Browse by title articles:

When You Can't Afford to Walk Away

by Bernard Zick    

Define Your Limits

What should you do, give up? Maybe. Let's analyze the problem and then we can find a solution. First, plan your negotiation. Decide precisely what you want and what you can afford to give away. You must define a range of benefits, prices and terms, including the minimum that you will accept. That's right. You must draw the line at some point. Accept this fact: there is no such thing as a negotiation you cannot afford to walk away from. If you can't walk away, you are not negotiating.

Though it may seem you must keep a customer, go through with a deal, or agree to a contract at any cost, there's always a point where you will lose if you don't walk away. Factories have closed, customers have gone elsewhere and deals have collapsed when negotiators reached their walk-away point. Not that it is the best solution, but walking away must be one choice. Fortunately, it's not usually necessary.

Don't Give Up

You don't have to agree to an unacceptable offer or walk away, even if the negotiation doesn't look promising. Proper planning can help minimize the effects of an unbalanced (against you) negotiation. You also can strengthen your position during the negotiation. So you don't have to walk away, here are three effective techniques: 1) know the other side's needs and wants; 2) separate issues from personal feelings; 3) keep the momentum of the negotiation going.

Know Their Needs and Wants

Although most negotiations are not evenly balanced, there are always advantages you can offer the other side. Remember, you have benefits they want or need or they would not be negotiating with you. The better you know their real needs or wants, not just the ones they have told you, the more successful you will be. Even a powerful union needs a company or government agency to remain in operation, or there are no jobs, let alone extra benefits, for its members. If one side demands too much or is inflexible, they risk suffering if the other side has alternatives.

A good example is the Professional Air Traffic Controllers Organization (PATCO) strike in the early 1980s. They relied on a rigid position and walked away too early, unaware what the government would do. They lacked alternatives, other than walking away, when the government did not meet their demands. Look what happened. Their "take it or leave it" approach forced many of their members to take other jobs. They never imagined their members would be replaced. Always try to find what choices the other side has, or believe they have.

Have you ever "given away the store" and later found there were no other serious competitors? Often, the buyer or seller needs you more than you think. Just as often, a concession they really need or will value from you won't cost you as much as it benefits them.

For example, closing dates, shipping terms, delivery dates and financing can be very valuable concessions that may be worth many times their cost. If you know the other side must close a deal by a certain date or lose tax benefits, your agreement to close or deliver by that date may be worth thousands of dollars to them, though it doesn't cost you much, if anything. The important point to remember is the value of some benefits far exceeds their cost. But, you can't offer valuable concessions if you dont know if the other side needs them. It's up to you to know.

Separate Issues and Feelings

Untrained negotiators have a tendency to become personally involved in interacting with their negotiating partners. They take each rejection of a proposal or terms as a personal rejection. So, they become angry with the other person or blame them for failing to reach an agreement. Despite how strong the position of the other side appears, disruptive behavior, personal accusations or defamation rarely succeeds. In fact, it's even more important to maintain a cordial personal relationship when you are facing a difficult negotiation. You may be surprised how accommodating people can be if you keep the issues separate from your personal feelings.

Everyone has personality traits that people admire. So, be yourself. Separating negative personal feelings from negotiation issues doesn't mean hiding your personality. Negative reactions to proposed terms may be appropriate and, sometimes, are very effective. Just keep the discussion on a professional level.

Keep the Momentum Going

Never let the negotiation stagnate or delay very long until you have closed the deal. Take breaks or a recess, particularly if you reach an impasse, but don't lose the negotiating momentum. If you have to meet on another day, make it soon. As long as you are still talking and meeting, you build rapport; learn more about what they need and stay in contention as the person or company that closes the deal.

Be patient. Perseverance pays, particularly when dealing with people from cultures that are different from yours. Americans, typically, are impatient and sometimes pay for their haste.

Be a Winner

Instead of giving away more than you need to or walking away, try keeping personal feelings out of the negotiation-focus on issues and solutions. Know what you can offer that the other side needs and persevere. If you have done everything you can and the deal remains outside the limits you defined, then walk away. Either way, you're a winner.


-----------------
"Deal-Maker" Bernard Zick, a top Business Growth Expert, has spoken to over 250,000 top leaders in America. His expertise is widely recognized, and he is considered a master negotiator. You can contact "Deal-Maker" Zick at www.zick.com. His best-selling b