This is Not Negotiable

When buyers use this tactic they might say, 'I have talked to my superiors; we have checked prices with your competitors, and this is all we are prepared to pay.' Or they might say, 'Don't give me your benefit story, we know what we are doing, this is our bottom line.' When a seller uses the same tactic, they might simply say, 'This is not negotiable.' Neither seller nor buyer should use these phrases because they usually produce anger and they show poor negotiating skills. When the buyer uses these phrases, the great temptation is to cave in to price.

One of my friends worked as salesman for a professional European consulting service. Their company policy meant that in most cases the seller would say, 'We do not negotiate' and would in fact walk away from the sale rather than do a deal. I understand their determination to hold on to price and not erode profits. However, one in two of those that walked away could have been saved with a gesture that would enable them to save face.

You could say in a situation like that, 'Company policy does not enable me to offer any kind of discount; however, if you... then we...' Maybe you could offer a small PC-based piece of software for them to develop your service, or a manual, or a reference book. There has to be a way for them to save face.

When our counterpart uses this phrase, we have two options: we either succumb to pressure on price, or handle it. If we are to handle it, we must give them a face-saving way out, otherwise we produce deadlock.

We can say, for example, 'I would like to take it but it's just not possible. However, if you could do this... we could do that...'

If a buyer says, 'Is your fee negotiable?', we say, 'We are happy to listen to any constructive suggestions you may have about the overall proposal.' My company was approached recently, and I was asked to be a keynote speaker at a business conference in Milton Keynes. I quoted my fee, and there was a telling silence. The other person began to negotiate, suggesting that I might like to do the seminar free, in return for a number of business opportunities. When I made it clear that it was not really of interest, he asked the next obvious question: 'Is your fee negotiable?' My answer was straightforward: 'I'm happy to look at this constructively - one of my colleagues would be interested in the business opportunities, he is prepared to come and speak and the cost will be significantly lower.' He got a lower price but he had to take a different proposal.

It is worth negotiating, worth hanging in there, and if we give them a face-saving way out, our opposite number will either back off or moderate their approach, if they see that we legitimately defend our price.

Don't ever assume that anything is not negotiable. A friend of mine was relating a particular customs raid. The ship was boarded at Tilbury and was being checked for illegally distilled spirit. Apparently on some voyages the practice of one or two crew members is to use denatured spirit, add fruit, or potatoes, boil it, strain it and serve it up!

On this particular ship the offending distiller assumed that he was going to be apprehended, and instead of pouring it overboard, drank the lot. He was violently ill and subsequently died with over 18 times the safe limit in his blood. Tragic, and in every sense unnecessary. But he assumed the outcome was not negotiable, with dire consequences.