Negotiating with a Meeting Facility – Part III

This is the last part of response requested by one of my readers. He organizes meeting places for his clients.

I describe advanced negotiation skills and their applications in detail in my book, The World is a Bazaar – Life is a Negotiation.

Negotiating Gimmicks

I. These occur at the start of a negotiation.

a. The Wince

In several cultures, this is a standard negotiating tactic. If you are a buyer in an Indian or Egyptian Bazaar, it could help bring the other side closer to the trading range. Most religious planners use it as a habit. They express disappointment and shock at what the other party is presenting.

1. Three F (Feel, Felt, Found)

Acknowledge the other person’s feelings without making any concession. It is a constructive way of disagreeing without being offensive.  “I understand your position. I encourage you to find out more about us. I am sure you will like to do business with us.”

2. The First Offer

In the hotel industry, the general rule is not to accept the first offer. If the proposal is right, give a well-thought-out response. Most likely, you will make the answer conditional getting one or more of the items on your “wish-list.”

3. The Squeeze

The purpose is to move the price or issue more in your favor. When someone names a price, question it by asking, “What is the basis for that price?” If you are on the other side, you could ask, “What will it take to get your business?”

II. These typically occur during the middle of the dialog.

1. Negotiation is trading.

Whenever you are giving a concession, get something back in return. Again, a “Wish List” prepared in advance, will be instrumental. If you give away something without getting something back, you are encouraging a wolf-like behavior. You are setting a precedent. The other side will come back for more concessions. Let the other team know that they will need to give up something for everything they get. This will keep the negotiation balanced.

2. Making the “gap” look smaller

Sometimes there appears to be a stalemate on an issue. If you want to do business with the other party, set that item aside to come back to it later or last. Meanwhile, continue to identify issues where you do have an agreement. This way you make the “gap” look smaller, and both sides have made time and emotional investment. Both are motivated to make the deal happen.

III. Then there are actions more suited near the tail end.

a. BATNA

At the last stage of negotiation, most people think that they have looked at all the alternatives to this deal. This may not always be an accurate assumption. Ask yourself, “What is my best alternative to the negotiated Agreement?”

b. The Walk-Away

The most substantial negotiating position is always being able to walk away. Therefore, it is essential to understand options available to you.

These are general guidelines for negotiating with hotels in the U.S. Most two negotiations are not precisely the same. So, use your judgment in applying these principles.

“Negotiate less out of habit and more out of Intent.”

Satish Mehta