Sunday, June 25, 2017

A632.4.4.RB_DeceptionInNegotiations_LouBeldotti

A632.4.4.RB
Deception in Negotiations


“Can you detect a lie?  One study found that 28 percent of negotiators lied about a common interest issues during negotiations, while another study found that 100 percent of negotiators either failed to reveal a problem or actively lied about it during negotiations if they were not directly asked about the issue.” (Hoch et al, pg. 187, 2001)

            I have experience in this.  In the early 90s, I moonlit as a car salesman and from 1994 – 2003, I served as an US Army Recruiter.  Let me be honest, a sales person does what he or she has to close the deal.  Is lying required?  No.  Is omitting information wrong?  From my experiences I’m going to go with a “no”.  If you didn’t ask me, I didn’t volunteer the information.

            In car sales, the product spoke for itself.  During delivery, all the bells and whistles need to be described to the buyer.  The negotiation happened during the sale and it was actually the Sales Manager and Finance person that gave the bottom line.  It was up to the salesperson to close the deal.  Tactics like telling the customer that the price was only valid “today” or throwing in free oil changes usually closed the deal.  Other layers of persuasion would be added if the customer wanted to “walk”.

            Recruiting was a bit different.  In the old days, we would seek a dominant buying motive (DBM), by using TEAMS.  Training…was the applicant looking for a skill?, Education…was the applicant looking for money for college?, Adventure…was the applicant looking for a thrill like jumping out of a plane?, Money…was the applicant looking for a guaranteed pay check?, or Service to Country…was the applicant just interested in serving his or her country or carrying on a family tradition? 

            Omission of information is common practice in negotiations.  Sadly, so is lying.  However, a skilled negotiator can detect lies very easily.

            So, in this blog, I am asked to reflect on deceptions in negotiations and describe four ways to reduce your vulnerability to deception during negotiations, relate an example of a recent negotiation in which I was misled and one in which I may have overstated a claim. In the case of the overstatement, how far would I have gone, or did I actually go, to leverage your position?

            So how does one reduce his or her vulnerability to deception during negotiations?  Here are my thoughts.

            1.  Don’t be gullible and believe everything you hear.  Vet, vet, vet!

            2.  Do your research.  Know who you are dealing with.

            3.  Sleep on it.  Never say yes until you are absolutely sure.  This pisses sales people off. 

            4.  Take “no” for an answer.  Give “no” for an answer. Don’t be afraid of “NO”.

            My wife and I have had three opportunities to say no in the past year and a half.  We have had someone try to sell us a water softener, another try to convince us into solar panels, and a third try to sell us another water softener.  The first water softener person was very convincing.  We actually said “yes” but after the agreement, we exercised our “buyers right to rescind” after sleeping on it because the sale was made in our home.  The solar panel guys visited us over a year ago.  He then made contact again and we invited him out to our home.  His sales pitch made sense but we said “no” because of the cost.  Finally, the next water softener sales person made sense and we have been enjoying the product for several months.  The company threw in ten years of soaps, lotions, and potions.  We saw this as a win-win although the price was higher than me being a similar device at Lowes or Home Depot and installing it myself.

            Since I work in secondary education, I really don’t have many opportunities to overstate my product.  Secondary education is compulsory to age 16 in most states.  Kids have to go to school.  However, kids do not need to pick my elective.  I tell them how great my program is and they and their parents make their choice.  I need to keep my numbers up to 10% of the student population or 150 Cadets per year, whichever is lesser.  Sometimes I have to sell the program. 

Reference

Hoch, S.J., Kunreuther, H.C., with Gunther, R. E. (2001). Wharton on Making Decisions. Hoboken, NJ: John Wiley & Sons



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