"Radio Silence" as a Negotiating Tactic
Some misguided souls still cling to the false idea that "silence" is an effective negotiation tactic. Those people are hopelessly out of touch, and will ultimately fail in the hospitality business.
The theory went something like this... "When in a negotiation, stop communicating. The other party will panic, fearing that they are losing your business, and will desperately come back with a lower bid."
Today, especially in the United States, it is the most ineffective negotiation tactic still used, and causes far more damage to the reputation and credibility of the person doing it than the other party. Those who engage in this type of tactic come across as unprofessional, amateurish, and inept.
Perhaps 50 years ago, when your grandparents were in business that may have been the case, but not today. Today, such tactics are not only looked down on, they will cause you to be blacklisted by other companies that you want... or need... to do business with.
"Radio silence" when someone has given you a bid in good faith is extremely disrespectful to the other party, and conveys very loudly the message that you think they are beneath you. No wonder vendors, especially, will blacklist you in a heartbeat for doing it. Some companies are so tired of the practice that they have their own internal "deadline" for communication responses, and will simply delete you from their database if you string them along.
The business climate today is not the same as 50 years ago. It is based on the value proposition first and foremost. In the old days, vendors started "high" and anticipated haggling. Not today.
Vendors do a tremendous amount of research into pricing when they set their prices in order to be competitive. They try to offer the best value for a fair price. They have zero interest in haggling with you, and indeed may walk away completely when they encounter it. In most cases, discounts are provided for certain performance or purchasing practices, and are clearly communicated up front. Asking for additional discounts for inane reasons like the "promise of more business" is not only ineffective and insulting, it is also as transparent as glass, and will mark you as a beginner and inexperienced negotiator.
Unlike your grandfather's day, business today is fast-paced, and emphasizes business skills such as ROI analysis, buy/build analysis, and other algorithms that rely more in mathematical and analytical skills than on ham-fisted, unprofessional manipulation.
Be clear with your requirements, respect the other party, and communicate in a timely manner... 1 day for email, 1 hour for texts. Nothing else is acceptable. And no, you're NOT "busier" than the person you're communicating with, and no, you're not impressing them with how important you are when you fail to exercise the common courtesy of timely communication. Instead, you are showing them how unprofessional you are, and that they should probably ignore you and move on.
The theory went something like this... "When in a negotiation, stop communicating. The other party will panic, fearing that they are losing your business, and will desperately come back with a lower bid."
Today, especially in the United States, it is the most ineffective negotiation tactic still used, and causes far more damage to the reputation and credibility of the person doing it than the other party. Those who engage in this type of tactic come across as unprofessional, amateurish, and inept.
Perhaps 50 years ago, when your grandparents were in business that may have been the case, but not today. Today, such tactics are not only looked down on, they will cause you to be blacklisted by other companies that you want... or need... to do business with.
"Radio silence" when someone has given you a bid in good faith is extremely disrespectful to the other party, and conveys very loudly the message that you think they are beneath you. No wonder vendors, especially, will blacklist you in a heartbeat for doing it. Some companies are so tired of the practice that they have their own internal "deadline" for communication responses, and will simply delete you from their database if you string them along.
The business climate today is not the same as 50 years ago. It is based on the value proposition first and foremost. In the old days, vendors started "high" and anticipated haggling. Not today.
Vendors do a tremendous amount of research into pricing when they set their prices in order to be competitive. They try to offer the best value for a fair price. They have zero interest in haggling with you, and indeed may walk away completely when they encounter it. In most cases, discounts are provided for certain performance or purchasing practices, and are clearly communicated up front. Asking for additional discounts for inane reasons like the "promise of more business" is not only ineffective and insulting, it is also as transparent as glass, and will mark you as a beginner and inexperienced negotiator.
Unlike your grandfather's day, business today is fast-paced, and emphasizes business skills such as ROI analysis, buy/build analysis, and other algorithms that rely more in mathematical and analytical skills than on ham-fisted, unprofessional manipulation.
Be clear with your requirements, respect the other party, and communicate in a timely manner... 1 day for email, 1 hour for texts. Nothing else is acceptable. And no, you're NOT "busier" than the person you're communicating with, and no, you're not impressing them with how important you are when you fail to exercise the common courtesy of timely communication. Instead, you are showing them how unprofessional you are, and that they should probably ignore you and move on.
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