Negotiation Brinkmanship Do's & Don'ts

What Are The Secrets Of Effective Brinkmanship?

M-w.com defines brinkmanship as "the art or practice of pushing
a dangerous situation or confrontation to the limit of safety
especially to force a desired outcome."  In business,
brinkmanship is pushing a negotiation to the point of nearly
killing a deal in order to achieve the most favorable terms
when that deal is finally agreed upon.

Brinkmanship often produces a negotiator's greatest successes
but can also result in the worst mistakes and, therefore, must
be used carefully.  Here are some "Do's" and "Don'ts" for using
brinkmanship when negotiating.

DO:     Do use brinkmanship when at least one alternate supplier
       has comparable cost, quality, service, availability, and
       financial stability.

DON'T:  Don't use brinkmanship if your organization would have
       to negatively alter its entire business model if you no
       longer have the option to use the supplier.

DO:     Do use brinkmanship at the end of a long, deadline-bound
       negotiation.  A supplier that has spent much time and
       effort trying to earn your business will want that
       effort to result in a sale rather than nothing.

DON'T:  Don't use brinkmanship when a supplier hasn't yet fully
       engaged or has time to adjust its strategy.

DO:     Do use brinkmanship on a worthwhile term.

DON'T:  Don't use brinkmanship on an insignificant term - the
       risks are too great for something immaterial.

DO:     Do set your target substantially past the supplier's
       expressed limit.  Demanding a concession that's a "no
       brainer" for the supplier will fail to maximize your
       gain.

DON'T:  Don't set your target unrealistically far from your
       supplier's expressed limit.  While a 26% discount
       proposed after a supplier expresses a 25% limit would be
       a "no brainer" for the supplier, demanding 50% at the
       last minute may make the supplier withdraw.

(keep reading)