Free Negotiation Tip: The Key to Making Effective Tradeoffs — Define your tradeoff
February 3rd, 2009My pet peeve with the negotiation literature is that all too often authors refer to concessions and tradeoffs interchangeably, meaning they talk about tradeoffs but call them concessions or worse, call concessions tradeoffs. Mixing these terms creates confusion in the literature and during the actual back and forth bartering. Unskilled negotiators don’t distinguish between offering something without an expectation of getting something in return, and offering something with the explicit understanding that the only way their counterpart will benefit is to offer something in return. I see many negotiators make concessions believing that they are making tradeoffs just to become disappointed or upset that they did not get anything in return.
The problem is that unskilled negotiators think that by making a concession the other party will naturally make a concession in return. Because of the highly competitive nature of some negotiations, an unspoken rule may actually prevent such reciprocity. I’ve heard negotiators say, “if they don’t ask, I don’t offer.” Without any explicit obligation of reciprocity, the negotiator has just made a concession, not a tradeoff.
Furthermore, some companies do not always think in terms of tradeoffs when working with their suppliers. In fact, some professional buyers speak primarily in terms of concessions. From their point of view, there are some good reasons. Enterprise companies do not have the bandwidth to create a fully tailored agreement with every vendor. By the very nature of their size, they need uniformity. Additionally, the people creating these agreements might not be the ultimate decision maker, limiting their ability to make tradeoffs. More importantly, the person you work with might be so far removed from the end goal of how your product or service will be used that the tradeoffs may seem less meaningful to them.
Excerpt from Jeanette Nyden’s negotiation skills book.
This entry was posted on Tuesday, February 3rd, 2009 at 3:15 pm and is filed under Tradeoffs/Counteroffers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
February 3rd, 2009 at 4:00 pm
Hi. I am a long time reader. I wanted to say that I like your blog and the layout.
Peter Quinn
February 3rd, 2009 at 9:10 pm
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