Negotiation Techniques:
How the "If You, Then we" Approach Works In Negotiations.
The “If you… then we…” technique is at the heart of problem-solving in negotiations. It represents the foundation of movement and collaboration, enabling negotiators to make meaningful progress while ensuring reciprocity.
This structured approach ensures that every concession or adjustment has a reason and generates value for both parties.
Defining the "If You... Then We" Technique
The “If You… Then We…” model operates as a trade-off mechanism. It involves presenting a condition (“If you…”) and an offer (“Then we…”), thereby encouraging the other party to act in a way that meets both their interests and yours. This approach facilitates decision-making by providing clarity on what is required to achieve an agreement.
For example:
- Scenario: You are negotiating with a supplier on pricing and delivery timelines.
- Offer: “If you agree to a delivery timeline of 4 weeks, then we can offer you a 5% discount.”
This statement is a clear trade-off that:
- Specifies the condition required (delivery timeline).
- Communicates the benefit (discount) tied to fulfilling that condition.
Why Is The "If You... Then We..." Technique Significant?
The “If You… Then We…” approach holds immense significance in negotiations because it helps to:
Maintain Balance and Fairness:
- It avoids giving concessions unilaterally, ensuring that each movement is accompanied by reciprocal value. This creates a perception of fairness and equality in the negotiation, which is crucial for building trust and long-term relationships.
Encourage Movement:
- Negotiations often stall when parties hesitate to take the first step. The conditional nature of this technique creates a structured pathway for both sides to progress without fear of giving too much away.
Strengthen Decision-Making:
- The clarity of the conditional offer simplifies complex discussions, helping both parties evaluate options more effectively.
Enhance Credibility:
- By making specific and actionable offers, you demonstrate preparation, thoughtfulness, and a commitment to finding a mutually beneficial solution.
Fostering Collaboration Through Conditional Offers
The “If You… Then We…” technique inherently promotes collaboration. It reframes negotiations from being adversarial (where one side “wins” and the other “loses”) to a joint problem-solving exercise. By explicitly tying your concessions to theirs, you encourage a mindset of give-and-take.
Linking Actions to Outcomes:
By clearly specifying what you need and what you are willing to offer in return, this technique eliminates ambiguity. For example:
- Vague Concession: “We’ll consider giving you a discount.”
- Clear Conditional Offer: “If you can confirm the order today, then we’ll provide a 10% discount.”
- Building Trust:
The explicit connection between actions and outcomes makes it easier for the other party to trust your intentions. They see that their concessions will be met with fair reciprocation. - Empowering Both Parties:
This technique shifts the focus from rigid positions (e.g., “I need a discount!”) to flexible problem-solving. Both sides feel empowered to explore creative trade-offs that align with their goals.
How to Identify Variables for the “If You… Then We…” Model
1. Ask the Right Questions
Emphasise the importance of asking open-ended questions to uncover the variables at play.
Examples of questions to ask:
- “What is most important to you in this agreement?”
- “Are there areas where flexibility is possible?”
- “How do you see us reaching a middle ground?”
Link the discovery of variables to creating effective “If you… then we…” proposals.
2. Mapping the Variables
Explain how to categorise variables:
- Tangible: Price, timelines, volumes, payment terms.
- Intangible: Trust, long-term partnerships, reputation, and quality.
Encourage negotiators to anticipate variables on both sides before the discussion.
3. Prioritise and Sequence
Learn to rank the importance of variables and structure offers based on high-priority needs.
Use examples of layered “If you… then we…” statements to build momentum.
Example:
“If you increase your order to 1,000 units, then we can discuss an extended credit period, and if you commit to a 2-year partnership, we can reduce our rates further.”
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.
The BIG Issue: Placing the Concession First
One major mistake in using the “If You… Then We…” technique is stating the concession first and the condition last. This sequencing may seem minor, but it has significant implications for the negotiation’s outcome and effectiveness. Here’s why the order matters:
1. Risk of Giving Without Receiving
When the concession is stated first, you may inadvertently weaken your position. For example:
- Concession First: “We’ll give you a 10% discount if you agree to a faster delivery timeline.”
- Condition First: “If you agree to a faster delivery timeline, we’ll give you a 10% discount.”
In the first example, the focus is immediately placed on the concession, which can give the impression that you’re leading with a giveaway. This opens the door for the other party to potentially ignore or reject your condition, leaving you without any reciprocal benefit. By leading with the condition, you frame the conversation around their responsibility first, ensuring that any movement on your part is clearly linked to their action.
