Negotiation Strategies, Negotiating Tips August 27, 2008

Make Them an Offer They Must Refuse

The KARRASS Effective Negotiating^® Seminar teaches you how to use a 'Bogey' as a discovery tactic to gain more information. The more you know about what is on the other party's 'sheet,' the better the opportunity for you to find ways to create a Both-Win agreement.

Consider making them an offer they must refuse.

This is an interesting negotiating technique. There are times when you should make an offer the other side just has to refuse. Why should anyone give the other party such an offer?

Here's what this negotiating technique can accomplish.

Proposals like this help set the stage for making offers later that look good by comparison (i.e. it helps establish aspiration levels). Making an offer like this gives you time to explore various alternatives that could be acceptable. Using this technique can stall the negotiation; force talks to break down; or help postpone a decision until a time that is more favorable to you. All of these events provide you more time that can be used to craft a better agreement for both you and the other side.

One of the best reasons for making an offer the other side can't accept is to help you zero in on what is acceptable. The magic of such an offer is that it opens up a flow of conversation. When people believe that no agreement is likely, they talk more candidly with one another. It is then that real motivation and goals are revealed. After gaining this additional information, there is no reason you cannot then follow-up with a more knowledgeable offer that is acceptable.

There is some risk associated with this negotiating technique. But, you may find this technique can open up an avenue to a value enhanced agreement.

Caution is necessary -- particularly if you are on the 'sales side' of the negotiation. Make sure you leave yourself a way to re-enter negotiations. You want to use this negotiating technique to stop the negotiation, to allow you to gain more information, but you do not want to eliminate your proposal from consideration.