Negotiation Techniques:
How a "False Choice" Impacts your Negotiation.
A “false choice” (or “false dilemma”) is a negotiation tactic where one party presents limited or constrained options, implying that these are the only available choices. This tactic seeks to create a sense of urgency or pressure, steering the other party toward making a decision that favours the proposer, when in fact, alternative options or solutions might exist.
It is a strategic way to nudge the opposing party into making concessions or agreeing to terms that benefit the user of the tactic.
How and When A False Choice Is Used
How It Is Used:
The false choice tactic usually works by framing the options in a binary or limited manner. For example:
- “You can either take the offer as it is, or we will walk away.”
- “Your choice is to accept this now, or lose the deal entirely.”
In these examples, the negotiator is attempting to make the other party believe they have only two (or a limited number of) options, none of which may be entirely appealing. The key here is that the reality often offers more choices or flexibility than what’s presented.
When It Is Used:
False choices are most commonly used when:
1. The negotiator wants to exert control over the direction of the conversation.
2. Time pressure is used as leverage to force quick decision-making.
3. A power imbalance exists, where one party feels they have more leverage and can dominate the outcome.
4. Closing tactics to push toward the end of a negotiation, applying psychological pressure to finalise the deal.
In these situations, negotiators attempt to corner the other party into choosing an option they wouldn’t normally favour if they were aware of all possible alternatives.
FUN FACT: Did you know this negotiation tactic was a favourite of Tyrion Lannister (Game of Thrones)
How to Practice...
- Select Your Buyer Card or Seller Card with variables that match your desired challenge level.
- Assign an Observer who knows the tactic you are practicing.
- Time your negotiation for 4–6 minutes.
- Practice using the tactic at the right moments during the session.
- Observer provides feedback on when and how the tactic was used as well the overall impact on the negotiation.
- Reflect by spending 3–5 minutes discussing how the tactic influenced the negotiation.
- Repeat so everyone gets a chance to practice the tactic, observe, and negotiate.
Benefits of the False Choice Negotiation Tactic
1. Creates Urgency:
The sense of limited options can speed up decision-making and create a sense of urgency, especially if the other party is feeling time pressure or is inexperienced in negotiations.
2. Limits Room for Objection:
By narrowing the choices, the other party has fewer angles to argue from, potentially cutting down on lengthy deliberations.
3. Shifts Control:
It allows the negotiator to steer the conversation and appear in control of the situation, dictating the terms of the negotiation.
4. Reduces Complexity:
Presenting limited choices can simplify complex discussions, making it easier for the other party to commit, albeit not necessarily in their best interest.
Drawbacks of the False Choice Negotiation Tactic
1. Can Lead to Mistrust:
If the other party realises that they’ve been manipulated with a false choice, it can erode trust, damaging relationships in both short-term and long-term negotiations.
2. Reduces Creativity:
By limiting options, both parties miss out on potential creative solutions or win-win scenarios that could provide better outcomes for both sides.
3. Not Always Effective:
Seasoned negotiators or those familiar with this tactic will see through the false choices and either reject them or push for more options. This can backfire, making the proposer appear manipulative or inflexible.
4. Risk of Escalation:
If the other party feels pressured and does not like the options presented, they might react negatively by escalating their demands or walking away from the table entirely.
Where the False Choice Tactic is More Common
1. Retail and Consumer Negotiations:
Salespeople often use false choices in retail negotiations, where they offer discounts or package deals but frame them as “this or nothing.” For example, “You can buy this TV now with a discount or lose the discount entirely.”
2. High-Pressure Sales Environments:
Environments such as car dealerships or real estate negotiations often feature false choices to push buyers into making quick decisions.
3. Corporate and B2B Sales:
In some competitive business negotiations, suppliers or contractors may present limited options to gain concessions or control over terms.
4. Job Offers:
Employers might use false choices during salary negotiations by presenting offers as “take it or leave it,” implying no further room for negotiation.