2. Human Psychology: Focus on the Last Thing Heard
People tend to focus on the last thing they hear in a conversation. This means that:
- When the condition comes last, attention is directed toward your “ask,” increasing the likelihood of debate or resistance over the terms you’re proposing.
- Conversely, when the concession comes last, attention shifts to the benefit they will receive, creating a positive impression and making it more likely they’ll consider fulfilling the condition to gain the concession.
3. Maintaining Control of the Narrative
By stating the condition first, you:
- Retain control of the negotiation dynamic, ensuring the conversation revolves around what you need before discussing what you’re willing to offer.
- Create eagerness or curiosity in the other party to learn about the potential benefits they will gain by meeting your condition, keeping the conversation constructive and forward-focused.
Practical Example
Let’s consider two ways to phrase the same proposal:
- Concession First: “We’ll offer you extended payment terms if you commit to ordering 1,000 units.”
- Condition First: “If you commit to ordering 1,000 units, we’ll offer you extended payment terms.”
In the first phrasing, the conversation is likely to focus on the extended payment terms, potentially turning into a discussion about why they should get those terms without meeting your condition. In the second phrasing, the focus remains on the commitment you need (ordering 1,000 units), with the extended payment terms serving as the reward for that commitment.
The Takeaway
To maximise the effectiveness of the “If You… Then We…” technique, always state the condition first and the concession second. This sequencing:
- Ensures your movement is tied to a clear benefit for you.
- Aligns with psychological principles to keep the focus on the value you’re offering.
- Helps you maintain control of the negotiation, framing the discussion around their actions rather than your concessions.
By structuring your proposals this way, you increase the likelihood of achieving a collaborative and balanced outcome.
Examples of Effective Use of the "If You... Then We"
Example 1: B2B Sales Negotiation
- Scenario: You are negotiating with a customer on bulk pricing for a product.
- Offer: “If you increase your order quantity to 1,000 units, then we can reduce the unit price by 15%.”
Example 2: Supplier Agreement
- Scenario: Negotiating with a supplier about delivery timelines.
- Offer: “If you can reduce the lead time to 2 weeks, then we can agree to your proposed pricing.”
Example 3: Employment Negotiation
- Scenario: Discussing terms for a new role.
- Offer: “If you can offer a hybrid work schedule, then I am happy to consider the proposed salary package.”
Common Mistakes and How to Avoid Them
1. Moving Without a Clear Reason
- Mistake: Making a concession without tying it to a specific ask.
- Example: Offering a discount without securing something in return
- Solution: Ensure every movement includes a trade-off.
Correct Approach:
“If you commit to a two-year agreement, then we can offer a 10% discount.”
2. Failing to Establish Value
- Mistake: Focusing solely on price or one variable while ignoring other possible trade-offs.
- Solution: Broaden the scope of negotiation variables and reinforce the value behind the trade-offs.
Example:
“If you reduce the delivery timeline to 2 weeks, then we can include free installation, which adds value to your business.”
3. Using Rigid Language
- Mistake: Phrasing the “If you… then we…” model as an ultimatum rather than a collaborative offer.
- Solution: Frame the statement as a collaborative proposition rather than a demand.
Collaborative Wording: “If we can agree on a payment term of 30 days, then we can prioritise your order for earlier delivery.”
4. Overlooking Emotional Factors
- Mistake: Ignoring the emotional dynamics of negotiation and presenting the model in a transactional tone.
- Solution: Build rapport and align the proposal with the counterpart’s interests.
Example:
“I understand how important delivery speed is for your business. If we can finalise the agreement today, then we can prioritise your shipment for next week.”
Check Your Knowledge
If you can answer each question, you're already halfway to success!
The next step is simple: just PRACTICE.
What exactly is the "If You... Then We..." negotiation technique?
Why is the "If You... Then We..." technique important in negotiations?
How do you identify the right variables for "If You... Then We..." statements?
What is the best way to structure "If You... Then We..." offers?
Why is the order of "If You..." and "Then We..." important?
How can I make my "If You... Then We..." statements more collaborative?
How can the "If You... Then We..." approach help with building trust?
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.
——
Script:
- State your name.
- State the name of the negotiator you were observing.
- State the Technique being practiced and what you were specifically looking for.
- Explain what you observed and your specific feedback.
- Finally include a proposed "Level of Achievement" (Level 1, 2 or 3)
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.