How To Resolve A Deadlock In A Principled Negotiation

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How to make a deadlock work for you in a negotiation. Deadlocks are a part of negotiating just like speeding tickets are a part of driving. We don't like them, but just like all of the other negotiation styles and negotiating techniques that we have to deal with, they show up every so often and we just have to deal with them. The good news about deadlocks is that they are actually a valuable tool that negotiators can use to move a negotiation towards close and even get a better deal. Do I have your attention now?

Why Deadlocks Are Valuable Tools

As a negotiator, the more tools that you have going into a negotiation, the better you can expect your outcome to be. That's why a deadlock should be viewed as what it really is - just another negotiating tool.The reason that a deadlock can be so useful to you is what it can make happen. When a deadlock is looming in a negotiation, it can cause the other side of the table to display their position and at the same time freeze the negotiation. If they are really willing to allow the deadlock to happen and walk away from the negotiations, then their current position is a "hard" position.

If, on the other hand, they are operating under some constraints (like time) and not reaching a deal in the negotiation is not an option for them, then when they are facing the possibility of a deadlock occurring, they may be willing to give you compromises that they were not willing to give earlier in the negotiations.

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How To Cause A Deadlock To Occur

Just as a deadlock is an important negotiating tool, how you cause a deadlock to occur is just as important. What you need to keep in mind is that the deadlock is not really the end of the negotiations. Rather it is just a stopping point. Your goal is to make sure that you'll be able to restart the negotiations later on.

Whenever the negotiations reach a deadlock, put on your pleasant face. Inform the other side that you're not going to be able to do what they are asking for. By doing this, you are leaving the door open to continue the negotiations later on.

Make sure that you never burn your bridges when you are dealing with a deadlock. Don't tell the other side that since you've reached a deadlock, you'd never be willing to do a deal with them ever again. Instead, tell them to give you a call if anything changes. This will make it easy for both of you to restart the discussions.

What All Of This Means For You

All too often, negotiators fear a deadlock happening in their principled negotiation. In many cases, this is viewed as a failure on the part of the negotiator. It turns out that this is not the case. Deadlocks are just another negotiating tool that we have available to us.
 

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As negotiators we need to learn how to use deadlocks to get what we want out of our next negotiation. When used properly, a deadlock can force the other side of the table to display their position and freeze the negotiations.

In order to be able to walk away from your next negotiation with the deal that you want, you need to learn how to use deadlocks to your advantage. Take the time to study what we've talked about and you'll go into your next negotiation you can use to get the best deal possible.Your strategy for implementing a deadlock must always be to remain pleasant and keep the door open so that we can break the deadlock when we need to.

Better And Basic Negotiation Skills Needed In Business

You know everything is negotiable as long as people have the charm and persuasion to make things happen their way. In sines, there is a pressure to get the most out of relationships and get the most value possible out of deals. Understanding the art of negotiation will increase the chance of a favorable outcome for the company.

Being prepared is the most important part of negotiating well. Going in without a plan and thinking it will be like the movies where characters simply wing it will only backfire. It is important to know the audience, what they want, and what questions they could ask. Understand what is driving the party the company is negotiating against where their priorities lie.

Having a response custom tailored for the audience is very helpful in negotiation. Like the previous point, figure out what type of people the company is dealing with and speak in a language the recognize. This is how to push their buttons. There are four kind of basic people to deal with when negotiating.

First is the formal, precise individual who is analytical and needs mass data before a decision can be made. Second is the purposeful, demanding person who is more competitive and intuitive. Third are the caring, relaxed, and patient people who do not rush things. Fourth are the persuasive people who are warm, expressive, and sociable.

Adapting the approach is easier when the businessman understands the different categories of people. The first person needs lots of information. The second just want a summary. The third and fourth types need stories or diagrams. The person negotiating needs to understand themselves as well so they do not butt heads with people of their own kind. 

Believe it or not, listening is an important negotiation factor. Conduct an initial face-to-face meeting before going into specifics. At this meeting, ask the other party what they want out of the negotiation. The more the negotiator says, the more they will give away. This gives the other negotiating party leverage.

Confidence and being mentally prepared before initial meetings is key. 55% of how people communicate is through body language. If the negotiator feels subordinate, the other party will pick up on it and use it against them in negotiation.

Understand that everyone negotiating needs each other. Know the value of the offer and how it helps the other party. This will give enough confidence to clear the head and be in control, taking the lead in questioning.

Avoid being a salesperson. Discussion is key to negotiation as it is how parties reach a mutually agreeable outcome. Instead of saying how much the company can do for the other party, discuss what the company does and offers and ask how it can help the party. Identifying things that are low cost to the company is important to have prepared in case of a trade-off.

