One of our clients was close to an agreement with a bank to offer a few preliminary services, which could pave the way for a large-scale project and substantial revenues.
As often happens when deals are close to conclusion, the bank’s representative asked for one last concession. She said, “Since the ultimate deal (still not assured to my client) will be worth a lot of money, how about if you offer these preliminary services at no cost?”
Though my client is flexible in many ways, the no-cost option was unacceptable under any circumstances. His instinctive reaction was to say “no” as politely as possible, but thanks to his experience taking the Scotwork course, he used the over/under method.
My client’s reply was, “If your bank will offer us a $25,000 loan at no interest for six months, then we’ll be happy to offer you the preliminary services at no cost.” From his standpoint, the value of the loan at today’s interest and inflation rates was roughly equivalent to the value of his services. Plus, it allowed him to say “yes” to an unacceptable proposal and put the ball back in the bank representative’s court. Her good-humored response was, “I see your point! I certainly can’t make no-interest loans. Let’s discuss the details of your original proposal.”
An over/under proposal is rarely used to seal a deal. Rather, it puts a mirror up to the person making the unacceptable proposal so it will hopefully disappear. So, whenever necessary, look for a condition that makes the other side’s proposal acceptable to you—no matter how extreme your counterproposal might be. Because “yes” is far more powerful than “no.”
Scotwork North America
About the author:
Say you’ve spent the past 35 years building nationally recognized companies in the construction, fashion, health & wellness, and consumer products industries. And by <i>successful</i>, we mean the kind of success that grabs the attention of <i>Inc.</i> magazine, which recognizes you as the “leader of one of the best small businesses in America to work for.” Isn’t your next logical move to ease back, relax, and reflect — to bask a bit in your accomplishments? Not according to John...