Self Help

When negotiating, a common tactic of bargainers is creating an artificial bottom line. “I’m sorry, I can’t go any lower than that. It is my bottom line.” Often, we assume that this limit was established by someone else with equal or greater authority (spouse, supervisor, company policy), or that it is based on precedence. Consequently, we accept the line drawn in the sand, and we don’t cross it. For example, a representative from a water bottle company may say “I can’t sell you fewer than 120,000 bottles” or “I cannot go any lower than 20 cents per bottle for a rush order.” Using odd numbers, such as 21.5 cents per bottle, can add further credibility to an offer.

Similar to the bottom line is demarcating what is negotiable from what is not. In fact, it may be best to come right out and establish these boundaries, first by saying what is negotiable and then what is not negotiable: “All of the machinery and outbuildings are negotiable, but the horses are not for sale.” By taking charge and following this sequence, you hold the other party’s attention with “the good news” (here is what is negotiable) before clarifying what is not negotiable. You might even precede your declaration of what is not negotiable with an explanation (”All the machinery and outbuildings are negotiable. The horses belong to my wife and she wants to keep them.”).

How to Countermeasure this Bottom Line Approach: A frontal assault on someone’s bottom line is likely to threaten or embarrass him (losing face, if he simply caves in). There may be occasions where this works, but a better approach is to employ a little negotiation jujitsu. Redirect the negotiation to focus on other issues or items that are important to this person (for example, various pieces of machinery). Negotiate those. Now the other party has an incentive (something to lose) if he doesn’t back away from that bottom line and complete the negotiation.

With the second variation of this tactic - drawing lines around what is negotiable and what is not - the best approach might be to take control yourself by establishing the boundaries early on. If the other party has already taken the initiative, however, then you have a couple of options. Assuming that the non-negotiable items or issues are of some value to you, find out why they are valuable to the other party - and just how valuable. The answer to “Why?” might provide the insight for a breakthrough, win-win solution. A second approach is to negotiate all those items that are on the table, perhaps to the advantage of this party, building momentum and commitment. Then, before the deal can be closed, you bring up the items or issues that were nonnegotiable. Much depends, of course, on how nonnegotiable those items or issues really are.