Negotiation Techniques:
How to Use "Fair" as a Labelling tactic in Negotiations.
"Fairness" is one of the most powerful yet nuanced tools you can use in a negotiation. By labelling your proposal as “fair” or the other party’s as “unfair,” you tap into deep-rooted psychological and emotional responses that encourage cooperation, compromise, and resolution.
Understanding the power and limitations of this tactic can help you build trust and foster more productive negotiations.
The Psychological Weight of the Word “Fair”
The word “fair” holds significant psychological and emotional weight, particularly in cultures where fairness is a core value. From childhood, many are conditioned to understand fairness as an essential social principle, influencing how they perceive justice, equity, and balance in interactions. This conditioning shapes people’s responses to fairness in adulthood, especially in high-stakes situations like negotiations.
In English-speaking cultures, the concept of fairness is intertwined with moral and ethical conduct. A “fair” offer, decision, or process is seen as balanced and just, making it harder to reject without appearing unreasonable. In negotiations, labelling a position as “fair” can exploit this perception to nudge the other party toward agreement, while labelling something “unfair” can trigger a defensive response and force reevaluation .
Using “Fair” and “Unfair” as a Negotiation Tool
Example 1: Labelling a Proposal as Fair
Consider this scenario: A negotiator says, “This is a fair offer based on the industry standard and the benefits we’ve outlined.” By framing the offer as “fair,” the negotiator encourages the other party to agree, leveraging the instinctive human desire to maintain a fair reputation. The tactic pressures the counterpart to either accept the offer or risk appearing unreasonable or unfair themselves.
Example 2: Labelling an Offer as Unfair
On the flip side, labelling an offer as “unfair” can compel the other party to revise their stance. For instance, “Your proposal feels unfair considering the risks on our side” creates immediate pressure for the other party to reconsider and make adjustments to avoid appearing exploitative. This technique can create a psychological discomfort with being perceived as unjust, encouraging concessions .
Example 3: Applying Fairness to Concessions
Additionally, labelling concessions as fair can signal goodwill and balance. For example, a negotiator could state, “We believe we’ve made a fair concession by extending the payment terms.” This frames the concession as a generous move, prompting the other party to reciprocate or close the deal more favourably.
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.
Cultural and Linguistic Limitations of “Fair”
The effectiveness of invoking fairness, however, is not universal. In cross-cultural negotiations, the word “fair” may not carry the same weight it does in English-speaking contexts. Non-native English speakers may not attach the same emotional resonance to the word, which can diminish its power in negotiation.
For example, while the word “fair” resonates strongly with native English speakers, its Italian counterpart, “giusto,” might not evoke the same depth of emotion. Even if an Italian negotiator is fluent in English, the term may not carry the same emotional connotation, making the fairness tactic less impactful . In such cases, relying on more objective measures of fairness (such as industry standards or market data) may be more effective than merely using the word itself.
When “Fair” Backfires: Overuse and Extremes
Overusing the fairness label or applying it to extreme positions can backfire. For instance, labelling an ambitious or one-sided offer as “fair” can undermine your credibility and damage trust. This can lead the other party to see you as manipulative or insincere, potentially derailing the negotiation.
For example, a seller might say, “We believe this is a fair price,” even when the offer is far above market value. In this case, the buyer is likely to see the tactic as disingenuous and may disengage or push back harder, damaging the rapport between the parties.
To avoid this, it’s essential to ensure that your fairness claims are aligned with reasonable and balanced positions.
Practicing Fairness: The Strategic Use of Labelling
Given the potential pitfalls and advantages of using fairness in negotiation, it’s essential to practice the tactic carefully. Consider these approaches:
- Label the First Position as Fair: Starting a negotiation by labelling your initial offer as fair sets the tone for collaboration. It positions you as a reasonable negotiator from the outset.
- Label the Last Position as Fair: Closing a negotiation with a fairness label encourages the other party to agree on the final terms. By framing the last offer as fair, you help the other party feel comfortable finalising the deal.
- Avoid Extreme Positions: Labelling extreme or one-sided positions as fair can backfire. Instead, focus on balanced proposals that both sides can reasonably agree to.
Understanding the Power of Fairness in Negotiation
The concept of fairness is a powerful negotiation tool, but it must be used thoughtfully. When applied correctly, fairness can foster trust, encourage cooperation, and lead to more favourable outcomes.
However, its effectiveness can vary depending on cultural and linguistic context, and overusing or misapplying the fairness label can undermine credibility.
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 significance of using the terms "fair" and "unfair" in negotiations?
Can you give an example of how to label a proposal as "fair"?
How can I use "unfair" to encourage a revised offer?
How can I use "fairness" when making concessions?
Are there cultural limitations to using "fair" and "unfair"?
What happens if I overuse or misuse "fair" and "unfair"?
Can you provide tips for effectively using "fair" in negotiations?
How does anchoring work with the concept of "fairness"?
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.