A common example of lack of clarity occurs when one party intentionally makes an unrealistic opening offer. Early in the negotiation, one person throws out an outrageous opening offer although it is intended as a trial balloon, it is presented as though it were a reasonable offer or worse, as something for which there is very little negotiating room. If the offer doesn’t get the expected reaction (shock, disbelief, laughter, and ultimately bursting of the balloon), the person who made the offer often recounts, with great animation, that the other person “didn’t even bat an eye.”
Too much is made of the fact that a counterpart doesn’t faint when an unrealistic number is offered. What you don’t hear about so often is the follow-up. As I was writing this book, I purposely followed up every time I heard such a story. I tracked the negotiations to see the results. I was not totally surprised to discover that — in a majority of the cases — the deals fell through. In all but one case, the reason was an excuse other than the initial high demand, such as scheduling conflicts, changing concepts, and postponements. This little study of mine was not scientific in any way, but it provided interesting support for my theory. When you start with an opening offer or a demand that is well outside the reasonable range, the other side will often slink away rather than get involved in a futile negotiation.
It would be difficult to ascertain what percentage of negotiations never get underway because the initial demand was too high. I believe that it happens more often than most people suspect. The person who is turned off may never say a word to the party making the demand. Think of your own behavior. If you think the prices in a boutique are outrageous, do you say so? Or do you smile at the shopkeeper and say, “Just looking”?
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