The Power of Silence in Negotiations: Part 1
One trick that many practiced negotiators use will sound familiar to any journalist: keep quite and let the other person talk. In an interview, the practice often results in the interviewee becoming uncomfortable and beginning to say all sorts of things to fill the dreaded quiet. In that rush of words, you can pick up gold.
In negotiations, the gold you pick up can be more the folding currency type. Although a good negotiator won't get rattled by this, you'd be surprised at the number of people in corporations and pubications who really are poor negotiators. That is one reason you'll hear things like "the lawyers make us do this," because they really are sweating bullets. In negotiating, though, you go one step further. You want the other person not just to talk, but to talk first, at least in terms of substantial issues. When it comes to discussing rates, for example, speak up long enough to ask, "What is your budget for this project?" or "How much do you typically pay for this sort of project?"
You might get someone pushing back, asking "What would you charge?" or "What do you usually get?" But usually the person will start spilling inforation that is useful. You might learn that the rate is absurdly low from your view, which means you'll have to structure the conversation one way. Or it might be that they're open to larger fees than you realized, and then you continue the negotiation another.
There is a great story about how this technique can work. Thomas Edison and his advisor had brought the inventor's latest device - the ticker tape - to a famous banker. They asked how he might be able to use such a machine, but they already knew what the answer would be. The information would let the banker react more quickly and beat out competitors.
The banker offered something like $5,000, a considerable amount of money at the time. Edison and advisor kept quite. The banker - and mind you, this person would normally be an expert negotiator - immediately offered more and was greeted by more silence. This happened a few times until the guy offered something like $150,000 and said it was his final offer. They accepted and signed and the banker gloated becaue he had been willing to go as high as $175,000 or so. Edison told him, "I would have settled for $10,000."
When it comes to negotiations, silence is your friend. Tomorrow, I'll show an example from my own recent experience.
In negotiations, the gold you pick up can be more the folding currency type. Although a good negotiator won't get rattled by this, you'd be surprised at the number of people in corporations and pubications who really are poor negotiators. That is one reason you'll hear things like "the lawyers make us do this," because they really are sweating bullets. In negotiating, though, you go one step further. You want the other person not just to talk, but to talk first, at least in terms of substantial issues. When it comes to discussing rates, for example, speak up long enough to ask, "What is your budget for this project?" or "How much do you typically pay for this sort of project?"
You might get someone pushing back, asking "What would you charge?" or "What do you usually get?" But usually the person will start spilling inforation that is useful. You might learn that the rate is absurdly low from your view, which means you'll have to structure the conversation one way. Or it might be that they're open to larger fees than you realized, and then you continue the negotiation another.
There is a great story about how this technique can work. Thomas Edison and his advisor had brought the inventor's latest device - the ticker tape - to a famous banker. They asked how he might be able to use such a machine, but they already knew what the answer would be. The information would let the banker react more quickly and beat out competitors.
The banker offered something like $5,000, a considerable amount of money at the time. Edison and advisor kept quite. The banker - and mind you, this person would normally be an expert negotiator - immediately offered more and was greeted by more silence. This happened a few times until the guy offered something like $150,000 and said it was his final offer. They accepted and signed and the banker gloated becaue he had been willing to go as high as $175,000 or so. Edison told him, "I would have settled for $10,000."
When it comes to negotiations, silence is your friend. Tomorrow, I'll show an example from my own recent experience.
Labels: negotiation, quiet, silence, technique
posted by Erik Sherman | 12:04 PM
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