Best way to negotiate a Deal | Story no. 38/101

The president of a small computer software company shared with me the following experience:  “We had developed new software which we sold on a five-year contract to a particular bank.  The bank president was excited about it, but his people weren’t really behind the decision.

“About a month later, that bank changed presidents.  The new president came to me and said, ‘I am uncomfortable with these software conversions.  I have a mess on my hands.  My people are all saying that they can’t go through this and I really feel I just can’t push it at this point in time.’ “My own company was in deep financial trouble.  I knew I had every legal right to enforce the contract.  But I had become convinced of the value of the principle of win-win.

“So I told him ‘We have a contract.  Your bank has secured our products and our services to convert you to this program.  But we understand that you’re not happy about it.  So what we’d like to do is give you back the contract, give you back your deposit, and if  you are ever looking for a software solution in the future, come back and see us.’

“I literally walked away from an $84,000 contract.  It was close to financial suicide.  But I felt that, in the long run, if the principle were true, it would come back and pay dividends.    “Three months later, the new president called me.  ‘I’m now going to make changes in my date processing,’ he said, ‘and I want to do business with you.’ He signed a contract for $240,000.”

De-briefing of the story

People are always focused on short term goals and their wins. But if you want long term success, you need to make sure that – even others benefits from your win. Therefore anything less than win-win is a poor choice as that will have a negative impact on the long-term relationships.

If you can’t reach a true win-win, it’s better off to go for no deal.

This Story can be used to share the importance of

1- Team Work

2-Negotiation Skills

3-Relationship

4- Long Term Goal Planning

Story source

From the book “7 Habits of highly Effective People” by Stephen Covey

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