How to Guard Against False Choice Tactics
1. Recognise the Tactic:
Being aware of when false choices are being presented is the first step in guarding against it. If the options feel artificially constrained or too simplistic, you are likely facing a false dilemma.
2. Ask Questions:
Probe the other party with questions that force them to open up more options. For example:
- “Is this really the only option available, or is there room for flexibility?”
- “What if we considered another approach?”
3. Expand the Range of Alternatives:
By doing research and understanding your alternatives before the negotiation, you can counter false choices by suggesting other options that suit your needs better.
4. Don’t Rush:
False choices are often framed to create urgency. Take your time, review the proposal, and make sure you fully understand all potential options before committing.
5. Reframe the Discussion:
A powerful counter-tactic is to reframe the conversation by introducing new variables or asking the other party to reconsider their options. Shifting the negotiation back to a collaborative approach can neutralise the pressure.
6. Leverage BATNA (Best Alternative to a Negotiated Agreement):
If you know your alternatives, you won’t feel cornered by a false choice. Your BATNA provides you with the confidence to walk away if the options presented are not in your favour.
Conclusion
The 'False Choice' is a common tactic in negotiation that relies on presenting artificially limited options to the other party. While it can be effective in certain circumstances, especially in situations where there’s a power imbalance or time pressure, it can also erode trust and stifle creativity. To guard against it, negotiators must remain vigilant, ask probing questions, and be prepared to reframe the conversation or introduce alternatives that open up the range of possibilities.
Being able to spot and counter false choices allows negotiators to maintain control and achieve more favourable outcomes.
Check Your Knowledge
If you can answer each question, you're already halfway to success!
The next step is simple: just PRACTICE.
What is the False Choice tactic?
How does the False Choice tactic work in practice?
When is the False Choice tactic commonly used?
What are the benefits of using the False Choice tactic?
What are the drawbacks of using the False Choice tactic?
Where is the False Choice tactic commonly used?
How can I recognise if someone is using the False Choice tactic on me?
How can I counter the False Choice tactic?
Is the False Choice tactic always unethical?
How can I use the False Choice tactic ethically?
Importance of Practicing at The Negotiation Club
Understanding the challenge of any negotiation tactic or technique is just the first step. Like any negotiation skills, their effective application requires practice. This is where negotiation clubs or practice groups can be invaluable so JOIN OUR CLUB TODAY (30 Day FREE Trial) :
1. Developing Intuition:
Repeated practice helps you develop a natural feel for when and how to build relationships, making it second nature.
2. Building Confidence:
Practicing in a safe environment boosts your confidence to employ these techniques in real-world situations.
3. Receiving Feedback:
Constructive feedback from peers and trainers helps refine your approach, ensuring you can build relationships effectively without compromising your negotiation goals.
4. Adapting to Situations:
Practice allows you to adapt your techniques to different scenarios and personalities, enhancing your flexibility and effectiveness.
Club Members Feedback Assessment:
During the club meeting a formal "Feedback Assessment Script" helps identify within the zoom transcript the feedback. We can then use this with our AI to summarise the feedback helping to keep a record of the club members progress.
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Introduction Script:
"My name is [Your Name] and I am giving feedback to [Feedback Recipient] following their negotiation with [Opposing Negotiator] dated [Date]."
"[Feedback Recipient] had a specific tactic of [Tactic/Technique] to practice during this negotiation."
Feedback Script:
"My feedback is as follows... [Give Feedback]"
Closing Script:
"Based on my assessment I believe [Feedback Recipient] has achieved a [Level 1/2/3] for this Tactic"
"That concludes my feedback assessment for [Feedback Recipient] dated [Date]."
Each participant will be assessed on their ability to incorporate the designated tactic. Observers should use the following levels as a guideline:
Level 1
The participant recognises the tactic and attempts to apply it, though inconsistently.
Level 2
The participant integrates the tactic effectively into the negotiation, contributing to the discussion.
Level 3
The participant uses the tactic skilfully, influencing the negotiation outcome or advancing their position meaningfully.