Exhibit 13.4 Bargaining tactics Acceptable bargaining tactics Description/ When When Used Tactic Purpose To Use Against You, Your Best Response Auction Create an When you have Focus on auction of strong your HLE, competitive bids leverage never go – for a scarce inventory or a lower than resource either product in high your – a buyer for an demand. Create away, and advertising a fear of losing signal to the budget or a in the side. other side seller for a that you will walk away product. and not get into a competitive auction. Pick only the To apart a When a pick best, most package buyer tries desirable offering; to to elements of a negotiate for you, product or the most show high package. desirable prices for individual the elements individual separately, not units and a as a whole. lower price for the overall package. Crunch Respond to an In response to a Don’t give a offer by saying, low offer. The number. If not good rule is, a buyer “It’s enough,” but do gives says, “Whoever not give a a number first, too “You’re number. loses.” high,” Objective is to without get the other giving a side to respond number, with a number you respond that is than with, “What you hoped for number do because of the you have in other side’s fear mind?” of losing. Flinch A sudden, In response to a Remain physical reaction lowball offer. calm. Do
Exhibit 13.4 Bargaining tactics Acceptable bargaining tactics Tactic Description/ Purpose When To Use When Used Against You, Your Best Response Auction Create an auction of competitive bids for a scarce resource – either a buyer for an advertising budget or a seller for a product. When you have strong leverage – inventory or a product in high demand. Create a fear of losing in the side. Focus on your HLE, never go lower than your and signal to the other side that you will walk away and not get into a competitive auction. Pick only the best, most desirable elements of a product or package. To pick apart a package offering; to negotiate for the most desirable individual elements separately, not as a whole. When a buyer tries to you, show high prices for the individual units and a lower price for the overall package. Crunch Respond to an offer by saying, “It’s not good enough,” but do not give a number. Objective is to get the other side to respond with a number that is than you hoped for because of the other side’s fear of losing. In response to a low offer. The rule is, “Whoever gives a number first, loses.” Don’t give a number. If a buyer says, “You’re too high,” without giving a number, you respond with, “What number do you have in mind?” Flinch A sudden, physical reaction In response to a lowball offer. Remain calm. Do away,
MS_5_Chapter_13_NegotiatingClosing_COMPLETE.docx