Negotiation Tactics: Defer to Higher Authority

This charade has been done to death in the car business. You make an offer to the salesman, and he says, “OK. I’ll take it to my manager.” The manager is the higher authority. It’s the good cop, bad cop scenario.

The salesman’s role is the good cop. He wants to find out what you like and see how emotionally attached you or your spouse are to the car. He will take that information back to the manager, the bad cop.

You can be sure the salesman is not saying, “They are a nice couple, and this is a fair price offer.” What he and the manager are doing is figuring out how to get the highest price possible. The salesman comes back with a smile and a counteroffer.

When you are negotiating a lease, be the good cop. Tell the seller you have to run everything by your people or your association. This gives you time to figure out your next move and keeps any emotional attachment out of the game.

It also works to remind the salesperson that you are not the final decision-maker and that the deal could get shot down at any moment by the association or your business partners.

How to Implement the Tactic:

  1. Establish Authority: Before entering negotiations, make it clear that you will need to consult with your higher authority, whether it's a board, association, or business partner.

  2. Gather Information: During the negotiation, act as the good cop. Gather as much information as possible about the seller’s position and what they’re willing to offer.

  3. Create a Buffer: Use the higher authority as a buffer to give yourself time to consider offers without feeling pressured to make an immediate decision.

  4. Communicate Carefully: When relaying information back to the seller, frame it in a way that shows you are on their side but need to ensure everything is acceptable to the higher authority.

  5. Stay Non-committal: Maintain a non-committal stance during negotiations to avoid being pressured into a decision. Use phrases like, “I need to discuss this with my team,” or “I’ll have to get approval from the board.”

By using the defer to higher authority tactic, you can effectively manage the negotiation process, reduce emotional pressure, and ensure you make well-considered decisions that benefit your business.