Are you facing a negotiator you don’t think you can
trust? Here are five common types of deception you may come
across when dealing with difficult people in a negotiation
situation, according to Richard Shell:
1. Lies about bottom lines and alternatives.
A counterpart’s statements about just how low (or high)
she’ll go with her offers should be taken with a grain of salt, writes Shell.
Avoid being taken advantage of by researching the other side’s claims and
reputation, and by exploring your alternatives to the current deal.
2. “Too good to be true” offers.
Beware an offer that’s much better than you expected,
especially from a counterpart you don’t know well. After you commit to a
lowball price, the other party might try to tack on less-desirable deal terms.
One tip-off that you could be getting a raw deal, according to Shell, are
questions that are hypothetically phrased, such as “Would you buy this today
for $X?” If an offer is framed in the abstract, ask for more concrete
wording—such as, “I am offering this to you today for $X”—and insist on seeing
the fine print.
3. Escalation of commitment.
You may find you’ve made a significant investment, such
as considerable time or an up-front payment, before you’ve agreed on a deal.
The other party may be aware that you (like most people) will be less willing
to walk away and admit defeat after sinking resources into the negotiation. When
faced with such a bargaining strategy, remember that such “sunk
costs” are gone forever—and that there’s no shame in walking away from a shady
deal.
4. Lack of reciprocity.
According to the widely accepted norm of reciprocity,
each concession in a negotiation should be rewarded with a roughly equal
concession from the other side. If a dealmaking counterpart fails to match your
concessions or only pays lip service to the process of exchanging offers and
commitments, don’t negotiate any further; confront him about it, and walk away
if he won’t cooperate.
5. Last-minute nibbling.
Have you ever had a counterpart make a modest request
just before you’re about to ink the deal? By preying on your desire to wrap up
a hard-won negotiation quickly, the “nibbler” may succeed in gobbling up
several more percentage points of value, cautions Shell. His advice: Shun the
request unless the nibbler agrees to a matching concession.
Adapted from “Lies, Lies, and More Lies,” first
published in the August 2010 issue of Negotiation Briefings.
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