Escalation is a dirty trick played when one party has leverage or when there is still money on the table. Essentially, escalation happens when a deal is almost done and one of the parties reopens the negotiation with a demand for one more concession.
This can be the behavior of an aggressive negotiator. Never satisfied and sensing that the other party is weak or vulnerable, the aggressive negotiator asks for more. The weaker party often concedes since they don’t want to lose the deal. This is just what the aggressive negotiator is counting on.
Sometimes money is left on the table. Essentially, a mistake was made and one of the parties realizes the error. In this case, it is may be reasonable to reopen the negotiation and risk the deal. They may feel that they have no choice but to attempt to fix the deal or start over. I have been there myself and I can blame it on a lack of preparation on my part. It takes some guts to say that you blew it; sometimes admitting your error may be enough to gracefully reopen the negotiation without offending the other party. The other party could get angry and walk on the deal. This is a risk that you will take if you attempt to fix or restart the agreement.
Here are a few ways to combat this tactic when it is an aggressive tactic by the other party:
1. The devil is in the details. Make sure that you have addressed all of the concerns and issues relating to the deal. Veteran sales people will tell you that all objections must be addressed before a deal can be made. The risk is, that if you don’t address them during the negotiation, they will come back and bite you later.
2. When confronted with an escalation, you can suggest that it is out of your hands and that you will have to hand it off to the boss. This may be enough to call their bluff or you may need to bring in the boss. If the other party feels sufficiently empowered, they won’t mind stepping over you to get what they want. They don’t care about you.
3. Alternatively, make them like you. Rapport is powerful and it can be harder to escalate a deal with a friend. Then there are the people that don’t care; in that case, this won’t work.
4. You can fight fire with fire. If they escalate, act like it is a new ballgame. Ask for something in return since they have reopened the negotiation. Fair is fair.
5. Be prepared to walk. You can bluff your way out the door or head to your next best alternative. It is up to you.
John Bradley Jackson
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