Model:
Summary:
WRECKING BALL (Typical Sales Motion)
The "wrecking ball" negotiation approach can indeed involve making no concessions or very few concessions throughout the negotiation process, maintaining a tough, uncompromising stance. The negotiator using this tactic often holds back on giving in until the very end of the discussion.
Here's a breakdown of this strategy:
1.No Early Concessions: Throughout the negotiation, the party using the wrecking ball approach remains firm and unyielding. They may reject offers, refuse to compromise, or even escalate demands.
2.Final, Large Concession: As negotiations reach a critical point, where it seems like no agreement could be reached, the negotiator may suddenly offer a significant concession. This concession is typically larger than what would have been offered in a more collaborative negotiation style.
3.Goal: The primary goal here is to secure the business or achieve the desired outcome, even if it means making a concession that is not entirely favorable. The idea is to push the other party to their limits and then offer a solution that seems like a relief in comparison to the tough stance maintained earlier.
4.Risks: This approach is risky. It can lead to unprofitable agreements, damage business relationships, and may not be sustainable in the long term. It can also backfire if the other party decides to walk away from the negotiation altogether.
It's important to note that while this strategy might result in a short-term win or in securing a particular deal, it could have negative implications for long-term relationships and reputation. Skilled negotiators often balance firmness with flexibility, understanding when to make strategic concessions that benefit all parties involved.
MARTINI GLASS (Best Approach)
The "martini glass" analogy in negotiation describes a strategy where concessions start large and become progressively smaller, with the process stopping midway. This approach is symbolic of the shape of a martini glass: wider at the top and tapering down to a narrow base.
Here's how this approach works in the context of negotiation:
1.Large Initial Concessions: The negotiation starts with larger concessions. These are designed to build trust and goodwill, demonstrating a willingness to compromise and find a middle ground. The idea is to set a positive tone for the negotiation, showing that you are reasonable and open to finding a mutually beneficial solution.
2.Progressively Smaller Concessions: As negotiations progress, each subsequent concession becomes smaller. This tactic indicates that you are reaching the limits of your flexibility. It sends a message that while you are cooperative, there are bounds to what you can offer. This can help in managing the expectations of the other party.
3.Stopping Midway: The negotiation stops when it reaches a point that resembles the midpoint of a martini glass. The reason for stopping here is strategic. It suggests that you have reached your limit in terms of concessions and that any further negotiation would not be productive or might lead to an unprofitable or unsustainable agreement. This halt serves as a signal that you have already made significant compromises and that it's time for the other party to reciprocate or accept the offer.
The martini glass strategy is effective in demonstrating a commitment to finding a fair and balanced solution while also clearly communicating your limits. It's a more nuanced approach than the wrecking ball method and is often better for maintaining positive long-term relationships. By managing the scale and frequency of concessions, you maintain control over the negotiation process, ensuring that you do not concede more than is sustainable for your interests.
Sources:
Quotes:
”If you never hear no from clients, if the other side in a negotiation has never balked to something you’ve asked for, then you are not pricing yourself high enough, you are not being aggressive enough.’ - Ryan Holiday
“Only deal with price if price is the last issue on the table. To find out if it is the last issue, take price off the table and see what happens. If nothing happens, there is something important missing. Find out what it is.” - Mahan Khalsa