Are you negotiating or are you begging?

If you're not willing to walk away, then you're just begging.

Let me walk you through an example. Say you're in a situation with a big customer who you don't think you can afford to lose. They are a significant percentage of your business, and without them, your business would be weaker. The problem is that they also make very difficult demands. They want everything. They want lower prices, longer payment terms, less commitment, smaller orders... You have offered to lower the price to the customer in exchange for their commitment to higher MOQ and volume orders. They accept the lower price, but fail to commit to the increase in volume or MOQ. You said they were contingent on eachother in the negotiation, but you really want to close the deal and don't want to lose the customer. What should you do?

Walk away. No Deal.

Accepting gives you continued business at a lower price, and none of the benefits that you sought out. Why accept? Maybe it seems obvious to you that you shouldn't accept, but many people will accept a deal that is bad for them or bad for their organization. Accepting a deal like this is akin to begging becuase you're merely hoping the customer would give you more volume without gaining their commitment. It might work out, it might not. Depends on their mood. Don't beg. Negotiate.

How to avoid taking a bad deal?

Before you negotiate, set clear goals, clear wishes, clear ideas on what you can give away and what you must get. And define your walk-away point.

Setting your walk-away is a tremendously important step in a successful negotiation. Once in a negotiation it can be tempting to try to find a deal. It feels great to close a deal, and it's great to have resolution after a contentious discussion. But, if it's a bad deal, you're much better off walking away.

If you're not willing to walk away from a bad deal, you're just begging. Begging is hoping for something to be different without doing something to acheive it. If you ask the customer for higher volume but accept their lower price even though they offer you nothing what have you achieved? You have made your wishes known. It's entirely in the hands of the customer if they want to fill your wishes or not. This is begging.

In a negotiation, both parties are seeking a deal and operating in eachothers' limits. Both parties must compromise to find a deal. Both parties are using the power they have in the relationship to get the best possible deal for their side. The supplier has targets, and a walk-away. So does the customer. If you never say no, don't push back, the other side will think there is more to give and won't feel the need to compromise. If they never say no, you'll think it's the opportunity of the century and will see no need to compromise either. Don't beg. Negotiate.