Posted by: nbaground on: January 25, 2010
The Vice Tactic is a negotiation tactic that is frequently used in support of business related negotiations. Have you ever been in a discussion where you have been asked to improve your offer without being given any specific target?
Example: Buyer to Seller
'Thanks very much for your proposal. We like your tender but unfortunately we need you to improve your offer. Please go away and come back with an improved offer. '
To the inexperienced sales person this may seem like a fantastic buying indicator and that by reducing the price they will guarantee that they get the business. However, what happens in reality is that when the sales person gets back to them with an improved offer the whole tactic is repeated again.
Example: Buyer to Seller:
'Thank you very much for improving your proposal. I have discussed it with our Sales Director and she thinks that if you can further improve your offer we will be able to get much closer to reaching a settlement.'
What is happening is the buyer is tightening the Vice tactic all the time without giving the sales person a target price to aim at. This suggests that the buyer will continue to ask for an improved price as long as each demand is met with a discount.
To avoid falling prey to the use of the Vice tactic you must ensure that you ask for a budget in response to a request for a discount and you will improve your negotiation skills at the same time.
Example: Buyer to Seller
'Thanks very much for your proposal. We like your tender but unfortunately we need you to improve your offer. Please go away and come back with an improved offer. '
Seller's Response
'I am not sure that it will be possible for us to better our offer to such an extent that it meets your targets. To assist us in understanding whether it will be likely for us to bridge the difference between our current bid and your preferred outcome it would be very supportive to me to understand what level of offer you would be willing to accept.'
Enhance your negotiation training by deploying this counter tactic at the next opportunity.
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