Whether its the negotiation of a bad debt, debt settlement or salary raise there are several ways to succeed and fail in the negotiation process. It’s one thing to lose a deal because you were just far too hard in the negotiation but sometimes the other side is even rejecting your reasonable offers. When genuine attempts at negotiating in good faith are failing, you need a new approach. The key to success is understanding why people will sometimes reject even your best offers.
- You didn’t help them sell it to their partner
The person on the other side of the table might agree that your offer is reasonable, but they will still reject it if they can’t sell it to their spouse or partner. Your job is not simply to convince the person you’re negotiating with, but to help them be an effective ambassador for you when they are speaking to their partners, or others who have a say in what happens. Keep an eye on all of the people who can influence the negotiation on their side, and help build the case that will allow them to get the buy-in required.
If your talking to the husband then ask is he the one who pays the bills if he says yes you are talking to the decision maker. If not you have to help him sell it to his partner.
- The deal makes them look bad
People will often reject even fair and generous offers if accepting them will make them look bad. For example, even a concession on your part that gives them something they would not have otherwise expected can help them declare victory to their side — or at least help them show that all sides had to give in.
By giving them more time or a bigger discount or paying the mailing costs you help them save face.
- You didn’t justify it
It’s not enough that you tell them what you want you have to explain why. No matter how reasonable your proposal may seem to you, if you fail to justify it, there is a good chance it will be rejected. Don’t let your offer speak for itself; tell the story that goes with it. If you want action today then tell them why something must be done today.
- You didn’t respect their boundaries
Sometimes the problem is that their hands are truly tied. They would be willing to give you more time to make a decision, but they are facing their own deadline. They would be willing to give you more money up front to seal the deal, but they have financial constraints.
The key here is flexibility:: the more currencies you allow someone to pay you in, the more likely you are to get paid. Find a way to discount this or add value in order to get the deal done.
- ABC | Always Be Closing
Why should they agree to one of your requests if this will not seal the deal. If it is genuinely the case, it can help you to let them know that “this gets the deal done.” Or, offer more time if the person can sign an agreement to act in the future. Getting a pre dated payment fits this perfectly, the debtor can’t pay till the next payday by asking for the post dated check you get the deal closed and give the concession at the same time. The thing to remember is that you don’t always need to make a substantive concession in exchange for the concession you are asking for.
Lighthouse Consulting performs training classes for debt collection and debt settlement agents contact us for more info.