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No matter what you’re trying to negotiate in life or business, the concept of “Ethos“—the ethical appeal or credibility of the negotiator—plays a pivotal role.

Beyond the tactics and strategies, Ethos is about establishing a foundation of trust and credibility, crucial for persuasive communication. This principle not only reinforces the negotiator’s position but also nurtures a conducive environment for achieving mutually beneficial outcomes. I want to share how Ethos underpins successful negotiation and how it can be effectively implemented.

The Essence of Successful Negotiation

Success in negotiation transcends the simplistic aim of reaching a win/win scenario. At its core, it involves steering the counterpart toward a decision that aligns with your objectives, while ensuring they perceive this outcome as their own. This delicate balancing act necessitates a strategic approach, grounded in a deep understanding of the counterpart’s needs and motivations. Before entering negotiations, clarity about your desired end result is paramount, as it guides your strategy and interactions.

The Significance of Relationship and Perception

In the realm of sales negotiations, particularly when the economic buyer isn’t directly involved, it’s critical to recognize that the negotiation extends beyond just terms and conditions.

You’re negotiating against the backdrop of how the agreement will reflect on the other party to their superiors. Essentially, you’re championing their reputation and the personal impact of the negotiation on them. This perspective shifts the focus from transactional to relational, emphasizing the importance of perception and the relational dynamics at play. This is why Ethos is so important.

Cultivating Common Ground

One of the most effective strategies in negotiation is to identify and expand upon areas of agreement. This approach not only serves as a solid foundation for building the negotiation but also helps in breaking deadlocks and fostering a collaborative atmosphere. Focusing solely on points of contention can lead to impasse and conflict, whereas finding and leveraging common ground paves the way towards a more productive and harmonious negotiation process.

Implementing Ethos Effectively

• Build Trust: Trust is the cornerstone of Ethos. By demonstrating honesty, transparency, and a genuine interest in the other party’s needs and concerns, you lay the groundwork for a rapport that transcends the immediate negotiation.
• Use Silence Strategically: Silence, often overlooked, is a potent tool in negotiations. It reflects composure, prompts the other party to reveal more, and guards against hasty concessions. I wrote a previous blog on that topic specially.
• Be Mindful of Non-Verbal Communication: Your body language and tone of voice are powerful communicators of your sincerity and confidence. They are integral to reinforcing your Ethos, making every gesture and inflection count towards building trust and credibility.
• Listen Actively: Active listening is not just about gathering information; it’s a demonstration of respect and consideration. It shows you value the other party’s perspective, bolstering your Ethos by highlighting your ethical stance and respect for their position. I know you’ve been told this your entire life, but you really need to have awareness when talking so you can spend time listening for cues.

Incorporating Ethos into your negotiation strategy is not a tactic but a reflection of your ethical stance and dedication to building a negotiation grounded in mutual respect and understanding.

By balancing advocacy for your interests with an authentic appreciation for the needs and perspectives of the other party, you create an environment where trust flourishes, and agreements are reached not just on the surface but in spirit.

Ethos, therefore, is not just a component of your negotiation strategy—it’s the very essence of a successful and credible negotiator.

Brian Parsley

As a co-founder of The Constance Group, I’m at the forefront of revolutionizing sales and leadership strategies worldwide. Our difference? The proprietary “Sales Funnel©” methodology—an innovative approach that significantly enhances selling processes, complemented by our programs in leadership, negotiation, and sales development.

Our distinct edge lies in our personalized approach. Prior to any keynote or workshop, I personally collaborate with stakeholders and attendees to develop a tailored, impactful program. This commitment goes beyond content delivery; it’s about crafting actionable insights that participants can immediately leverage for real-world impact.

Rooted in behavioral science, our strategies offer profound insights into human behavior, empowering your team to navigate complex scenarios with positive outcomes. Our sessions are designed to be engaging and memorable, mixing potent messages with humor and narratives that not only resonate but also inspire lasting change.

Negotiations are an integral part of professional life, whether you’re closing a deal, discussing terms with a supplier, or negotiating your salary. However, it’s not uncommon to reach a point where negotiations stall, and progress seems out of reach. This impasse can lead to entrenched positions, risking not just the negotiation but potentially the relationship itself.

There’s a strategic approach known as invoking a “Higher Authority.” This tactic isn’t about dodging responsibility but about adding a layer of flexibility and strategy to your negotiations. I want to share the “why” and “how” of this technique.

The Purpose of Higher Authority in Negotiations

The core aim of the Higher Authority tactic is to introduce a psychological buffer between the negotiator and the decision-making process. By attributing the decision-making power to an unseen, higher authority, you create a distance from the inability to concede, shifting this responsibility to someone else. This strategy allows you to maintain a stance without appearing argumentative or jeopardizing the negotiation.

How the Tactic Works

The approach is straightforward yet effective. For instance, when faced with a request that you’re unable to meet—like a substantial discount or added services without additional cost—you might say, “I see the value in what you’re asking for, and I want to accommodate your request. However, I need to discuss this with our finance team to see if it’s feasible. Would you be against me circling back to you on that?” This statement accomplishes several things:

• Buying Time: It provides you with the opportunity to consider the proposal more thoroughly or to consult with others.
• Avoiding Direct Confrontation: It prevents a direct rejection, helping to maintain a positive relationship with the other party.
• Reassessing the Offer: It encourages the other party to reconsider their demands, particularly if they believe the deal might be in jeopardy.
• Negotiation Leverage: It can serve as a leverage point, potentially leading the other party to offer concessions to bypass the need for higher authority approval.

