Summary of Frequently Asked Tactical Questions

FAQs about the price

• Don’t reveal your reservation price even if asked for it, rather work in terms of your bottom line („the best I can do“). The only reason to reveal your reservation price would be towards the end of a negotiation in order to discourage the other side push you beyond it.
• Only reveal your bottom line when you’ve reached it. And if you do so do it with appropriate emphasis or firmness.
• What to do if the other side opens with an incredibly unreasonable number?
1. Make a joke to indicate that you don’t consider the other side’s number a serious offer.
2. Clearly state that the other side’s number is entirely out of range. Go back talking about interests and explain your perspective of the deal. Let pass some time and discussion and than propose a number. Do NOT refer to their initial offer, ignore it. 
3. Indicate that the offer is entirely out of range and express your concern that a deal my not be possible: „Why don’t you confer with your people and get back to me with something more realistic?“.

FAQs about process

• Try not to bid against yourself, don't make two moves in a row. If however the other party pushes you to do so, announce your awareness of what you are doing. Explain your reasoning. To bridge the gap consider broadening the discussion of the partie’s interests.
• Is it okay to bluff of to puff during a negotiation? Sure. You need not reveal all the circumstances that make you willing to conclude a deal. However, lying about a material fact is almost certainly grounds for legal action.
• It is generally better to reach agreement at the end, not issue by issue as you would risk to lose opportunities to create value through trades. 
• Dealing with easier issues first will build momentum and allows the parties to become familiar with one another. On the other hand, starting with the difficult issue will not cause you any waste of time on the smaller issues in case you cannot reach an agreement on the difficult issue.
• If unexpected developments appear try to analyze how it affects the decision to go forward, determine if the deal still makes sense. Contact the other party immediately, aknowledge the unexpected nature of what has happened, affirm your commitment to working on the problem and jointly discuss the underlying principles etc.

FAQs about people problems

• A positional hard bargainer aims to win at the other side’s expense. An effective collaborative negotiator should be able to deal with this type of negotiator and should seek reciprocity of refrain from providing additional information. The question is whether the collaborative negotiator will be able to „convert“ the hard bargainer at least sufficiently to create some value in the deal.
• The winner’s curse is that they will always feel that they could have gotten more. If the other side tries to change one item, express surprise or disappointment. If they are willing to renegotiate other issues in return then they are serious, if not they just wanted to test you. 
• If the other side has a temper tantrum don’t respond in the same way but try to help him regain control. Either sit quietly and say nothing or say something like „This is getting us nowhere. I’m inclined to leave and let you cool off. Is this what you want?“. Keep in mind that you have some control over who you will deal with.
• If you don’t believe what the other side is saying ask for back-up documentation and insist on enforcement mechanisms such as penalties for non-compliance. 
• The best way to negotiate is the negotiation face to face. People are less likely to lie in person. Negotiating by email contains the danger that messages are misunderstood in their tone. On the other hand email is devoted of emotions and there is a smaller risk of unwarranted disclosure. Using the telephone allows to interpret the tone of voice, however, it is not easy to propose creative ideas and people are more likely to bluff over the phone. 
• If the other party is challenging your authority shift the discussion to general ground rules. And if this calling was posed to make you feel defensive, you will have to demonstrate that such strategies will not be successful.