Master Negotiation Techniques by Ravinder Tulsiani

7/28/2019 Master Negotiation Techniques by Ravinder Tulsiani

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MasterNegotiation Techniquesby Ravinder Tulsiani


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Master Negotiation Techniques

RAVINDER TULSIANI, FCSI, BA-Law Corporate Trainer TransformationalLeader

Educator, business developer, corporate leader, author, & entrepreneur I oerdiverse talents across a wide spectrum o businesses & industries. My reputation orexcellence reects my expertise as a strategic planner who creates cultural transorma-tion in business with a ocus on educating & motivating the workorce to achievecore business objectives.

In my proessional career which spans banking, nance, real estate, mortgages, in-surance, & investments I took organizational development to new heights. I alwayslooked or ways to bring all employees, agents, branch managers, & executives up tospeed on changing market conditions. In each situation, I built a reputation or driv-ing cultural transormation or pinnacle growth by:

Providing solutions that balanced company concerns about training time withproductivity impact.

Creating online programs, & multiple modules & methodologies that allowedor exibility & employee choice.

Oering unique one-to-one & group sessions tting corporate requirements.

Unleash the E.D.G.E. reects the value I oer. Each element targets exceptionalcustomer service or bottom-line growth & brand enhancements.

Educate educate personnel on their current job (give them the knowledge,tools & resources to be eective)

Develop develop them or their next role

Guide provide coaching, guidance, & correction along the way

Empower set a good example & then get out o their way

I have travelled worldwide & am amiliar with many cultures. I know how to useinternational opportunities to maximize results aligned with the vision. I also ensureknowledge transer & application that allows organizations to switly reach globaltargets.

An author & highly eective online networker, I have written e-books that include:

Super actics o ime Management Experts

Develop Your Financial IQ

How to be a Public Speaking Superstar.

I welcome your emails and questions at [email protected]


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MASTER NEGOTIATION TECHNIQUES | iii

Table of Contents

introducton 1

3 Fundamental Rules o Creating Win-Win . . . . . . . . . . . . . . . . . . . 1

3 Stages o Negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

5 Things That Make You Better Negotiator . . . . . . . . . . . . . . . . . . . 2

Common Tactics in Negotiation . . . . . . . . . . . . . . . . . . . . . . . . 2

Nibling Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Hot Potato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Higher Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Set-Aside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Third Party Close / Arbitrator . . . . . . . . . . . . . . . . . . . . . . . 3

Good Guy / Bad Guy . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Never Say Yes to the First Ofer . . . . . . . . . . . . . . . . . . . . . . 3

Feel, Felt, Found Formula . . . . . . . . . . . . . . . . . . . . . . . . 3

Columbo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Diminished Value Principal . . . . . . . . . . . . . . . . . . . . . . . . 4

Walk-Away . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Flinching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Trade Of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Vice Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

The Art o Printed Word . . . . . . . . . . . . . . . . . . . . . . . . . 5

Withdrawn Concession . . . . . . . . . . . . . . . . . . . . . . . . . 5

Negotiate in Progressively Smaller Ranges . . . . . . . . . . . . . . . . . 5

Positioning or Easy Acceptance . . . . . . . . . . . . . . . . . . . . . 5

Always Write the Contract . . . . . . . . . . . . . . . . . . . . . . . . 5


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v | Table of Contents

Breaking it Down to the Ridiculous . . . . . . . . . . . . . . . . . . . . 6

Decoy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Puppy Dog Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Reluctant Buyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Never Name the Price First . . . . . . . . . . . . . . . . . . . . . . . . 7

Ask or More . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Split the Diference . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Time Constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Never Gloat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Table of Contents (Continued)


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| 1

1 Get the Upper Hand in AnyNegotiationIntroductionWe have all heard o the old saying, you dont ask,you dont get. But, the realty is that youve gotta domore than just ask. Getting what you want out othe negotiation is an art that needs to be mastered.rue negotiation results in both parties creating awin-win situation both parties get what they want.

Beore we get into the techniques, i you dontalready know this, youre negotiating all the time.With your spouse, children, boss, co-workersyoure negotiating at some level.

