Negotiation Brinkmanship Do’s & Don’t’s<\/h3><\/div><\/div><\/div>PurchTips edition #187<\/p>\n<\/div>
What Are The Secrets Of Effective Brinkmanship?<\/h4><\/div><\/div><\/div>M-w.com defines brinkmanship as “the art or practice of pushing a dangerous situation or confrontation to the limit of safety especially to force a desired outcome.” In business, brinkmanship is pushing a negotiation to the point of nearly killing a deal in order to achieve the most favorable terms when that deal is finally agreed upon.<\/p>\n
Brinkmanship often produces a negotiator’s greatest successes but can also result in the worst mistakes and, therefore, must be used carefully. Here are some “Do’s” and “Don’ts” for using brinkmanship when negotiating.<\/p>\n
DO:<\/strong>\u00a0Do use brinkmanship when at least one alternate supplier has comparable cost, quality, service, availability, and financial stability.<\/p>\nDON’T:<\/strong>\u00a0Don’t use brinkmanship if your organization would have to negatively alter its entire business model if you no longer have the option to use the supplier.<\/p>\nDO:<\/strong>\u00a0Do use brinkmanship at the end of a long, deadline-bound negotiation. A supplier that has spent much time and effort trying to earn your business will want that effort to result in a sale rather than nothing.<\/p>\nDON’T:<\/strong>\u00a0Don’t use brinkmanship when a supplier hasn’t yet fully engaged or has time to adjust its strategy.<\/p>\nDO:<\/strong>\u00a0Do use brinkmanship on a worthwhile term.<\/p>\nDON’T:\u00a0<\/strong>Don’t use brinkmanship on an insignificant term – the risks are too great for something immaterial.<\/p>\nDO:<\/strong>\u00a0Do set your target substantially past the supplier’s expressed limit. Demanding a concession that’s a “no brainer” for the supplier will fail to maximize your gain.<\/p>\nDON’T:<\/strong>\u00a0Don’t set your target unrealistically far from your supplier’s expressed limit. While a 26% discount proposed after a supplier expresses a 25% limit would be a “no brainer” for the supplier, demanding 50% at the last minute may make the supplier withdraw.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #187<\/p>\n<\/div>
What Are The Secrets Of Effective Brinkmanship?<\/h4><\/div><\/div><\/div>M-w.com defines brinkmanship as “the art or practice of pushing a dangerous situation or confrontation to the limit of safety especially to force a desired outcome.” In business, brinkmanship is pushing a negotiation to the point of nearly killing a deal in order to achieve the most favorable terms when that deal is finally agreed upon.<\/p>\n
Brinkmanship often produces a negotiator’s greatest successes but can also result in the worst mistakes and, therefore, must be used carefully. Here are some “Do’s” and “Don’ts” for using brinkmanship when negotiating.<\/p>\n
DO:<\/strong>\u00a0Do use brinkmanship when at least one alternate supplier has comparable cost, quality, service, availability, and financial stability.<\/p>\nDON’T:<\/strong>\u00a0Don’t use brinkmanship if your organization would have to negatively alter its entire business model if you no longer have the option to use the supplier.<\/p>\nDO:<\/strong>\u00a0Do use brinkmanship at the end of a long, deadline-bound negotiation. A supplier that has spent much time and effort trying to earn your business will want that effort to result in a sale rather than nothing.<\/p>\nDON’T:<\/strong>\u00a0Don’t use brinkmanship when a supplier hasn’t yet fully engaged or has time to adjust its strategy.<\/p>\nDO:<\/strong>\u00a0Do use brinkmanship on a worthwhile term.<\/p>\nDON’T:\u00a0<\/strong>Don’t use brinkmanship on an insignificant term – the risks are too great for something immaterial.<\/p>\nDO:<\/strong>\u00a0Do set your target substantially past the supplier’s expressed limit. Demanding a concession that’s a “no brainer” for the supplier will fail to maximize your gain.<\/p>\nDON’T:<\/strong>\u00a0Don’t set your target unrealistically far from your supplier’s expressed limit. While a 26% discount proposed after a supplier expresses a 25% limit would be a “no brainer” for the supplier, demanding 50% at the last minute may make the supplier withdraw.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
M-w.com defines brinkmanship as “the art or practice of pushing a dangerous situation or confrontation to the limit of safety especially to force a desired outcome.” In business, brinkmanship is pushing a negotiation to the point of nearly killing a deal in order to achieve the most favorable terms when that deal is finally agreed upon.<\/p>\n
Brinkmanship often produces a negotiator’s greatest successes but can also result in the worst mistakes and, therefore, must be used carefully. Here are some “Do’s” and “Don’ts” for using brinkmanship when negotiating.<\/p>\n
DO:<\/strong>\u00a0Do use brinkmanship when at least one alternate supplier has comparable cost, quality, service, availability, and financial stability.<\/p>\n DON’T:<\/strong>\u00a0Don’t use brinkmanship if your organization would have to negatively alter its entire business model if you no longer have the option to use the supplier.<\/p>\n DO:<\/strong>\u00a0Do use brinkmanship at the end of a long, deadline-bound negotiation. A supplier that has spent much time and effort trying to earn your business will want that effort to result in a sale rather than nothing.<\/p>\n DON’T:<\/strong>\u00a0Don’t use brinkmanship when a supplier hasn’t yet fully engaged or has time to adjust its strategy.<\/p>\n DO:<\/strong>\u00a0Do use brinkmanship on a worthwhile term.<\/p>\n DON’T:\u00a0<\/strong>Don’t use brinkmanship on an insignificant term – the risks are too great for something immaterial.<\/p>\n DO:<\/strong>\u00a0Do set your target substantially past the supplier’s expressed limit. Demanding a concession that’s a “no brainer” for the supplier will fail to maximize your gain.<\/p>\n DON’T:<\/strong>\u00a0Don’t set your target unrealistically far from your supplier’s expressed limit. While a 26% discount proposed after a supplier expresses a 25% limit would be a “no brainer” for the supplier, demanding 50% at the last minute may make the supplier withdraw.<\/p>\n<\/div><\/div><\/div><\/div><\/div> Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div> Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
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