Improve Your Negotiations With The 5 Golden Rules.   LEARN THEM

Walgreens had been negotiating a new prescription pricing deal with Express Scripts, Inc. but recently announced the negotiation had failed and it would be ending its relationship with Express Scripts at year end.  Interestingly, Walgreens participated in a similar negotiation with CVS Caremark last year which was eventually resolved despite the fact that Walgreens made a similar announcement.

This example illustrates the importance of researching your negotiation counterpart’s reputation and past tactics.  Robert Cialdini’s Consistency Principle tells us that most people have a strong tendency to act in a consistent manner.  As a result, if your counterpart successfully used a tactic in the past, it is likely they will use it again.  Here, CVS Caremark must analyze Walgreen’s announcement to determine if it is a bluff or a true signal the negotiation is over.  Knowing Walgreens made a similar announcement a year ago but still reached a deal should be an important part of that consideration.

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