Remember, anything you currently want is owned orcontrolled by someone else, the only way to get whatyou want is to give them what they want.

Beore we get into specic techniques, here are aew undamental things you need to know.

1) Tere are some predictable responses to negotia-tion techniques. Example, you oer low-ball oerexpecting to negotiate and they take it yourresponse I could have done better. Also, theressomething wrong.

Part o negotiation is learning that there are predict-able responses.

2) o negotiate eectively, you must believe in win-win scenerios. Rather than, trying to outsmart theother, you need to get what you want while givingthem what they want.

3 Fundamental Rules of Creat-ing Win-Win1. I you narrow down to one issue in negotiation,

then somebody has to win and somebody has tolose. But, theres usually more than one issue.

2. Understanding that People dont want the same

thing. People see things rom a dierent per-spective (example 6/9). Dont all into the trapthat price is the only issue.

3. I we think they want what we want. Because ithey get what they want, we cant get it. So, weneed to understand that people want dierentthings.

Note: Negotiation is not the same as price cutting.In act, i you try to sell at ull price needs to be abetter negotiator. You dont need a lot o negotiatingtechniques to cut your price.

3 Stages of Negotiation1. Establish criteria. Find out exactly what they

expect you to do. Find out what they want. ellthem what we are prepared to do. Tis estab-lishes how ar each party is.

2. Get inormation about the other side. Dontassume.

3. Reach or compromise thats acceptable to bothsides


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2 | Get the Upper Hand in Any Negotiation

5 Things That Make You BetterNegotiator1. Negotiating is always a 2 way aair. Under-

stand, both sides have pressures. Good negotia-tor mentally compensates or the tendency thatwe have a weaker position.

2. Desire to acquire the skills o negotiating. Un-

derstand, everyone negotiates, understand howeective they can be.

3. Te understanding o how these principalswork and the gambits

4. You dont have to wait beore you use theseskills, learn to practice in everyday lie.

5. Desire to create win-win solutions.

Common Tactics inNegotiationEven i you dont use these techniques, you still need

to know them so that you know when they are be-ing used against you.

Nibling TechniqueYou can get a little bit more even ater everythinghas been agreed to. Ex. Car dealer add ons. Rea-

son, during negotiation, your guard is up, once thedecision is made, their guard goes down.

I you ask or it up-ront, it becomes a trade-osituation (a bargaining chip), the nibbling techniquesuggests that you dont necessarily ask or everythingup-ront, you wait or that moment o agreement inthe negotiation and then nible a little extra.

Hot PotatoWhen someone wants to give you their problem.For example, a client comes to you and says theyonly have $4,000 or downpayment and want topurchase a home, thats a very low number, it wouldbe very difcult to nd a property or them.

Here is a way to address it:

est it or validity right away thats ne, we canwork with that (always agree), but let me ask youthis i I nd you the property in exactly the rightproperty, in exactly the right neighborhood, price &terms property, your amily will love it, but theyreasking or $10,000, is there any point in showing itto you or should I just show it my other buyers.

Nine out o ten times they will say they would still

like to see it and can scrape the little extra needed ithey love it or borrow it rom a amily member etcImmediately, you know that the problem they tossedyou is not a deal buster. Its not a valid problem.

Higher AuthorityI you thought that having the ull authority tonegotiate a deal gives you the upper hand, yourewrong. Te exact opposite is true. You put yourselin a weaker position by doing that. Always have ahigher authority that you need to check with beoreyou have to change your proposal or make a deci-sion. Negotiate the deal and then tell them that youneed to run it by your partner to get the nal ok.Te next day, you can go back to them and say thatthe partner did not approve, he thought you weregiving away too much and would only do the deali they would be shave the another $5,000 o theprice.


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MASTER NEGOTIATION TECHNIQUES | 3

Set-AsideFirst, there is a dierence between a deadlock andimpasse. Te simplest way to address an impassein any negotiation is the set-aside technique. Yousimply state that you understand how importantthe point is to them, but lets just set that aside andcover o all the other issues rst and well comeback to it later.

Resolve the little issues rst to establish a momen-tum. Inexperienced negotiators think they needto resolve the big issues rst. Te realty is that thebig impasse areas become very exible once youveound common ground and momentum on thesmaller issues.

