When To Walk Away From A Negotiation

Building project proposals and negotiating contracts is a time-consuming process. If a deal doesn’t close, that time is wasted, and the less time wasted, the better. Knowing when to hold ’em and when to fold ’em is an art. Push ROI has some hard and fast rules for when to simply walk away from a negotiation, and never return. Repeated Failure To Communicate Desired Outcomes Part of any project proposal is defining goals and budgets, at least broadly. The longer it takes to pry the real goals and actual budgets out of the other party, the more time is wasted. Several years ago, Push ROI was asked to prepare a proposal to “level [large competitor].” We asked dozens of clarifying questions and even confirmed that the company knew they were describing a budget of several hundred thousand dollars a month. The company repeatedly told us they were willing and able to meet those budgets. After 40 hours of research and proposal building, we presented our plan of action. The company responded by asking what we could do for $5,000 a month, (too little for a fair marketing test). Finding out that the actual budget was about 2% of what we’d been repeatedly told should have been the moment we cut and ran. That’s not a one-off issue. In the article examining entrepreneurial addiction, I talk about a friend who said his goal was “earning at least a million a month within a year or two.” His real goals were far…When To Walk Away From A Negotiation

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