Have you ever been in a situation where you felt like you were being taken advantage of? Maybe you were trying to buy a car and the dealer wouldn’t budge on the price. Or maybe you were negotiating your salary at a new job and the company low-balled you. In these situations, it can be tempting to just give in and accept whatever offer is on the table. But sometimes, standing your ground and walking away from the negotiation can actually get you a better deal in the end. The walk away negotiation tactic is simple: if someone isn’t giving you what want, then walk away from the negotiation entirely.
This sends a clear message that YOU are not desperate or willing to take just any offer. Rather, YOU are confident enough in YOUR value to know when it’s time to move on. And oftentimes, this will make them come back with a more favorable offer for fear of losing out completely.
Of course, there are certain circumstances where walking away might not be possible or advisable (like if there’s only one buyer for your house). But if used correctly, the walk way negotiation strategy can be an incredibly powerful tool – so next time don’t be afraid to try it!
Walk Away Negotiation Tactic
In this strategy, one party leaves the negotiating table to force the other side to make concessions. This strategy is often used when one side is not willing to budge on its position and the other side is desperate for a resolution. The hope is that by walking away, the other party will realize how much they need the deal and will be more willing to make concessions.
When To Walk Away From a Bad Sales Deal
If you keep in mind these six simple rules, you’ll know how to spot a bad deal.
1. Think About Walking Away Before You Even Start Negotiating
When considering whether or not to walk away, you should first think about why you’re walking away. Are you just not interested in this deal? Or are you using it as leverage to get a better price?
When you’re entering into future negotiations, it’s helpful to have a clear idea of what your “walk away” is before you start. This is a discipline that you can build that should become natural to you over time.
Set your walk-away rules before every meeting.
Before you enter into any new negotiation, it is important to take a moment to think about what terms you are willing to accept, and what you would consider to be too much of a concession. Having this information written down ahead of time will help you to keep perspective during the negotiation process.
As a professional negotiator, I always start by getting my clients to agree on what they will and will not accept as an outcome. This helps ensure that everyone is on the same page from the beginning and prevents any misunderstandings or surprises later on.
At the Harvard Business School, they sometimes refer to your “Best alternative to a negotiated agreement” or “BANTA”.
This is an interesting idea. It’s useful to know what you can do if your sale falls through.
Where will your negotiations take you? What will you do if this doesn’t pan out?
Having a Plan B will help you feel more relaxed.
If you’re not willing to walk away, you’re not going to be able to negotiate.
2. Keep an Eye on Your Walk Away Point
As you get further into the negotiation, always keep your “walk away” point in mind. This is the point at which you will leave the negotiation if an agreement cannot be reached.
We’ve made a lot of progress toward our goals, but we’re still a ways away from the walk away. The terms are getting closer to the range of your walk away, though.
When we know our bottom line, we can stop negotiating as soon as the other party starts trying to take advantage of us. This saves us from wasting time on a deal that will never go through.
Before you go into the negotiations, you already knew your minimum price for selling a software product to a client.
You negotiated with the customer and found out they will only be paying $89 per employee, not including any additional expenses.
You used to feel compelled to keep talking to this prospect, but because you have a set standard for walking away and you know that this client is not a good fit for you, you now know to politely end the call.
You can now easily find customers who will be willing to pay $99 a month to use your product.
3. Do Not Act on Emotion
Sales is an emotional process. We all learn how to connect with our customers and understand their emotional needs.
Just like you, we salespeople have feelings too.
Unfortunately, our emotional side can often cause us to make mistakes. We have to be careful not to push for a bad deal.
We don’t want to look bad for our superiors or embarrass ourselves in front of our friends.
When we get emotional about a deal, we are often so focused on winning the business that we forget about our quotas, our numbers, and our sales goals.
When we allow our emotions to dictate our actions, we often make poor decisions. Instead of following our emotions, we should focus on winning deals and achieving our goals. This will help us to be more successful in the long run.
4. Know Your Backup Options
Having other options allows you to walk away if the deal isn’t right for you. Having alternatives makes it easier to say “no” to a deal that isn’t in your best interest.
If your prospect is indicating that your price may be too high or that they’re not sure they want to commit to a deal, it may be time to end the call.
If you’re in a sales discussion and the buyer is starting to signal that it may not be the right deal, it’s important to have backup options. Without other strong leads in the pipeline, you may feel like you have to force the sale to make your quota or goals. This is why having a robust pipeline is so critical.
Knowing you have a pipeline in place will help you feel less stuck when a deal doesn’t pan out.
5. If It Doesn’t Feel Right, It’s Probably Not
If a deal just feels off, then it probably is. So pay attention to how you’re feeling and why.
Are you unsure about whether you should close a sale because you lack the confidence that you can or because you see a red flag?
Studies have shown that ignoring your instincts and feelings will not help in the long run.
If your sales technique isn’t working, then don’t be afraid to try again. It’s better to start over with a clean slate than to keep wasting your time.
It’s fine to walk away.
6. Remember Your Values
Remember your values and goals. Why are you on this sales journey? By keeping this in mind, you can focus on what matters to you and walk away from a deal that doesn’t fit your criteria.
Your friends? Your community? Who are you trying to take care of? Is it your family, friends, or community?
If you focus on your bigger goals and mission, every sale you make is just a small piece of the big picture.
When you keep the big picture of your life’s mission in focus, it’s easier to walk away when a deal doesn’t pan out. This is because you know you can still accomplish your mission, even if the specific opportunity you’re pursuing doesn’t work out.
At What Point Should You Walk Away from a Negotiation?
There is no definitive answer to this question, as it depends on the situation and the parties involved. However, some general guidelines can be followed. If a negotiation is not progressing and seems to be at an impasse, it may be time to walk away. This is especially true if one party is being unreasonable or demanding more than what is fair. Additionally, if either party feels uncomfortable or threatened, it may be best to end the negotiation.
How Do You Politely Walk Away from a Negotiation?
Stay calm and respectful. Be clear about your goals and what you are willing to compromise on. Have a backup plan in case the negotiation does not go your way. It is also important to remember that you do not have to agree to everything to reach a successful agreement.
Should You Ever Walk Away from a Negotiation?
There are certain circumstances in which it may be beneficial to walk away from a negotiation, such as if the other party is being unreasonable or if the terms of the agreement are not acceptable. Additionally, walking away can also be used as a tactic to try and improve one’s position in the negotiation.
What Does Walk Away Mean in Business?
When you “walk away” from a business deal, it means that you are no longer interested in pursuing it. This can happen for a variety of reasons, including if the other party is not willing to meet your terms, or if you have found a better deal elsewhere.
Conclusion
If you’re looking to score a better deal in your next negotiation, try the walk away negotiation tactic. This sends a clear message that YOU are not desperate or willing to take just any offer but are confident enough in YOUR value to know when it’s time to move on. Oftentimes, this will make them come back with a more favorable offer for fear of losing out completely. So next time don’t be afraid to try it!
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