Someone said something really funny to me the other day. They sent me a document of terms that, they said, my company had to comply with. And then they told me the terms were “non-negotiable.”
That made me smile.
In business, everything is negotiable in some form or fashion because, as a basic principle, we always have an alternative: instead of saying “yes” we can say “no.”
Granted, the outcome may not be what we want. Saying “no” may mean the end of the deal. So the question one must ask is, “Does saying ‘no’ better meet my interests than saying ‘yes’?”
This is a question many business people don’t ask because they fear that they will lose a deal. The focus and passion on “getting this signed” has been relentless for weeks, so the idea of pushing back on the other party’s unreasonable ultimatum is unfathomable.
But most people would be surprised at what happens when you say “no.” Often, the other party does exactly what they said they would not do: they negotiate. They may ask why you said “no” and now you can discuss the legitimacy of their request. And we may learn that the reason why they said this was non-negotiable is simply because they did not want to negotiate! Perhaps they want to avoid a negotiation because it was “policy” and now they have to get an exception to “policy,” which you often can if the stakes are high enough. Or maybe the other party made a commitment to a third-party that exposes it to too much risk, and now they want you to share the risk (a so-called “flowdown”).
If it is a flowdown, by the way, the answer should be, “Your inability to negotiate is not my concession. Learn to negotiate better.” (That’s always a popular response!)
Seriously, when hit with a list of “non-negotiables,” you can respond that these are obviously important terms to the other party and you will assess them and their impact on the deal. However, reserve the right to come back with a response because you can only agree to terms that make sense for your business. Often the other party is equally afraid of losing the deal, and they should be willing to have that conversation. If they will not discuss the terms, that’s a red flag of how the deal will unfold and how they will work with you. “No” may drive a better outcome than “yes.”
