Eskom Procurement Book 2015

NEGOTIATION

7.6.1 SOME COMMON TACTICS

Literally dozens, if not hundreds, of potential negotiating tactics exist. The following summarises some of these tactics. • Shotgun: ‘We will not negotiate unless you reduce your rate.’ This tests power. If you are exposed to these tactics and your position is weak, talk about the overall benefits that may be lost by not negotiating. • Off-limits: ‘Let’s agree to some issues that we won’t discuss.’ This reduces the negotiable issues, and increases your power when buying. • Yes, but… : ‘Yes, we accept, but before we agree … can we have a bit more in this area?’ If you are prepared to concede, answer, ‘If you will sign with no further demands, then we can consider this extra.’ • Tough guy/Nice guy: The tough guy is high risk, but sets a good platform for the nice guy. • Russian front: The negotiator offers two closing packages, one of which is dreadful from the counterpart’s point of view. • Social smell: ‘If you don’t agree, just imagine the reaction you will receive from your branch manager and the executives.’ • Salami: Like the sausage, this is acceptable in thin slices. When the whole package is too much for the counterpart to swallow in one go, introduce it in phases over a period of time. • I have better quotes: This can be answered in one of three ways. First, advise them to accept, which is high risk but calls their bluff. Second, ask to see the quotes. Three, respond by saying, ‘So my proposal is OK, you only want me to justify the rate?’ • Linking: ‘If you’ll talk about X (your weak issue, our strong one), then we’ll talk about Y (our weak issue).’ It is generally not recommended to link issues during a negotiation. • Suppose: For identifying whether an objection is true or false, ask: ‘Suppose we can resolve this issue, will you agree?’ If the answer is ‘Yes’ – carry on. If ‘No,’ ask, ‘Why not? What is the real problem?’ • Nibbling: This involves getting that little bit extra after the main deal has been concluded. An example is a client asking for a reduction in his interest rate after giving you R300 000.00 worth of business. The nibble often works because:

x x The other party has a strong desire to close.

157 CHAPTER 7