Third Pary Close / ArbitratorI you do reach a deadlock in a negotiation, the bestway to deal with it is to bring in a third party who isperceived as reasonably neutral in the negotiation bythe other party.

imeshare sales people use this technique very well.I they are unable to close, they bring in anotherperson (their manager). Te client then has to ex-plain all over again why they are unable to purchasethe timeshare. By explaining it again, the manager isable to start the discussions again and hopeully nda common ground to discuss urther.

Good Guy / Bad GuyIm sure youve seen a V or movie where a suspectis brought in or interrogation and the rst detec-tive to come in is rough and intimidating, he is thenmysteriously called away, and the second nicer de-tective comes in. Te nicer detective then attempts

to convince the suspect that hes on your side and

can help the suspect i the suspect will talk. He thenstarts with a minor point and then eventually asksthe real questions. Remember, little decisions lead tobig ones. Tats why car sales people ask you i youwere to buy this car, what colour would you want,manual or automatic etc

Ive used this technique when negotiating with abuilder, my partner and I were sitting at the board-room in the builders ofce and my partner laid

out a whole list o demands and when the buildersaid the pricing was too high, my partner basicallytold him thats what I need, he stood up and shookhands with the builder and walked out o the room.I then tidied my things and as I slowly walked to-wards the door, I said to him, look, I think this dealis do-able, i you could just be a little more exiblein the pricing, I could possibly get my partner to go

along with it and yes, we closed the deal at veryavorable terms.

Never Say Yes to the First OferAnytime you say yes to the rst oer the other party

automatically thinks they could have done better inthe negotiation. Te second thought is that there issomething wrong. Te third reaction is to nibble toget a little more.

So never jump at the rst oer, it doesnt matterhow good the rst oer is. It will allow the otherparty to eel like they won in the negotiation.

Feel, Felt, Found FormulaDont argue with them, always agree with them.Arguing with them orces them to deend theirposition. Agreeing with them diuses arguments.


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a good negotiator makes the other party eel theyhave won in the negotiation.

Positioning or Easy AcceptanceVery important to set them up or conceding to youwithout making them eel like they lost.

With this technique you say to the other party, look,I know youre not getting the best deal, but with mypartners I cant move any more on this, do me avor,give into this one and Ill make it up to you on alater deal once my partners have done some businesswith you.

Tis way, they dont eel that they lost in the nego-tiation, but rather they are doing you a avor.

You can also combine this technique with a nominalconcession. I can only go another $100, but look

Always Write the ContractWhen youre done with the basic negotiation

someone has to write the contract, ideally it shouldbe you.

Te person who gets to put it in writing has asignicant advantage because all the little details notdiscussed can be inserted in your avor and its nowup to the other party to negotiate them out.

Send the other party a completed proposal with the

assumption that the other party will accept it exactlythe way its written. So mail the contract signedwith the deposit (i applicable). Assumption o closeplaces pressure on the other party to close quickly.Tey can either take the easy route by simply sign-ing and accepting the payment or they can open upnegotiation and stand a chance o the whole thingalling apart.

The Art o Printed WordTe written word is believable. People believe whatthey see in writing that they wont believe whenthey just hear about it.

Any chance you get put it in writing.

Withdrawn ConcessionIt is very eective or bringing the negotiation toclose. You should use this technique when you eelthe people are arm wrestling with you, you knowthey want to do the deal, but theyre just negotiatingor a better price or terms.

I you have ever been involved in a negotiation and

the salesperson says to you that piece o urnitureis $800 and you negotiate down to $750; you thentry and get him to approve it or $700, he says heneeds to check with the manager, he comes backand says, look Im very embarrassed about this butI know I said the price o the couch was $750, but Icant sell it to you or that price. Tis couch was or$800 last week, but the sale ended and it s now or

$850. I cant even sell it to you or the $750, theresnot enough margin. You then orget about trying tonegotiate or $700 and say to the person, you said$750, I want you to at least honour that. I some-thing similar has happened to you, youve just beensubjected to the withdrawn concession technique.

