Negotiation TacTricks

#18 Power of Legitimacy

Use irrelevant documentation to support an argument

A negotiator presents documentation to support their negotiating position.  Most commonly, this is simply a formal price list.  This technique is especially useful for selling intellectual property rights (such as software) that have no production costs.  A formal document helps to support a price that is hard to justify, based on direct costs.

The referenced documents are usually internal and this tactic can be linked to #7 Lock-in / Pre-Commitment / Internal Rules.

During most negotiations, each party presents its own standard terms and conditions that include, for instance, payment terms.  The seller wants paid in 14 days and the buyer specifies 90: both claim that this is mandated by their respective finance departments – but both also know that it is an aspirational target.

Counters:

1. Ignore the document and make an offer as if it did not exist
2. Ask for evidence that the document is real and authoritative and that it is actually being implemented.  
3. Point out that document has little relevance to the negotiations and is actually constraining their opportunities for doing business
4. With a product like software, a buyer can claim that they do not need the full functionality

If you concede on something like payment terms, do so as part of the overall negotiation, getting something in return.