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Do you embarrass yourself with these trading mistakes?

In my negotiating interview with Camp Group CEO Jim Camp, he pointed out that there is a difference between tactics and principles.

As an Air Force pilot, he was taught that principle will always beat tactics. So it is very important to take a look at the difference between a tactic and a principle.

A tactic is something that is designed to take advantage of an opponent’s weakness.

A principle is something that never changes and is consistent.

I will illustrate this with an example of the negotiation for the purchase of a new car. We will see the tactic of using reciprocity and blame against the principle of honesty.

We’ve all seen it on TV and in the movies and it’s probably happened to all of us at some point: Good Guy Bad Guy. This classic trading tactic is still widely taught and applied.

At the car dealership, it’s like this: You’ve decided on the make and model of car you want, and now you’re negotiating the price. The salesperson excuses himself to go talk to the sales manager about the price you’ve requested. He comes back and says that he really fought for you and that he was only able to get the sales manager to accept a small discount.

So again he says he will go for you and go over the top of the sales manager and talk to the general manager, even though this is putting his job at risk he really wants to help.

Perhaps someone who is young and going through their first negotiation might fall for this classic tactic. But anyone who has been through a few negotiations or has studied negotiation will immediately see this tactic for what it is.

This is where the confrontation between tactics and principle takes place. The principle here is that of honesty. Honesty is valued by people and necessary to conduct proper business. Regardless of how well the seller executes the good guy, bad guy tactic, if there is even a hint of dishonesty about it, the plan will implode and the buyer will lose trust and respect for the seller.

Yes, you can still buy the vehicle if the price is right for you, but we can be sure that you will not refer this seller and that the selling career will be short-lived.

Never try to use a tactic that will compete with a principle. Any time you try to implement a negotiation tactic, think it through and make sure it’s backed by the right principles.

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