The Intelligent Negotiator by Charles Craver

thought was worth $75,000. When he began the serious discussions with the insurance company representative, it became clear that his opponent thought the claim was worth more than he did. He immediately raised both his aspiration level and his planned opening demand to take advantage of this unexpected development. He finally settled his “$75,000 case” for $250,000. When he was done, his only concern was whether he could have obtained more. The insurance company representative must have known something that he did not. For example, the representative may have known that the treating physician was drug- or alcohol-impaired when he treated the claimant. My friend had no information of this kind, but he was certainly willing to accept his opponent’s unanticipated generosity.
    If you are sitting across the table from an adversarial negotiator, chances are that your counterpart will begin with a wholly unrealistic offer favoring him or herself.What should you do when this happens? Don’t make the mistake of responding to unreasonable opening offers in a casual manner. That behavior may allow your counterpart to think his or her positions are not outrageous. When negotiators begin with absurd positions, they almost always know that their offers are outlandish, and they expect you to say something negative about their position. If you fail to do so in a forceful way, they begin to think their unrealistic offers are acceptable—and they raise their expectation level. If your counterpart opens this way, politely but forcefully indicate your displeasure with his or her opening position. Tell this person directly that the offer is untenable. This type of negotiator expects you to do so and actually feels comfortable when you do. They are merely information gathering in an extremely aggressive manner.
    In some instances, you will be able to persuade counterparts who have made opening offers to “bid against themselves” by making additional offers. Try this by asking: “Is that the best you can do?” or alternatively: “You’ll have to do better than that, because …” If you provide them with a reason to make you another offer (for example, you have received a better offer from a competing party), they may give you a more generous position statement. If you are lucky, a careless counterpart may make several concessions before you even state your own opening position. Another way to generate the same effect is to employ the strategic use of silence. Following opening offers or subsequent concessions, look dejected and remain silent, and you will be amazed how often counterparts fill the voids with additional position changes.
    Is there an easy way to induce counterparts to make the first offer? Unfortunately, there is not. In some circumstances, however, we expect one side to go first as amatter of common practice. For example, people who put their house on the market are expected to provide a listing, or asking price. Retailers are supposed to list or state the price of the commodities they are selling. Employers offering applicants new positions are usually expected to either list in the job announcement, or state in the job offer the salary involved. Other than these types of situations, the marketplace does not suggest who should go first. When the time comes, remember the advantages to be gained when you induce your counterpart to make the first offer.
    P UTTING Y OUR P RIORITIES IN P LACE
    The Intelligent Negotiator wishes to maximize the joint return of both parties. To do this, you must know which items are most and least valued by your counterparts. Like your goal priorities (the ones you set in chapter 2 ), your counterparts’ priorities are critical. Listen carefully to discover what they are.
    Identify Conflicting Priorities
    The various items to be exchanged can be classified as “essential,” “important,” and “desirable.” Which terms do they feel they must have, they strongly wish to have, and