The Elements of Negotiation

ELEMENT 38Understanding and Navigating Salami Negotiations

A salami negotiation is a tactic whereby a party incrementally requests concessions, often beginning with minor issues before progressing to more significant demands. Think about a salami that is being sliced. This approach can gradually erode the other party's position without them realizing the full extent of the concessions being made until it's too late.

The Anatomy of Salami Negotiations

In a typical salami negotiation, the opposing party starts by addressing a seemingly minor issue. For example, they might seek to reduce transport costs, arguing that competitors offer free shipping. They may present this as their only demand, making it appear reasonable and easy for the seller to agree, especially if the cost impact is minimal.

Once this concession is made, the buyer progresses to another term, such as payment conditions. Here, the seller's costs are higher, but again, capitulating may seem the easiest path, particularly when the buyer cites competitive practices as justification. The seller, hoping to secure the deal, may acquiesce.

However, this is rarely the end. The buyer continues to push for more, ultimately demanding significant price reductions. Even if the seller's profits are squeezed to the minimum, the buyer may add yet another request, like a year of free service. By asserting that this will be their final demand, the buyer pressures the seller into yet another concession.

The seller, having made ...