Scripts to Help You Negotiate Better Deals

If you enter into a negotiation with compromise or concessions in mind, you will likely compromise or concede too much. Although compromise is a tool you can use during the negotiation process, it is not the essence of negotiation. Simply stated, negotiation is a process to reach an agreement. All negotiations contain five clearly defined positions. There are three primary positions and two secondary positions.

The Three Primary Positions

LOGIC: The merits of your case, the sound reasons attached to your argument.

POWER: Your ability to penalize or reward the other party.

EMOTION: The human element — how goodwill and personal feelings effect the outcome of a deal.

The Two Secondary Positions

TRADE: When you bargain with the other party, offering them something in return for your requirements.

COMPROMISE: When one or both parties sacrifice something to bring the two parties closer together. For example: you split the difference.

A Smart Negotiator

A smart negotiator will spend as much time as possible arguing his or her case from a primary position, attempting to cause the other party to take up secondary position of trade or compromise.

Unskilled negotiators quickly offer trades and compromises as soon as their position is questioned. As soon as a buyer asks for a price reduction, the over-anxious salesperson goes for a trade or compromise.

Let’s walk through the process using the example of buying an automobile. Notice how the salesperson uses skilled negotiating to make the sale.

SALESPERSON: Well, John, what do you think? It’s a great car, isn’t it?

BUYER: It sure is, but you are asking too much for it. I will give you $7,500.

SALESPERSON: John, that is totally unrealistic. The sticker price is $11,000, and this car has lots of extras, so at $10,000, it is a very good value. (Logic)

BUYER: OK, I guess I could go to $8,500 at a push. (First compromise)

SALESPERSON: John, three people have test-driven this car today already and are thinking about it at $10,000. One of them is bound to want it before the day is over. If you want this car, John, you are going to have to do better than that. (Power)

BUYER: OK, I could go to $9,000, but no more. (Second compromise)

SALESPERSON: Listen, John, this car is perfect for you. You wanted fast, this car is fast. You wanted loaded, this car is loaded. John, you are gonna love this car. Don’t miss out just for the sake of $1,000. (Emotion)

BUYER: OK, I’ll split the difference with you, but $9,500 really is my absolute top offer. (Third compromise)

SALESPERSON: OK, John, that sounds fair, but how about this? Make it $10,000, and I will throw in a sun roof. What do you say? (Trade)

BUYER: A sun roof? If you throw in a sun roof, you’ve got a deal! (Fourth compromise)

In this example, the salesperson negotiated by using each position to move the customer toward his requirements. Keep in mind, however, that most customers also can negotiate within the positions. Suppose the other party clearly states, “This is my best offer. Take it or leave it.”

Remember, he is negotiating he has just taken up a power position. Now it’s up to you to decide whether to accept it or take up an alternate position of:

LOGIC: Because his argument is not reasonable or is without merit, or

POWER: Because of the consequences he faces if he refuses to reconsider, or

EMOTION: Because he is not being fair or that he should reconsider for the sake of their relationship with you.

This is followed by your secondary position of:

TRADE: What you will give him if he reconsiders, or

COMPROMISE: A splitting of the difference with him.

By using this process of negotiating, you will always reach the best outcome. You never have to leave another negotiation wondering what happened.