Episode #156: Success Negotiating - Part Two
Success Negotiations for Business in Tokyo — Dale Carnegie Training
Why do negotiation outcomes matter so much in B2B relationships in Japan (日本企業 — “Japanese companies”) and global firms (外資系企業 — “multinational/foreign-affiliated companies”)?
In B2B negotiations, the goal isn’t to “win” with clever tricks—it’s to reach agreements that protect your value and build long-term trust. This is especially true in Japan, where relationships, internal consensus, and careful preparation often shape the deal as much as the bargaining itself.
To negotiate effectively, you need to prepare before you enter the room: clarify your position, predict the client’s position, and decide what outcomes are ideal, realistic, and unacceptable.
Mini-summary: Strong B2B negotiation in Tokyo (東京 — “Tokyo”) starts with disciplined preparation that supports relationships, not just transactions.
What must we define before we start negotiating?
Before “negotiating” begins, you should determine both sides’ positions clearly:
-
What is negotiable vs. non-negotiable?
-
What is our ideal outcome?
-
What is our realistic outcome?
-
What is our fallback position if discussions fail?
Then mirror the same thinking from the client’s perspective:
-
What do they see as ideal?
-
What do they see as realistic?
-
What is their likely fallback position?
This dual-lens preparation prevents surprises and helps you steer toward workable agreements.
Mini-summary: Define your own and the client’s ideal, realistic, and fallback positions before the first offer is even made.
How do we protect ourselves if the client becomes unreasonable? (The Walk-Away Option / BATNA)
Establish your BATNA (Best Alternative To A Negotiated Agreement). That’s your clear “walk-away point”—the moment where continuing the deal harms you more than leaving it.
Set this limit in advance so you don’t negotiate emotionally or drift into concessions you’ll regret.
Mini-summary: Your BATNA is your safety line—decide it early so you negotiate with confidence.
How can silence become a negotiation advantage in Japan?
Silence creates psychological pressure. Many people rush to fill quiet moments by offering concessions or extra information.
In Japan, silence is more culturally comfortable than in many Western settings. Western negotiators often feel uneasy and start talking too soon. If you resist that urge and sit calmly, the other side may speak first—or soften their stance.
Mini-summary: Use silence patiently, especially with Japanese counterparts, to avoid unnecessary concessions.
What does “authority to negotiate” really mean in Japanese corporate settings?
Sometimes you may say: “I need to confirm with higher authority.” This tactic buys time and reduces tension if negotiations get heated.
In many Japanese companies, key decision makers may not be in the room. Approvals often require internal alignment and formal sign-off such as a hanko (判子 — “official company seal”), meaning your counterpart may need time to coordinate internally.
Mini-summary: Referencing higher authority can cool negotiations and fits the consensus-driven reality of many Japanese firms.
When should we use an ultimatum—and how do we avoid damaging trust?
An ultimatum is a “deal/no-deal” boundary similar to walking away. Even near agreement, a few conditions may remain non-flexible.
The key is to identify deal-breakers early and prepare alternative paths that remove barriers to a “yes.”
Mini-summary: Ultimatums should be rare, planned in advance, and paired with alternatives that keep the relationship intact.
How can persuasion help close the gap without giving away value?
Persuasion often means adding perceived value, not lowering price. Offer something inexpensive to you but meaningful to them—an extra service, support, or customization.
Plan these “sweeteners” ahead of time so you can introduce them strategically when the negotiation needs momentum.
Mini-summary: Persuasion works best through prepared value-adds that feel significant to the client.
How does time pressure shape decisions?
Time pressure works when you shorten the decision window on purpose. The “opportunity goes away” effect increases focus and urgency.
Because markets usually involve multiple buyers and sellers, delay often means losing the chance to close.
Mini-summary: Controlled deadlines push decisions forward—but only if they’re credible.
Why would a negotiator delay or go inactive?
Delay is “time pressure in reverse.” By slowing responses and stretching timelines, you may trigger urgency on the other side—especially if they’re under hidden internal pressure.
Like silence, delay creates space where the other party may move first.
Mini-summary: Strategic delay can reveal pressure points and prompt faster client action.
What are add-ons, and why do they work at the end?
Add-ons are small, extra concessions offered in the final stage to secure agreement. Research indicates that most concessions happen late in negotiations, when the decision is nearly made.
At that point, clients often prefer adding one more condition rather than restarting internal approvals from scratch.
Mini-summary: Add-ons help close deals because late-stage agreement feels easier than reopening the full process.
Key Takeaways
-
Prepare from both viewpoints: your ideal/realistic/fallback outcomes and theirs.
-
Define your BATNA early so you negotiate with calm limits.
-
Use silence and delay wisely—especially in Japan, where timing and restraint carry power.
-
Close with value-adds and smart add-ons that protect long-term relationships.
About Dale Carnegie Tokyo
Founded in the U.S. in 1912, Dale Carnegie Training has supported individuals and companies worldwide for over a century in leadership, sales, presentation, executive coaching, and DEI. Our Tokyo office, established in 1963, has been empowering both Japanese and multinational corporate clients ever since.