Auctions aren’t just for eBay and Sotheby’s anymore. An auction doesn’t require a barker or online presence either. An auction can be held by a buyer or a seller. The primary characteristic is a one-to-many relationship. Auctions are always one-off transactions where price is usually the only factor and at the very least the dominant driver of the deal. The hallmark of an auction is utilizing game plan theory to take advantage of competitive behavior to maximize value without respect to the other party.
The perfect opportunity to hold your own auction is the very next time you are shopping for a new car. Think about it, it’s a commodity, and price is the primary concern. You flip the script on the dealers and make them compete for your business. Don’t believe the hype of these online sites that claim to provide this service for you, you are better off running the auction yourself. 3rd parties have ulterior motives, just remember who is paying their bills. Here’s a link to the process of setting up an auction to buy a new car. BUYING A NEW CAR
EXTERNAL CHARACTERISTICS: An auction exists when there is a one-to-many situation for either the buyer or the seller. Price is the primary objective and many times the only variable. This type of transaction is strictly a one–off and any future transactions are not predicated or dependent upon the terms of this transaction. There may be subsequent deals, however, each one will be unrelated and negotiated separately. The focus of an auction is solely on short-term gain without consideration for the other party’s financial situation.
BEHAVIORAL ELEMENTS: During an auction there is no need to develop trust, the focus is purely short-term gain. Satisfaction is received through opening positions and subsequent moves. If you are holding the auction you can afford to use as much power as possible without creating an emotional response from the other party (school yard bully). You can afford to demonstrate your power through arrogance, intransigence, and obstinance.
STRATEGY: Maximizing value during an auction is all about TAKE. Power comes from your ability to say “No”. Deadlines and time pressure are often utilized to escalate pressure as an attempt to force the issue. The following skills are used as described:
OPENING – Open as extreme as you dare to manage and shift the other party’s expectations. Be careful, to make your opening offer within reason. Too extreme will often illicit an emotional response crossing the other parties “Piss Off” point.
MOVEMENT – Plan a series of moves in ever decreasing sizes. With an auction you can have many moves before you lose credibility.
RESPONSES – Your primary response is “No”, rejecting proposals, limited information sharing, visual flinches, etc. Your proposals are stated as unilateral demands.
POSITIONING – Utilize power statements and assumptions to unsettle the other party and unlock information.
QUESTIONING – Your questions are directed at identifying desperation levels within the other party. Try to determine if there are extenuating circumstances increasing their level of need. Your questions are designed to test their breakpoints. Pay particular attention to the contradiction between what is said and behaviors, as lying is often more prevalent early in The Negotiation Wheel.
NVC ALIGNMENT – Again, everything is about “No”. Make sure your body language is overt and present. Even when you are about to say yes, say no first, especially with your body to build additional satisfaction.
ANCHORING – You will continually anchor the discussions around your price and your issues.
LEVERAGE – You want to utilize any ancillary issues (volume, form of payment, etc.) to secure the best price possible.
POWER – Use actual and perceived power to TAKE.