Negotiation Techniques Pt. 4 (Anchoring) - 022

In this episode of ProcurementZen we continue the ultimate list of negotiation techniques. In this episode Phil Kowalski puts focus on anchoring techniques.

Episode highlights

• Big initial number - big numbers if you aim high, small numbers if you want low prices
• Look into past techniques. Works very good because of consistency and commitment
• Reframing - putting a fact that is important to you to another frame of reference.
• Reducing their expectations - Open negotiations by stating what is impossible to you.
• Downplaying the other side - downplaying the other side’s facts.
• Our rules - also known as policy based. Asking for proof is best way to fight this technique if applied to you
• Black and white - refers to contrast. This technique is about the relation between topics.
• False split - good negotiators never split the difference.
• Topic jumping - It's a confusion tactic that you use to derail the other side.
• Stroking one's ego - appealing to other people's ego is powerful.
• Doing favors - We humans tend to give back. It's very hard for us to owe something.
• Flattery - They help to establish a positive mood.
• Negotiations performance compliments - Use this negotiation tactic on small items, then you can ask for return on big items.
• Gaslighting - a very aggressive tactic, so be careful if you want to use it.
• Open frames - using open frames as hitting up the other side's imagination.
• Introduction of new people - allows to question previously agreed items.
• Electronic negotiations - through the design of the tender, the negotiator sets the frame.
• The power of the first action - This means that if you see a first offer as reasonable, you tend to go for it and not wait for the next one.

Key points

1. Good negotiators never split the difference. Only split the difference when you have artificially increased the values.
2. Create a positive mood while negotiating.