Evoking the Competition

One of your advantages as a buyer in negotiations is that most of the time you have options on where to buy what you want. If one vendor doesn’t accept your price offer, you can try offering to another. If one supplier can’t provide the terms you need, you can look around for another who can.

Competition, in this respect, is good for buyers. It creates options, and having options improves your negotiating position. Your ability to evoke the competition skillfully in your negotiations, therefore, can give you the power and confidence you need for more successful outcomes.

The more competition you can generate for what you possess, the more valuable it becomes. As a buyer, what you possess is money. And vendors know that if you walk away from negotiations with them, someone else is going to get your money.

Sometimes the mere mention of competition is enough to get you a concession. Imagine, for example, that you’re with a real estate agent viewing office space that you want to occupy. It’s just what you need and the rent is already low. Still, you say to your agent, “Well, it’s okay. But, to be honest, I’m looking at another place that’s equally good.” At this point, your agent may do what she must to make her offer better.

If getting the price down is your specific objective, bring it into the competition. For example, “This other place I’m viewing is 300 cheaper than this one. If you can knock 350 off the rental for this place, I’d be more likely to consider it.”

Savvy negotiators realize, however, that evoking the competition can often be a bluff. That’s why it’s useful for you to substantiate the competition you bring into your negotiation. Saying you can get a better price is one thing. Producing a price quote on paper from the competition and putting it on the table is another thing altogether.

Some of the most effective negotiating tactics are the most simple to deploy. In a world where the customer is king, evoking the competition is an easy way to get the concessions you’re looking for.