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Tactic #34 - Whatever
Summary: Appearing indifferent to the
outcome of a negotiation.
With this tactic, one
counterpart appears to be uninterested in the outcome of the
negotiation. She simply encourages the other counterpart to follow
through with the terms. Her attitude is clearly, “Whatever . . .”
Example
Company A warns Company B that if a delinquent bill is not paid, the
matter will be turned over to a collection agency. Company B replies,
“We are already being sued by six other companies. Next week we are
planning to file for bankruptcy. We will provide you with the name of
our bankruptcy attorney and you can send the collection paperwork
directly to him. Perhaps that will save you some time.”
A second example is a parent giving a teenager some tough feedback about
a bad report card. The parent says, “If you don’t improve your grades,
you will be grounded indefinitely.” The teenager replies, “Whatever, I
don’t care. I don’t have any friends or anyplace I want to go anyway.”
Counter
In the first example, although Company A’s goal, getting the money,
remains the same, it may be in the company’s best interest to switch
tactics. First, Company A could utilize the tactic of Calling Your
Bluff and ask for the name and address of the bankruptcy attorney.
If there really is no bankruptcy attorney, Company A may want to stay on
the collection course. If it seems the debt is eventually going to fall
into the bankruptcy courts, Company A may want to try the tactic of
Moving the Goalpost, agreeing to accept a lesser amount if the
account is settled immediately.
Every parent wants to know the counter to the second example! Although
it is impossible to predict every child’s reaction, we have two
suggestions. First, the parent could ask, “If you are grounded
indefinitely and you get asked to the prom, how will you feel when you
can’t go?” A second possible tactic is Calling Your Bluff. The
parent could respond, “Great! At least I will know where to find you
until your grades improve.”
Ask the
Negotiator
Dear Master Negotiator,
I'm a buyer for a major chemical company. The site I am located at is a
manufacturing facility. I've been selected as the materials buyer for a
large turn around that will take place, at this location, later this
summer. Of course the pre turn around work is being planned/performed
and contracts are being negotiated. This is the reason why I went out on
line for extra help and ideas. I came across the web site of which you
are affiliated. I've taken the Karrass training paid for by the company
I am employed and still feel a little stumped but want all the "free"
help I can get. What better way than the challenge from Peter Stark's
newsletter.
The company that I am dealing with has been asked to quote pre turn
around turbomachinery inspections and repairs. Their quotes equal in the
neighborhood of $400,000. I would like to see those costs dropped as
even though I realize they are an OEM, they understand that we chose
their product and that we are pretty much stuck going to them for this
type of work. I would like to see their quotes drop at least 20% across
the board for these 7 or so proposals, but will settle for 10%. (Of
course not saying this to them)
Through my preparations to get a counter offer together, I reviewed the
history of orders that our company (globally in the US) has with their
company (globally in the US). I noted that we placed orders in the
neighborhood of 1.3 million. With that said, I based this discovery as
my major point on negotiating the current proposals down. Our engineers
enjoy working with this company. They are helpful and seem to perform a
good job. But being the OEM, like I said, we are pretty much stuck to
whom we have to use. It is the engineers preference to go to them
likewise. So I led my counter offer with the $$ figures and stated that
we spent a tremendous amount of money utilizing their services. I stated
that looking ahead at our turn around budget, I counter offered a 20%
decrease in their proposal. I've yet to hear from them.
Best Regards,
D
Dear D,
You’ve presented us with a tough challenge. Given the
scenario you’ve shared, you don’t appear to have a lot of options. You
note that the company doing the inspections and repairs is the Original
Equipment Manufacturer, (OEM); that your company’s engineers like
working with this company; and that the company is helpful and has done
a good job in the past. In similar situations, our experience has been
that even if you were able to use a competitor, the OEM would void your
warranty on their equipment.
Our suggestion is that as you move forward with contract negotiations;
ensure that all involved at your company are on the same page. In other
words, get your boss to support you in facilitating a meeting with
engineers who use the OEM. Jointly agree on what a realistic reduction
in the contract should be, and then present a united front. While we
understand your tactic of requesting a 20% reduction, you may have more
credibility with the contractor if you present your documentation,
indicating, for example a 12.5% reduction in cost. If the contractor
knows you’ve done your research and are supported by the engineers using
the equipment, you will have more credibility in the negotiation. In
conclusion, hold your internal negotiations first, and then go forward
armed with your research and knowing that you’re well supported by your
own company in the negotiation.
Best Regards,
Peter and Jane
Ask the
Negotiator - Are you involved in a
negotiation and not sure what strategies or tactics to use?
Send in your toughest negotiation
challenge and our team of expert negotiators will outline a specific
plan to ensure your success. Please send your negotiation
challenge (please put Negotiation Challenge in the subject
line) to patti@pbsconsulting.com.
If your challenge gets published, we'll send you an autographed copy
of The Only Negotiating Guide You'll Ever Need, by Peter
Stark and Jane Flaherty ($14.95 retail.)
To view the latest issue of The Master
Negotiator, the premiere on-line newsletter for negotiators,
follow this link:
The Master Negotiator, Volume 2, Number
11 The Fifteen Rules Every Negotiator Must Know
To view previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
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