50 am

    fitting position! nicely done!

  2. Rob Eckert Says:
    January 19th, 2009 at 2:18 pm

    Thanks for the information,I’ll keep it in mind!

  3. Tony Brown Says:
    September 24th, 2009 at 10:17 am

    I don’t know If I said it already but …This blog rocks! I gotta say, that I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks, :)

    A definite great read..Tony Brown

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