Thursday, 2 June 2011

PASSIVE NEGOTIATION

Negotiation is an art of war in subtle form.

Sometimes, as a buyer, the position you are taking in negotiation will determine the strategy you will apply and the other party will also be on the prowl to carefully study your real position. If as a party involve in a negotiation, and you have done your thorough research on the issue and strength and weakness of your position and the opposition position,you tend to be either very confidence or you may be aware of the traps and hurdle you are going to face and adopt a cautious approach.

Undertaking a research to your negotiation case and be prepare will be the best defense or attack strategy you will choose to make.

What is passive negotiation strategy?

As the word "passive" by itself, it mean to be taking a quiet or low or no response strategy and keep all your thought to yourself. In passive negotiation, you may either participate in the negotiation by being a listener and reserve your statement of intend or proposal to a later stage. You may also not directly involve in the negotiation but are represented by your subordinates or appointed agent.

Sometimes this strategy may come as a lucky break.

Recently i am lucky enough to apply this strategy!

A particular supplier came calling for appointment with me and the key agenda was to propose a price increase. As normal to myself, i reserve any commitment to this proposal and let the supplier calling the rule of the game.

I let this matter to be digested by more then a week and ignore the demand.

But in the meantime, i ask my assistant to review other proposal and check if we can change the specifications of the material and demand for a review with other suppliers. True enough, a number of potential suppliers willing to propose better costing.

With this information, i ask my assistant again to write to this particular supplier that since there a demand on price increase, we have decided to review the specification and ask for a line review. They may lose the businesses if based on the costing, other suppliers are much lower then them with this new specification.

You know what?

They decided that they shall not take any risk and maintain current prices without any increase for the short term!

I did not say a word to them on this but uses a subtle strategy of attack later which caught them off guard. Seem the homework not properly research by them!

Yes, it seem catching the opposition off balance but in negotiation, the element of surprise is very important. It no benefit to bark but without a bite isn't it?

No comments:

Post a Comment