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Unit 11: Wholesale Purchasing and Negotiation with Vendors

11. By ........................ emotions and focusing on objective sense of fairness, people gain more Notes
confidence without feeling that they’re making enemies or being victimized.
12. As the negotiations go on, the ........................ adapts by immediately responding to what
the other side does.

11.5 Negotiation Tactics

Negotiation Tactics are a set of skills for life. We are constantly negotiating through life, and we
all find ourselves in a negotiation situation at some time. Whether you are negotiating a
multimillion dollar deal, negotiating a salary rise, negotiating with the car salesman or just
negotiating with your partner or children, we all negotiate through our life. Negotiating is an
essential skill set that we pick up at an early age as we are developing, yet how come so many
of us lose that skill set as we become older. Negotiation tactics are a set of tools that we can draw
on in any negotiation situation. Only when we truly understand the tools in our tool box, and
which tools to draw upon to suit the negotiation situation we are in, can we become true
negotiators. So what is negotiation? And what are the essential Negotiation Tactics? Through
out this blog we will offer advice and tips and explain the various negotiation tactics available,
that can be applied to all most any negotiation scenario.
There are many different tactics that are commonly used in the negotiation process. All of them
have their place, and many of the methods that have been popularized are specialized for
specific types of negotiation. The level of detail the best negotiators put into understanding the
human mind and how to use certain tones of voice coupled with specific tactics to lead the other
party in the direction that they would like them to head is, to say the least, quite impressive. Just
knowing the tactics is only half the battle, but putting them into effective use can be tricky if you
do not know how to properly propose them. A few of the more common tactics that are used in
negotiations include:

Nibbling

Nibbling is among the most popular of negotiation tactics. The actual strategy is to continue the
negotiations after the deal is supposedly done. This tactic is most effective when a great deal of
time has been spending finalizing the negotiation and the other party has invested a great deal
of time into it. For instance, if you are buying a piece of property, after the deal is finalized you
may ask for other accommodations that were not originally part of the plan for the property that
you purchased. This can be a fairly risky tactic although a large majority of individuals will not
renege on the deal after so much time has been put into it. If you choose to try the nibbling
technique, you may not want to ask for too much as this can break down the entire process.
Outright Refusal

One popular negotiation tactic that has yielded a great deal of success is the outright refusal
method. This method works by outright refusing the original offer made to you, and asking
them to do better. Often times the individual who is making the offer will actually negotiate
with themselves and provide you with an offer that is much higher than the offer than was
originally made. While this tactic might be simplistic in nature, it is a well documented method
that has provided many negotiators with positive results for many years.

Conditioning

Conditioning calls for you to place a starting point in their mind prior to beginning the
negotiation. For instance, if someone started to discuss a negotiation for the purchase of a boat

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