The 8 negotiation techniques

The 8 classical negotiation techniques:

How to build your negotiations

As an entrepreneur, managing director or decision maker, you have to secure the best possible deals. The Management of the Sales Pipeline, which you can read about in other blog posts, contributes to this. You can learn about definition and relevance, success probabilities, the right target, relevant key figures and tactics for development and filling, by clicking on the respective links.

However, they must not only find and prioritize the relevant deals, but also close them at strong terms. Conducting negotiations is an essential part of targeted offer processing, both in the acquisition of new customers and in the optimization and expansion of existing mandates.

The negotiation process consists of four phases: In the first blog about the negotiation process, you learn the seven steps that are ideal for preparing a negotiation. The second part is dedicated to the phases of leading, negotiating and securing. Furthermore, external circumstances and the type of deal influence the process over the entire period.

There are eight classic negotiation techniques:

  1. dumping
    • Technique: enter with extremely low offer
    • Advantages: Much room for negotiation; best deal possible
    • disadvantages: No way back if your opponent refuses; not constructive
    • Reaction: react with a high offer or wait for better offers
  2. deadline bluff
    • Technique: get in with the wrong deadline
    • Advantages: Opponent signs early and comes under pressure
    • disadvantages: loss of credibility when tactics become obvious; not constructive
    • Reaction: Do not let yourself be put under pressure or in a hurry, use problem-solving approach
  3. love it or leave it
    • Technology: Presenting the final offer
    • Advantages: make quick decisions, get the best deal
    • Disadvantages: high risk of negotiation ending, not good for long-term relationship
    • Reaction: Find out reasons, discuss alternatives
  4. good cop / bad cop:
    • Technique: two people in negotiation - one is very aggressive and makes no concessions - the other is understanding and seeks solutions
    • Advantages: irritates the opponent and can lead to more concessions
    • disadvantages: Risk of not being taken seriously can easily be exposed as a tactic
    • Reaction: strictly separate facts from emotions, expose this "game" as not helpful
  5. early concessions
    • Technique: make a small concession at the beginning, later demand several as an answer
    • Advantages: creates valuable tradable goods, no negative impression
    • Disadvantages: They can seem unimportant, works only once
    • Reaction: Know the decision maker (power map), motivate opponents to close quickly
  6. consent and approval
    • Technique: You say you have to ask for approval; you come back and say the deal was not approved to get further concessions
    • Advantages: low risk, you play the Good Guy
    • disadvantages: If you give in, you lose respect, you might destroy a deal you want to make
    • Reaction: Stick to it, agree to the process early
  7. interest bluff
    • Technique: Pretend to have an interest that the opponent cannot fulfill. Use this to ask for other concessions in return
    • Advantages: You have a lot of room to negotiate and act like a tough negotiator
    • disadvantages: negotiations could end here, you could kill the relationship
    • Response: Ask opponent to justify interest, agree and ask for big concession
  8. tease & turn
    • Technique: Make an advantageous offer for your opponent. Then make a second one, which is similar, but more advantageous for you
    • Advantages: Can pass unnoticed, can cause a lock-in
    • disadvantages: Can destroy credibility, can also damage the relationship
    • Response: Demand the first mentioned tradables and concessions, have a contract manager available at an early stage

Keep in mind that these techniques all involve risk and may harm your business relationship. Therefore, take these classic possibilities as a guide in the development and consider which tricks and tactics you can apply.

However, always keep to the 10 commandments, which will be discussed in the coming blog, in order to maintain your relationships in the long term.