Negotiation Challenge In which I try to solve your dilemmas

Ask an expert

My career has been at the buyer/seller interface, mainly on the client side. If you contact me with a dilemma, I'll give you three options to deal with the situation. They may not always be appropriate in every situation, but hey!

Three options are better than none!

Send me your dilemmas here

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    • I want a COVID-19 discount!
      Client claims budget cut due to COVID-19. Client wants discount due to COVID-19. "COVID discount please!"
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      Why do clients do this?


      1. Because they can
      2. What did Wayne Gretzky say? "You miss 100% of the shots you don't take."
      3. Because their boss expects cost down, and you are on the list

      But its not fair!


      I think you mean "it's" not fair. Life ain't fair kid. Appeal to the umpire.

      What can I do?


      There are a lot of 'it depends…", but here are three options:
      1. De-spec your value proposition to create a "COVID-19 Special" for clients that are price shopping. It won't be what they want, but it starts a conversation
      2. Keep your price and bundle some free services as a "COVD-19 Special" for loyal customers
      3. Link the client's commitment to buy a specific volume to a discounted rate. A "win:win"

      What shouldn't I do?


      1. Dont panic. It's nothing personal. Strictly business. Keep calm and carry on explaining your value proposition
      2. Make a unilateral concession. Never do this, ever. Always get something back
      3. Assume that your competitors will undercut you in the longer term. In the short term, maybe, but they are probably in the same situation as you.


    • The procurement person is the reincarnation of Vlad the Impaler
      Procurement say "we're reducing our order" or "we need better terms" or "we need to rip up the contract" or "we can't honour our deal" or "we want to walk away from the deal".
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      Why do clients do this?


      1. Because they are under pressure from their bosses
      2. What did Wayne Gretzky say? "You miss 100% of the shots you don't take."
      3. Because their boss expects cost down, and you are on the list

      But its not fair!


      I think you mean "it's" not fair. Life ain't fair kid. Appeal to the umpire.

      What can I do?


      There are a lot of 'it depends…", but here are three options:
      1. Contracts are legally enforceable promises. One party cannot breach an obligation without some consequences. Threatening legal action might not help the relationship, but it starts a conversation
      2. Offer to help by retaining the commitment to volume, but varying the timescale over which the volume must be bought.
      3. Prepare a volume price proposal that shows they can have a reduced volume (but at a higher price) or keep their current price (but with a commitment to volume). A Russian Front

      What shouldn't I do?


      1. Dont panic. It's nothing personal. Strictly business. You can refer this to your lawyers and they will ask "how badly do we need this client?"
      2. Make a unilateral concession. Never do this, ever. Always get something back
      3. Assume that mentioning that it may be better to terminate the contract will damage the relationship. The other party didn't care about the relationship when they suggested welching on the deal, did they?

    • Sales Manager wants to increase price for all customers
      Sales manager wants to offset falling sales revenue by raising prices for remaining customers. This penalises loyal customers and will damage relationships!
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      Why do sales managers do this?


      1. Because they are under pressure from their bosses
      2. What did Wayne Gretzky say? "You miss 100% of the shots you don't take."
      3. Because they have a target, like everyone else.

      But its not fair!


      I think you mean "it's" not fair. Life ain't fair kid. Appeal to the umpire.

      What can I do?


      There are a lot of 'it depends…", but here are three options:
      1. Rank your customers in descending order of loyalty. Identify the top five who are most likely to defect to a competitor or go to market. Ask your boss for support to help migrate these customers to new pricing
      2. Prepare three reasons why prices have to rise so you feel confident dealing with objections
        • Your business has moved along the cost curve due to reduced levels of activity
        • Your business is facing significant cost challenges in on-shoring your supply chain (which will lead to greater assurance of supply)
        • Your business is investing in supply chain resilience to maintain service levels, which will benefit clients in the medium term
      3. Suggest a sales support package of some free product or services for loyal customers to soften the blow

      What shouldn't I do?


      1. Dont panic. It's nothing personal. Strictly business. Take the brave pill and start a dialogue
      2. Assume that all customers will walk. Some will, some won't, so what?
      3. Assume that your competitors are ready and waiting to step in. Do you believe in your value proposition? Act like you do!

    • Clients want tech support for free on Zoom
      Clients see Zoom as a way to get free support and/or advice and say "it's just a quick Zoom call, it shouldn't cost anything" and then decline to pay
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      Why do clients do this?


      1. Because they are under pressure from their bosses
      2. What did Wayne Gretzky say? "You miss 100% of the shots you don't take."
      3. Because their boss expects cost down, and you are on the list

      But its not fair!


      I think you mean "it's" not fair. Life ain't fair kid. Appeal to the umpire.

      What can I do?


      There are a lot of 'it depends…", but here are three options:
      1. Make flagfall after 5 minutes, but then client charged for 60 minutes regardless of call duration
      2. Offer "free" tech support with no meter running in return for monthly subscription
      3. Schedule a limited number of free, non-consecutive five minute slots at known quiet times and ensure that the call ends after five minutes

      What shouldn't I do?


      1. Dont panic. It's nothing personal. Strictly business.
      2. Make a unilateral concession. Never do this, ever. Always get something back
      3. Assume that the client's logic is valid. Any professional that sells their time can give some time away, but what happens when every client expects that their time will be free?

    © 2024 Paul Rogers