The Set-Up: Your Opponent Prefers that You Compromise
Some negotiation opponents have elusive ways to encourage you to compromise. Often, you may infer that they have given you a decision, but their words don’t exactly convey that.
This happens when we hear “statements” but interpret them as “decisions.” Telling your employees that you’d like them to work on Friday differs from saying that they can not take off on Friday.
The Example:
You are negotiating with a new prospect to discover and confirm what is important to them and what their budget is. Three weeks later, you present an offer that you confidently feel should address their concerns.
The prospect says, “‘We appreciate your effort, and things look good. But before we decide, I would appreciate it if you would ‘sharpen your pencil.’”
You focus on their words, “Your offer looks good.” You think that you’re very close to a deal—so close that if you compromise and give them a slight discount, you can seal the deal. Remember that although negotiations may include compromises, compromise is not a necessity.
Stop! Please Don’t Compromise!
Remember that you worked diligently with your prospects to discover what they wanted. You negotiated all the terms required for you to deliver and gave them your offer. In return, it is reasonable for you to expect a decision from your prospect.
“Sharpen your pencil” is not a decision. It is a statement that suggests you may lose the deal unless you reduce the price.
It communicates the prospect’s preference for a lower price. They never said, “I will not buy unless you lower the price.”
How Can You Avoid the Trap?
Lowering the price at this time would be a mistake. Instead, you can take a short pause to show that you listened to the other side’s responses. When you return, thank them for considering your product.
Then, ask the question, “You have shared what is important to you, and we worked together to customize our offer to meet your needs. How acceptable is the offer we have created for you?” This is an open-ended question that requires more than a yes or no.
Now, you are making the prospect think. They must give you their decision or at least explain their concerns.
They know that if they say your proposal is not good enough, they risk losing the deal. Finding an alternative solution would be more work.
If they reject, shift your focus to discover why. Keep negotiating to learn if your deal doesn’t solve their problem as you assumed.
They may prefer your product but need more data to support a decision to buy. Perhaps this particular person has no authority to say yes. Also, they could really want your product under your terms but are bluffing to seek a concession from you.
Moving the conversation towards a decision will move the negotiation forward, even if it leads to a no.
If they accept your offer, say thank you and confirm the next step to implement the sale.
Summary:
After you make an offer, don’t let “statements” from your respected opponent define your next steps or lead you to compromise too hastily. When the other side gives you statements instead of a decision, don’t negotiate against yourself and make unnecessary concessions.
Ask for decisions.
Beforehand, prepare your response so you’ll know what you’ll say if they reject or accept.
