The No Response Response
Remember that one legitimate form of response is: No response. Tactically, this can be very effective.
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Regardless of what type of negotiation is going on and of the attitude and experience of your counterparts, sometimes you reach an impasse. This can be about Purchase Price or any other term(s) important to both parties.
If you can manage, the best position in any negotiation is when the other side wants to make a deal more than you do. Remember Try Not to Care (Too Much). Now you want to make a deal, of course you do, but your attitude is: Well, if this does not work out, there will be other alternatives. Right? But at the same time, you would prefer not to start again from scratch. What should you do?
Concede? Again, this is not a moral dilemma. Sometimes this is simply the practical or efficient thing to do. So I am not here to tell you this is the wrong thing to do. But I hope this book has given you some alternatives.
One thing you could do is: Simply don’t respond to the other side’s last counter. This can be particularly effective if negotiations, to this point, have been proceeding at a rather brisk pace. Don’t explain, just stop.
First, a change of pace is always striking. It will get their attention. And second, put yourself in their shoes. Would you not worry that you had overdone it? Pushed too far, tried to get too much. Turned off the other side. And you might also worry: Geez, I wonder if they are reconsidering alternatives? The delay alone might make you nervous.
Right? So sometimes it can be effective to let the other side worry a bit. And yes, some people will worry more than others. And of course some will not worry at all, and for them this tactic will not be effective. But it is fair to say that most people will worry to some extent.
So the question then becomes: So how long do we let them stew? And there is no right answer. You just have to feel your way. Here, there is no substitute for experience. Sometimes it’s a few hours, sometimes overnight will get the job done.
Let me add here that you can halt communication, or you can halt negotiation, or both. But any longer than 24 hours, it is probably, but not always, best to continue communication with: Well, we’re still thinking about your last counter. Then of course you might get: Well, when can we expect your answer? Again, feel your way, because the best response might be: It’s hard to say.
If you really don’t care too much and want the absolute best deal you can get, stop both indefinitely, and wait for them to change or improve their last counter. Don’t say no; rather don’t say anything.
Now, of course, this is risky business. So if you need the deal to work, I don’t recommend this sort of thing. But if you can afford to play hardball, this can be an effective way to do it.
One final note on this tactic. Remember so many brokers are not business savvy or have limited business savvy and experience. So the broker’s reaction is difficult to predict. But in my experience, it is rarely: Oh, these guys are playing hardball; this is just part of the negotiating process. That’s certainly what I would think. But no, with brokers, the reaction is typically: I have never experienced such rudeness. It never seems to occur to him that this is part of the process. And remember, he wants and expects quick and easy. Point is, don’t be surprised if a broker calls you rude. But then you cannot say: Well, you know, we are in a negotiation. So if you must talk with him, be conciliatory and assure him that you are still interested. Don’t allow his ineptitude to get in your way.
My suggestion: Don’t take a rhinestone cowboy to a gun fight. Want to play hardball, find a gunslinger.