Negotiations Training

One More Thing...
Neutralizing Tactics: Nibbling

Some negotiators are always looking for that one way to get just a little bit more out of a negotiation. Regardless of the fairness of a deal, they think to themselves that it never hurts to ask for one more concessions. These people must be awfully hungry because they use a tactic known as Nibbling, asking for one small concession after another that, over time, can add up to a lot of "freebies".

Jim: "So, if you'll just sign this section and initial the first page, we can have the quarry prepare three pallets of slate in time for installation at your new corporate campus."

Mark: "Just sign right here? OK... now, you were planning to cover the tax for us since our order is so large, right?"

The pen is about the touch the agreement... Jim is starting to spend his commission check in his head and the buyer hits him with something that will take a big chunk out of his margin... and his commission. His instinct tells him to to take the hit by absorbing the tax so as to get the order but his instinct should really tell him that something stinks. The buyer is nibbling.

Often, negotiators do this towards the end of the negotiation. Just when it seems like everything has fallen into place, the come in from left field with one more (or two or three) request that swings the deal to their side. Some realize that they may not get anything and are all too willing to sign while a few might actually walk away from the table if they don't feel like they got what they want. Most of the time, it's simply a tactic and it can be defeated.

The best way to deal with Nibbling is to confront it straight-on. If they are asking you to throw something in for free, you should communicate to them the cost to you of adding what they think is a "cheap" concession. For example, in Jim's situation, the tax might take 8.25 percent out of his margin. If this order was indeed as large as the client believes it to be, chances are the pricing was attractice enough to make the margin lower than Jim would like. Eating the tax may cause Jim to take a bit hit on profits, settle for breaking even or possibly lose money. Jim should let the client know what is at stake if he absorbs the tax.

Jim: "Since our two companies have been working together for the past two years and you upped your order to three pallets rather than two, I provided you pricing that was very attractive. If I were to absorb the tax on the shipment, I would end losing money on our transaction."

Jim might also use the situation to his advantage by seeing if the client would be willing to make a concession. As you know, never make a concession without receiving a concession in return.

Jim: "If you would be willing to place an order for a fourth pallet, I would be able to absorb the tax on the first three pallets."

Many times, the other party will either back off their request, realizing the difficulty of receiving their concession. In the second instance, Jim regained control of the negotiation by making a clear demand - "if you want me to eat what could amount to thousands of dollars, you're going to nee to send a bigger order my way. I can't do one without the other."

Over time, you will learn which parties are nibblers and will be able to prepare a strategy that allows you to anticipate their requests before they try blindside you.