Negotiate in Progressively Smaller

RangesOer a reasonable concession up-ront and makesure i you have to make urther concessions, makethem smaller and smaller to convince them thatthey have squeezed you to your max. Remember,


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6 | Get the Upper Hand in Any Negotiation

Breaking it Down to the RidiculousTere are dierent ways to describe costs. Forexample, insurance companies do this eectively,the cost o lie insurance can be described as $360per year, or $30 per month or just $1 per day now,isnt a cost o cup o coee a day worth your amilyspeace o mind? Tey emphasize a dollar a day whichis much smaller than i they were to say $360 peryear.

For example in a real estate contract, when someoneis negotiating over $5,000 o the price, you break-down the additional monthly payments amortizedover 25 years, that represents only a ew dollars extraper month are they going to let this deal go over$10 extra per month?

DecoyWhen you try to negotiate over something you dontcare about to take the ocus o the things you docare about. For example, the house youre looking athas a swimming pool, you like it, but tell the seller

that you were hoping to buy a property without apool because o the cost to maintain etc becauseo the pool this property is less desirable to you asa buyer you then use that as a bargaining chip toreduce the price o the property.

Puppy Dog CloseTis technique comes rom the pet store, where theparents come in with the child and the store ownersees resistance; so he tells the parent, why dont youtake the puppy home or the weekend and see i thechild likes it, i not, just bring it back.

Tey rarely ever come back. Te child alls in love

with it and decides to keep it.

Tis technique involves getting the other partyemotionally involved in the decision. In real estate,this is used very requently; a couple see the house,just beore theyre about to leave the house, therealtor pulls out a camera and takes a ew pictureso the client in the house and outside. He then givesthem the pictures. Tey can now see themselvesin that house starting a new amily. Tey can nowshow this picture to their amily and riends andsays this is the house they just put an oer on. Itsvery hard to back out o the oer ater you just toldeverybody around you about it.

Reluctant BuyerI you tell the other party up-ront that you need to

move out o your house by the end o the month,then dont expect to later negotiate a good deal. Teyalready know youre a motivated buyer.

Always play the reluctant buyer role. I dont thinkIm interested in it at this time, I just close on an


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Never Name the Price FirstYouve already heard about the old saying, he whosays the price rst loses. Well, i both parties havestudied negotiation, no one would name the priceand nothing would get done.

o avoid naming the price rst, resort to the higherauthority technique. Tat is, make me an oer and Iwill take it back to my board o directors / partners.

I you are pressured into naming a price, let themknow that you dont know i your partners would goor it, but you know theyre looking or x amount,anything over, you would need to conrm with yourpartners.

Ask For MoreAlways ask or more than you expect to get. Notonly because you may get them, but also that youhave something to concede in the negotiation pro-cess. Remember, the key is to make the other personin the negotiation eel that they have won.

When youre making an oer, dont go in with yourvery best oer take it or leave it technique. Myadvice is to oer low and imply some exibility.

Split the DiferenceAlways get the other party to split the dierence in

hal, dont do it yoursel.For example, you want to buy an item or $6,000and the seller wants to sell at $10,000. So you indi-cate that youre just $4,000 apart, would they meethal way? I they say ok, you say that I will go backto my partners and let them know youre ok with$8,000 and see i they go or it. Ten come back and

say, they wont go or $8,000, but were just $2,000

apart and i you could get the seller to move halway, I think I can convince them. You now negoti-ated down to $7,000.

Time ConstraintsNever reveal that you have a deadline... you need tosuggest that you have all the time in the world. Re-

member, the person with the most time constraintsis the most motivated. As the deadline approaches,the party becomes a lot more exible.

Tink about it, when do kids ask you or some-thing when youre about to run out the doorwhen do they ask you or help with their homework,always on the last day Kids are instinctively greatnegotiators.

Never GloatAter the negotiation is over, never ever gloat abouthow they gave in too quickly and you were willingto much urther etc this will make them eel they

lost. Te key is to make them eel as i they wonin the negotiation. So, when youre done with thenegotiation congratulate them and let them knowthey did a antastic job in negotiation make themeel good.


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Master Negotiation Techniques by Ravinder Tulsiani

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