Do not be afraid to take a break during negotiations. This time is often needed to collect thoughts and get the negotiator's head back in the game. This time is also used to reconsider the offers on the table. The only time this is not okay is if the negotiator is on an absolute fixed deadline.

Lastly, it is good to understand the company's position and the negotiating party's position as well. Know what the company can get away with (usually the opening bid), what the company expects to get based on market knowledge, and what the deal breakers are. If the relationship with the other party continues after the negotiation, everyone needs to win.

Negotiation Strategies For Buyers and Sellers

As a buyer can employ certain tactics to strengthen her negotiation position and results, a seller can do certain things to benefit his position and results. It is learned negotiation skills that give a seller advantage and the consistent application of them will pay off over time.

In a previous article, I noted how the buyer in a negotiation usually has the upper hand, because there are more things a buyer can do to successfully conclude a deal. The reason for this is fairly obvious: a seller has a product or service they need to sell to make money, and in almost every market on the planet, there is substantial competition for that product or service. Buyers can always go elsewhere and try to get a better deal if they don't like the one they are engaged in. It's what makes selling anything a tough, tough job.

But, there are things a seller can do to help his position. Here we will discuss a few.

1. Make it clear you have the buyer's best interest at heart.

This means be sincere and prove it. Using over-baked, cliche ridden lines about how much the you care for the buyer and will suffer a loss just to make her a great deal - does not cut it. Buyers see through this and it has the reverse affect of what most cheesy sellers are hoping for when they use this method. Buyers want to know the seller is there for something more than simply making money. Buyer's understand why the seller is selling (to make money), so good sellers reveal to buyers there is more to it than just that. Communicating to the buyer that you love what you do, and giving them specific reasons why, will go a long way toward lessening the buyer's concern that she will only be sold the most expensive product at the highest margin.

Make it personal. Tell the buyer you sincerely hope she will be coming back to see you on her next purchase because you hope to establish a strong, ongoing relationship. Few people are so hard nosed they will not react positively to a sincere offer of friendship. As a seller, you can make use of the natural human tendency to want more friendships. And if a buyer sees you as a friend instead of a huckster, she will benefit you with a sale and more to come.

2. Take a "Low Key" approach.

A low key approach is self-explanatory. It means "not high key". A high key approach is talking a mile a minute, asking insincere questions, laughing inappropriately and too often, showing the buyer twice as much product as she needs to see and telling her twice as much information as she needs to know until she buys something... just to get rid of you. Interestingly, most people who go into sales naturally take this approach with buyers. And it usually does not work.

A low key approach is vital for a seller seeking to use negotiation skills to ensure a profitable outcome. This seller reminds the buyer he is there to assist her - not push her. He suggests products or services that may meet her needs and if they don't, he will gladly refer her elsewhere. He reminds her he wants her to be happy, but not so that he makes a fat commission or profit, but so that she considers him a consultant, someone to whom she will come back to for counsel, or advice.

3. Apply the lever of time.

A buyer can negotiate like a bulldog. Usually a seller cannot. Again, this is because a buyer can usually walk if they are unhappy, whereas a seller must find another buyer if there is no sale. However, a seller does have the issue of time to his advantage.

Everyone has a limited amount of time. Nothing could be more obvious. Well, for a buyer, this has a cost, because if a buyer cannot make a deal work, she must go on to the next seller, and try again. And if that seller cannot make a deal or does not have what she needs, she must move on again. And again.

For most buyers, this a nightmare. Unless they are simply having fun with the buying process (and some people actually do), there is a strong likelihood the buyer simply wants to find the right product or service at the right price and get it done. Negotiating can be tiring and take away from other productive uses of one's time.

A clever seller keeps this truth in mind at all times. He will engage with the buyer in every way possible, giving her total focus and attention and immersing her in the process of buying as much as he possibly can, for as long as he can, so that she will not be inclined to end the process and go somewhere else and start the whole thing over. As a seller, you remind the buyer how much she has learned about your product or service, how much you have devoted yourself to working through the deal, and how much more you are willing to do to see a beneficial result for both parties.

Now some sellers push this concept by claiming deadlines, such as a sale ending in 10 hours, or competition, such as another buyer who is waiting to make an offer on the same product, but often these are disingenuous methods of pushing buyers to buy before considering further. These methods may work, but if they are false, and a buyer learns of it, you may lose a customer for life. It is better to be straightforward, and tell the buyer about something imminent if it is true, but never use it to push buyer to a decision.

Just as a buyer can make productive use of negotiating skills, a seller can employ methods to give him a greater likelihood of success. Negotiating is a crucial element of buying and selling almost anything, and those who know the principles are most often the ones who realize the profitable deals.