The Strategy in Action: A Practical Example

Imagine you’re in the final stages of negotiating a contract, and the client pushes for terms that you find unreasonable. Instead of outright refusal, invoking a higher authority offers a strategic pause, signaling your intent to find a solution while maintaining your negotiation position.

The Ethical Use of Higher Authority

While the Higher Authority tactic can be incredibly effective, it’s crucial to employ it judiciously and ethically. Overuse or perceived misuse can erode trust, making it less effective over time. It should be a genuine part of your negotiation toolkit, used when you truly need to consult or when strategic pauses can benefit the negotiation outcome.

Remember, reaching a stalemate in negotiations doesn’t have to signify the end of conversation. When you invoke a higher authority, you can create the space needed to navigate through impasses.

This tactic not only helps in managing difficult requests but also maintains the integrity of the negotiation process. Like all negotiation strategies, the key is in its thoughtful and ethical application, ensuring that it serves to facilitate dialogue and mutual understanding rather than as a mere stalling tactic.

I love working with our clients to assist them in winning more deals leveraging strategies like this one.

Brian Parsley

As a co-founder of The Constance Group, I’m at the forefront of revolutionizing sales and leadership strategies worldwide. Our difference? The proprietary “Sales Funnel©” methodology—an innovative approach that significantly enhances selling processes, complemented by our programs in leadership, negotiation, and sales development.

Our distinct edge lies in our personalized approach. Prior to any keynote or workshop, I personally collaborate with stakeholders and attendees to develop a tailored, impactful program. This commitment goes beyond content delivery; it’s about crafting actionable insights that participants can immediately leverage for real-world impact.

Rooted in behavioral science, our strategies offer profound insights into human behavior, empowering your team to navigate complex scenarios with positive outcomes. Our sessions are designed to be engaging and memorable, mixing potent messages with humor and narratives that not only resonate but also inspire lasting change.

In the world of business, negotiation is as ubiquitous as it is crucial. Whether in sales, procurement, or project management, or even at home, the ability to negotiate effectively can make the difference between a successful deal and a missed opportunity. A common negotiation tactic is “splitting the difference”, where parties meet halfway in an attempt to fairly resolve their dispute. However, this approach, though popular, doesn’t always lead to the fairest or most effective outcomes. Today, I want to explore a more nuanced negotiation tactic that goes beyond simple compromise, aiming for not just agreement but optimal satisfaction for all involved.

The Misconception of Fairness

It’s a widely held belief that if both parties compromise equally, the outcome is inherently fair. This sounds reasonable at first glance, but the reality is often more complicated. Take, for example, the staffing industry, where a client may demand a 42% markup, believing it to be fair based on their perspective. However, this demand might not be reasonable or justifiable in the broader context of the negotiation. However, the real question is, “compared to what?” Is that what the market commands? What you thought you should pay? What you’re currently paying but unhappy? Such scenarios reveal that initial positions may not hold equal weight or reasonableness, challenging the notion that an equal compromise is always fair.

A Real-World Scenario: The Real Estate Example

Consider a homeowner who lists their house for $500,000, with a buyer offering $480,000. Splitting the difference would suggest a sale price of $490,000, appearing fair at a glance. However, if the house’s real value is closer to the buyer’s offer, then the seller benefits disproportionately from the compromise. This example illustrates that the perceived fairness of splitting the difference can mask an underlying unfair advantage. So never assume this tactic will work in your favor.

The Tactic in Action

Imagine a contractor negotiating a remodeling job, with an initial bid of $86,000 and a client offer of $75,000. After negotiations, the customer offer was raised to $80,000, with the bid lowered by the Contractor to $84,000. Rather than proposing to split the difference, the contractor expresses regret over the potential deal falling through over a relatively small amount. This often leads the client to suggest splitting the difference themselves, effectively setting the negotiation at $82,000. This maneuver resets the negotiation range in the contractor’s favor without them making an additional concession.

The Impact of the Technique

This tactic has a profound psychological impact. By letting the other party suggest splitting the difference, they perceive it as a concession, feeling they have “won” part of the negotiation. This not only shifts the negotiation range favorably but also enhances the other party’s satisfaction with the outcome, believing they’ve successfully steered the negotiation.

Negotiation isn’t merely about reaching a middle ground; it involves a deep understanding of the value and fairness of initial positions. Encouraging the other party to propose splitting the difference can be more advantageous than offering it yourself, as it strategically shifts the negotiation range and improves the perception of a successful negotiation outcome. This approach invites us to think more critically about our negotiation strategies, focusing not just on compromise but on achieving a genuinely satisfactory outcome for all parties involved.

I invite you to share your experiences and thoughts on this tactic. Have you applied a similar strategy in your negotiations? How did it impact the outcome?

Brian Parsley

As a co-founder of The Constance Group, I’m at the forefront of revolutionizing sales and leadership strategies worldwide. Our difference? The proprietary “Sales Funnel©” methodology—an innovative approach that significantly enhances selling processes, complemented by our programs in leadership, negotiation, and sales development.

Our distinct edge lies in our personalized approach. Prior to any keynote or workshop, I personally collaborate with stakeholders and attendees to develop a tailored, impactful program. This commitment goes beyond content delivery; it’s about crafting actionable insights that participants can immediately leverage for real-world impact.

Rooted in behavioral science, our strategies offer profound insights into human behavior, empowering your team to navigate complex scenarios with positive outcomes. Our sessions are designed to be engaging and memorable, mixing potent messages with humor and narratives that not only resonate but also inspire lasting change.