Bargaining for Advantage

To be good, you must learn to be yourself at the bargaining table.

To be good, you must learn to be yourself at the bargaining table. Know your style. Negotiation styles range from competitive to cooperative, and understanding your natural inclinations is crucial. Competitive negotiators excel at seeing power dynamics and leverage quickly, while cooperative types are skilled at being team players and helping others. Neither style is inherently superior; the key is to recognize your strengths and weaknesses. Adapt to the situation. Different negotiation scenarios call for different approaches: Tacit Coordination: Low conflict, limited future relationship (e.g., two drivers at an intersection) Transactions: High stakes, low relationship importance (e.g., buying a used car) Relationships: Low stakes, high relationship importance (e.g., family negotiations) Balanced Concerns: High stakes, high relationship importance (e.g., business partnerships) Identify which situation you're in and adjust your strategy accordingly. For example, in a Transaction, be more assertive about your goals, while in a Relationship scenario, focus on maintaining harmony and finding mutually beneficial solutions.

What you aim for in negotiations often determines what you get. Aim high. Research consistently shows that negotiators who set higher goals achieve better outcomes. This is because your goals act as psychological anchors, influencing both your behavior and the other party's perceptions. When you expect more, you're more likely to: Ask for more Make fewer concessions Project confidence Be specific. Vague goals like "get a good deal" are ineffective. Instead, set clear, measurable objectives. For example: "Secure a 10% increase in salary" "Reduce delivery time by 5 business days" "Obtain exclusive distribution rights for the next 3 years" Write down your goals and share them with someone you trust. This act of commitment increases your likelihood of following through and achieving your targets.

Negotiations are fertile ground for observing the consistency principle at work. Leverage consistency. People have a deep psychological need to appear consistent in their words and actions. By invoking widely accepted standards or norms, you can create powerful leverage in negotiations. This "normative leverage" is especially effective when using standards the other party has previously acknowledged or used themselves. Examples of authoritative standards: Industry benchmarks Legal precedents Expert opinions Company policies Historical data Frame your proposals. When presenting your position, frame it within the context of these authoritative standards. For instance, if negotiating a salary, reference industry salary surveys or your company's stated commitment to fair compensation. This makes it harder for the other party to reject your proposal without appearing inconsistent or unreasonable. Be prepared to counter the other side's standards as well. Research thoroughly and anticipate which norms they might invoke to support their position.