Buyers will help Sellers find what they are looking for

Buyers will help Sellers find what they are looking for
Image Credit:
Michael Clore

When we have something to sell, we end up working with a buyer sitting on the other side of the table from us. That person has one job in the world – use negotiation styles and negotiating techniques to get us to lower our price and throw in as many concessions as they can possibly get us to make. Our job, of course, is to resist what they are asking us to do. Buyers have tactics to get what they want and they’ll use them on us. We need to be aware of their tactics when they are used against us.

Two Ways Buyers Try To Get A Lower Price

When a buyer wants to get you to lower the price that you are trying to charge them, often one of the first things that they will try to do is to use a bogey on you. This is a simple tactic where the buyer will complement you, your product, and perhaps even your company. They’ll tell you that everything is wonderful and that they are in love with your product. However, it turns out that they only have a limited amount of money (less than you are asking for) and so they ask you if you could lower your price.

Another tactic that a buyer may use is called the seller bogey. This is when the buyer calls you up and says that they are not ready to start negotiating with you yet, but they need a planning price so that they can talk with their management and make sure that they have the budget that they need. The price that you give to them doesn’t have to be accurate, it just has to be in the ball park. Later, when you sit down to negotiate with them and your actual price is higher, they’ll come back to you and say that their budget is based on the lower planning price that you gave them and that that is the best that they can do.

Both of these methods are designed to butter you up. The buyer complements you and your product. You start to feel good about yourself and you start to believe that you are going to be able to close this deal. However, then they hit you with the one thing that is standing between you and closing the deal – your price. Their reason for doing this is that they believe that you will now scramble to lower your price just to be able to save the deal.

The Krunch Tactic

The final tactic that a buyer likes to use is called the Krunch tactic. This very effective tactic occurs when you make a proposal to the other side and they come back to you and say “you’ve got to do better than that”. In some cases they may tell you “you’re close”. What happens in this situation is that the ball is now in your court and the buyer expects you to lower your price.

There is one more way that a buyer can use the Krunch tactic. This is called the super Krunch tactic. This occurs, of course, after you’ve made a pricing proposal to the other side, they’ve taken a look at it and they come back to you and say “you’ve got to do significantly better than that”. The use of that one word, significantly, generally gets the buyer a much lower price.

The Krunch tactic is amazingly successful. One of the reasons that it seems to work so well is because more often than not we’re not all that confident in our pricing. We generally tend to think that our price is too high and when a buyer comes back and tells us the same thing it just confirms what we were already thinking.

What All Of This Means For You

As someone who is entering into a principled negotiation in order to sell something to someone else, we are up against formidable odds. The other side’s job is to get us to lower the price that we are planning on charging them and they have a vast array of tactics that they can use to make this happen. It is our job to be able to detect when these tactics are being used against us.

The buyer’s tactics often start out with using the bogey tactic. When this is being used, the buyer will complement us and our product but then they’ll tell us that they just don’t have enough money to pay us what we want to be paid. They’ll ask use to lower our price. A variation on this tactic is called the seller bogey. This is when the buyer gets us to commit to a “planning price” before the negotiations start and then attempts to hold us to that price when the negotiations are under way. Finally, there is the Krunch tactic where the seller simply informs us that “you need to do better” in order to get us to lower our price.

All of these tactics have been used by buyers for a very long time. The reason that they use them is because they work and work very well. As the person doing the selling in a negotiation it is our responsibility to detect when these tactics are being used against us. If we know what the other side is up to, then we’ll be better prepared to deal with them.

– Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: When the other side says that they don’t have enough money to pay for our product or service, what should our response to them be?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

When we are negotiating with someone, we need to understand that in addition to a number of different negotiation styles and negotiating techniques they are going to be using tactics to get what they want out of the negotiations. As a negotiator, you need to be able to recognize when they are using tactics, you need to be able to identify the tactic that they are using, and then you need to know what countermeasures you can use to defeat their tactics. Wow – sure sounds like you’ve got your work cut out for you!

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During a negotiation, what you hear may not be correct

During a negotiation, what you hear may not be correct
Image Credit:
knowingPark

How good are your ears? Do you feel that they are working the way that they should be? Do you think that you can hear what other people are saying? Can you hear this during a negotiation? I’d be willing to bet that most of us think that our ears work just fine while we are engaged in a negotiation no matter what negotiation styles and negotiating techniques are being used. However, the fact is that although they may be working just fine, it turns out that we may be hearing only the things that we want to hear.

What You Want To Hear During A Negotiation

There are a number of different reasons for why we hear what we hear during a negotiation. The primary one is because it is what the other side of the table is telling us. What they are saying is that there is something wrong with what we have proposed to them. They don’t just say it once, they will tell us this over and over again.

The good news is that we may realize that there is nothing wrong with what we have proposed. Our price is fair, our delivery date is the best out there, and our product or service is top notch. However, when we start to encounter people who tell us over and over again that there is something wrong with what we are proposing to them, unfortunately deep down inside of us there is something that will start to believe them.

Just to take this one step further, it can get worse. After we’ve been told enough times that there is something wrong with what we are proposing, something very mysterious will start to happen. We will start to find faults with what we are proposing. No offer and no product is perfect. We’ll start to take a look at our proposal and realize where our shortcomings are. What once looked like a fine offering now starts to look like it has a bunch of holes and gaps in it just because the other side said bad things about it.

How To Hear What’s Really Being Said

Clearly we have a problem here. It turns out that we can find what we are looking for. The mistake that we are making is hearing and starting to believe what the other side is telling us about our proposal. Things can get worse. We can start to specifically listen for it. And start to look for it. We’ll gather it as ammunition and go back and complain to our team.

What we are forgetting in this situation is that it is the job of the other side to complain about our proposal no matter if they think there is a problem or not. The people in the other side’s organization will never forgive him or her if they didn’t complain and try to get a better deal. They will forgive them if they don’t get a better deal, but not if they don’t try by complaining to you.

The way that you can deal with all of this is to take the time to tune in to your potential sources of power. Shut out all of the negative things that the other side is saying and focus instead on clues that the other side is giving off that will boost your power. You want to hear about things that limit the other side’s ability to use the competition, time pressures they may be under, and listen for people in the other organization who like your offering. Hear what makes you strong and you’ll be able to get the deal that you came looking for.

What All Of This Means For You

As negotiators we live in a world that is filled with negatives. When we enter into a principled negotiation, we start to hear negative things about our proposal from the other side. We need to be very careful about what our ears are telling us because all they are going to be hearing are negative things.

It is the job of the other side of the table to hit us with a stream of negative comments and thoughts about our proposal. Their management expects them to be doing this. Although we know that we’ve make a good proposal, if we hear enough negative things we may start to believe them over time. Things can get worse – we may start to look for faults with our proposal over time. What we need to do is to tune all of the negative comments out and instead focus on what the other side is saying that can be a source of power for us.

We always have to remember that when we are negotiating we are in control. Yes, the other side may be throwing a lot of negative comments our way about our proposal, but we need to keep in mind that that is their job. We need to be selective in what we choose to hear and only pick out the things that can help our position. The next time you negotiate, use your ears carefully!

– Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: When you are hearing a lot of negative things from the other side, what can you do to clear your mind so that you can hear what you want to hear?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

When we have something to sell, we end up working with a buyer sitting on the other side of the table from us. That person has one job in the world – use negotiation styles and negotiating techniques to get us to lower our price and throw in as many concessions as they can possibly get us to make. Our job, of course, is to resist what they are asking us to do. Buyers have tactics to get what they want and they’ll use them on us. We need to be aware of their tactics when they are used against us.

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