Categories
Archives
Search
Subscribe to Our Monthly Digest
Skillful negotiations: Take the high road to more profit
Two years ago I received a call from a client who was in a dilemma. He had just been informed by his company accountant that some equipment he had sold several months ago had not been paid for. The equipment was expensive and the unpaid balance was hefty.
Jack thought about his options: He could go the legal route and take the heavy-handed approach. This would burn the relationship. He didn’t want to do that. The other option was to set up a video conference with himself, his boss, and the two owners that owed them. They set the meeting up.
Next, we talked about preparation for the meeting. The most seasoned negotiators are very aware of these two fundamentals:
- Know your position of strength going into the meeting.
- Clearly define these three different categories:
- The ideal outcome of the meeting
- The acceptable outcome
- The “walk away”
The meeting began on a friendly tone that enabled everyone to relax. Jack’s boss is an excellent listener and he let the owners talk first. He then paraphrased and affirmed what they said, and they nodded in agreement. Throughout the meeting, Jack and his boss were able were able to clearly communicate their negotiables and non-negotiables. The meeting went well, and they were pleased with the plan that was agreed upon.
When I think about this situation I realize there are so many ways this situation could have gone bad with shouting matches and the destruction of a relationship.
We are all in the midst of recovering from the Pandemic. It is likely that you are holding someone’s inventory and have a balance that is overdue. If you value the relationship, consider having a meeting with them to find a common ground. Once again, here are the key fundamentals:
- Know your position of strength (and theirs)
- Define your ideal, acceptable, and walk-away outcomes.
- Begin in a friendly way.
And remember the “4 F’s”
- Firm
- Friendly
- Frank
- Fair