Negotiation is an art that combines psychology, communication skills, and strategic thinking. Here, I share some tried-and-true tactics that have proven effective in securing lower prices. By leveraging language skills, understanding psychological principles, and fostering a partnership mindset, negotiators can achieve favorable outcomes.
The Power of Language Skills
Building Rapport with Native Language
Language plays a crucial role in negotiations, especially when dealing with international partners. During my tenure at PCA Group, the procurement department often negotiated prices with Chinese suppliers using English, which was a third language for both parties. This approach often led to misunderstandings and inefficiencies.
Being fluent in Chinese, I volunteered to assist in the negotiations. Speaking the suppliers’ native language not only eased communication but also helped build a personal connection. I discussed topics beyond business, such as hometowns and family, creating a friendly atmosphere. This approach resulted in a 15% discount and additional freebies for the company.
Leveraging Common Ground
Discussing non-business topics can humanize the negotiation process. Establishing common ground by talking about shared experiences or interests can build trust and make the other party more receptive to your requests. This tactic is not about manipulation but about fostering genuine connections that can lead to mutual benefits.
Importance of Native Language in International Negotiations
For international negotiations, it is advisable to involve a translator or someone who speaks the same native language as the counterpart. This ensures that nuances and subtleties in communication are accurately conveyed, reducing the risk of misunderstandings, and facilitating smoother negotiations.
Psychological Tactics in Negotiation
The Rejection-Then-Retreat Technique
Psychological principles can significantly influence negotiation outcomes. One effective tactic is the “rejection-then-retreat” technique. This involves making a larger request that you expect to be rejected. Once the other party declines, you follow up with a smaller request, which is what you actually wanted.
For example, if you initially ask for a 30% discount knowing it’s unlikely to be granted, the supplier might refuse. However, when you then ask for a 15% discount, it appears more reasonable in comparison, increasing the likelihood of acceptance. This technique works because people tend to feel obligated to agree to a smaller request after rejecting a larger one, perceiving it as a compromise.
Adopting the Partnership Mindset
Emphasizing Mutual Benefits
According to the Harvard Principles of Negotiation, viewing the other party as a partner rather than an adversary can lead to more productive negotiations. This perspective encourages both parties to seek solutions that provide mutual benefits rather than viewing the negotiation as a zero-sum game.
Collaborative Problem Solving
Engaging in collaborative problem-solving can help identify solutions that satisfy both parties’ interests. By openly discussing each party’s needs and constraints, negotiators can find creative solutions that might not be apparent in a more adversarial setting. This approach fosters a sense of partnership and can lead to more sustainable agreements.
Conclusion
Effective negotiation requires a combination of language skills, psychological insights, and a collaborative mindset. By building rapport through native language, utilizing psychological tactics like the rejection-then-retreat technique, and adopting a partnership approach, negotiators can achieve better outcomes. These strategies not only help secure lower prices but also strengthen business relationships, paving the way for future cooperation and success. For international negotiations, involving a translator or a native speaker can further enhance communication and effectiveness, ensuring that both parties fully understand each other’s needs and constraints.