Negotiation Training – How To Handle Deadlock

Posted on March 9th, 2013

Sometimes a buyer will deliberately deadlock in order to lower your aspirations. She will take you to the edge of the cliff and see how tough you talk then.

Buyers know that some sellers are so terrified of deadlock that, at the first sign, they will make concessions rather than face the possibility of not closing the business.

The well-trained buyer exploits this fear by threatening deadlock: ‘Well, if that’s the best you can do, it’s outside what I’m allowed to spend, so we’ll have to pass on it this time.’

The unskilled seller responds by offering a discount, and then rationalises it: ‘It’s the only way we could get the business.’ The skilled seller knows how to handle a price challenge and responds by suggesting another look before we admit defeat, or perhaps an alternative package.

A little overeager

Whether you are acting as the seller or the buyer, if you have pushed the other side too far and deadlock looms, you must have the grace to renegotiate. The all-time best line here is: ‘I may have been a little overeager, let’s go through it one more time before we admit defeat.’ The word ‘overeager’ allows you to climb down.

I learned this many years ago from an outstanding salesman, Clive Holmes. I happened to be in his office when he was on the phone negotiating to buy a horse from an owner in Ireland. The horse was advertised for sale at £12,000. Clive made a low offer and clearly, from what I could hear of the conversation, the owner was outraged. Clive had pushed too hard.

Then, with great grace and aplomb, he said, ‘My apologies, I may have been a little overeager, can we start again?’ He bought the horse close to the asking price and I learned a valuable lesson: if your stance in a transaction is to test the other party by aiming high, you must be a master of the gracious climbdown, otherwise you both walk away lose-lose. Anyone can be a tough negotiator; the object is to be effective.

Key Account Management: Build Relationships Across the Account

Successful key account management rarely depends on one relationship. Major purchasing decisions usually involve a network of people with different priorities, concerns and levels of influence. One person may control the budget, another may assess the technical detail, while others will use the product or service, or have the ability to block the decision. Yet […]

Leading Through Uncertainty: 8 Rules for Good Management

In this blog, LDL’s Deborah Wain provides practical leadership guidance for navigating uncertainty. The key is for managers to remain consistent, focused and fair. Working with managers across a range of organisations over the past few months, one question has come up repeatedly: how do you support your team and maintain motivation when there is […]

Stop Working for Nothing: Helping Accountants Have Better Fee Conversations

For over four decades, LDL has worked with accountancy firms across the UK, helping partners and teams strengthen the commercial skills that sit alongside technical expertise. In recent conversations, one phrase keeps coming up: “We’re doing more work than ever, but it doesn’t always feel like we’re being paid.” Fees are being challenged more frequently. […]