4. Movement and concessions Making the First Move

Asking questions and listening effectively are important skills both in selling and negotiating. The first phase of negotiation involves both parties in agreeing the background to the negotiation and .fishing. for the opening demand or offer.

It is often better to present the opening demand or offer in terms of a hypothetical question, as this allows the negotiator to retreat to his initial position if necessary. The opening offer will probably be at or just about the level of the negotiator’s maximum expectation, giving him room to manoeuvre, but not so high that the offer lacks credibility. Do not attempt to .win. at this stage, but hold sufficient back so that you are able to move, if necessary, at a later stage. This is a difficult period in the negotiation process and a professional negotiator will often use silence or other pressure techniques to solicit information from the other party.

Further Movement and Concessions

During negotiations, it can be in the interest of each side to keep asking questions and raising objections. Many excellent negotiators are low reactors who will move very slowly in negotiation. However, given that the opening position of each party differs, then there has to be movement and concessions if a deal is to be struck. Negotiators will tend, at first, to discuss extra demands, trying to get the other side to agree to these without offering anything in return. They will be reluctant to give information or will defer decisions in order to increase the pressure on the other person.

When an offer does come, it will often be on the basis of a quotation based on the minimum quantity at the lowest possible price. In all this, the negotiator is attempting to dominate the interview, pressing for maximum advantage, and trying to force the other person to concede on a major issue.

The skilled negotiator will ask the other side for a complete list of all his, or her requirements, and will not concede on a single issue until he knows the nature of the whole package. He will then begin to trade concessions, starting with the smaller, less important aspects of the package.

Negotiators should avoid making one-sided concessions which will severely weaken his final position and could affect the overall profitability of the deal. When movement comes, it begins slowly, then can be very rapid as both parties sense a deal being on the cards. Movement does tend to be discontinuous with either party moving and the other holding up the agreement at any one time. This leads to short periods of deadlock, which can be brought to an end in different ways.

Some of these are:

• Period of silence. Wait for the other party to speak.

• Agree to a concession. Always trade concessions by saying If I do this, you do that.

• Adjournment to review positions.

• Agree to leave certain issues to one side for later and concentrate on the rest.

• Identify areas of common agreement.

• The use of the relationship with the other side to break the deadlock.

Signals to be aware of that could mean the other side wishes movement to take place could include:

• Trial movement. One side uses words like ‘What would you say if ...?’ or uses hypothetical examples

• Summarises the position to date and asks ‘Where do we go from here?’

• One side calls for adjournment.

• Appeals to the other side’s better nature.

• Asks for more information.

• Uses .crowding. techniques to force movement, e.g. aggressive behaviour, sets deadlines and time limits, threatens use of competition.

The use of concessions is a vital part of building a profitable relationship for both parties in the negotiation. Earlier, we discussed the different .elements, that could constitute the final deal. The use of concessions enables negotiators to build a mutually profitable deal that is not one-sided in the other side’s favour.