- All
- Soft Skills
- Contract Negotiation
Powered by AI and the LinkedIn community
1
Know your alternatives
Be the first to add your personal experience
2
Assess your interests and priorities
Be the first to add your personal experience
3
Do your research and analysis
Be the first to add your personal experience
4
Be flexible and creative
Be the first to add your personal experience
5
Communicate and negotiate effectively
Be the first to add your personal experience
6
Here’s what else to consider
Be the first to add your personal experience
Negotiating a contract can be challenging and stressful, especially when you have to decide how far you are willing to compromise and when you should walk away from the deal. Your walk-away point, also known as your reservation price, is the minimum value or outcome that you are willing to accept in a negotiation. If the other party cannot meet or exceed your walk-away point, you are better off rejecting the offer and looking for other options. But how can you determine your walk-away point in a negotiation? Here are some tips to help you.
Find expert answers in this collaborative article
Experts who add quality contributions will have a chance to be featured. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
1 Know your alternatives
Before you enter a negotiation, you should have a clear idea of what your best alternative to a negotiated agreement (BATNA) is. Your BATNA is the most attractive option that you can pursue if the negotiation fails or no agreement is reached. For example, if you are negotiating a salary with a potential employer, your BATNA could be another job offer, a promotion at your current job, or starting your own business. Your BATNA helps you establish your walk-away point, because it sets the benchmark for the minimum value that you can accept from the negotiation. If the other party's offer is lower than your BATNA, you should walk away.
Help others by sharing more (125 characters min.)
2 Assess your interests and priorities
Another factor that influences your walk-away point is your interests and priorities. Your interests are the underlying needs, goals, and motivations that drive your negotiation. Your priorities are the relative importance or urgency of your interests. For example, if you are negotiating a contract with a client, your interests could be the scope, quality, and timeline of the project, while your priorities could be the budget, the deadline, and the relationship with the client. You should identify and rank your interests and priorities before the negotiation, and use them to evaluate the offers and proposals that you receive. Your walk-away point should reflect the minimum level of satisfaction that you require for your most important interests and priorities.
Help others by sharing more (125 characters min.)
3 Do your research and analysis
To determine your walk-away point, you also need to do some research and analysis on the market, the industry, and the other party. You should gather relevant and reliable information and data that can help you estimate the value and feasibility of the negotiation outcomes. For example, if you are negotiating a price with a supplier, you should research the average market prices, the supply and demand trends, and the quality and reputation of the supplier. You should also analyze the strengths and weaknesses of your position and the other party's position, and anticipate their interests, priorities, and walk-away point. By doing your research and analysis, you can set a realistic and credible walk-away point that reflects the market conditions and the negotiation dynamics.
Help others by sharing more (125 characters min.)
4 Be flexible and creative
While having a walk-away point is essential for a successful negotiation, you should also be flexible and creative in finding solutions that can benefit both parties. Your walk-away point is not a fixed or rigid number, but a range or zone that can vary depending on the circ*mstances and the trade-offs that you are willing to make. For example, if you are negotiating a salary with a potential employer, you might be willing to accept a lower salary if they offer you more benefits, perks, or opportunities. You should also be open to exploring different options and alternatives that can address the interests and priorities of both parties, and create value for the negotiation. By being flexible and creative, you can increase your chances of reaching a win-win agreement, or at least a fair and reasonable one.
Help others by sharing more (125 characters min.)
5 Communicate and negotiate effectively
Finally, to determine and defend your walk-away point, you need to communicate and negotiate effectively with the other party. You should use clear, respectful, and assertive language to convey your interests, priorities, and expectations, and to ask questions, listen, and understand the other party's perspective. You should also use appropriate strategies and tactics to persuade, influence, and leverage the other party, and to handle any conflicts, objections, or impasses that might arise. You should avoid revealing your walk-away point too early or too easily, as it might weaken your bargaining power or invite lowball offers. However, you should also be prepared to walk away if the negotiation reaches a deadlock or becomes unacceptable, and to do so in a professional and graceful manner.
Help others by sharing more (125 characters min.)
6 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
Help others by sharing more (125 characters min.)
Contract Negotiation
Contract Negotiation
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Contract Negotiation
No more previous content
- Your team and the client are at odds over contract terms. How can you bridge the gap in understanding? 1 contribution
- You're about to sign a contract. How can you ensure everyone understands the project scope? 1 contribution
- Facing unexpected setbacks in contract terms, how will you navigate renegotiating deadlines and deliverables?
- You're facing delays in a client project. How can you ensure the contract remains intact?
- You're facing skepticism from internal teams on contract terms. How can you win their trust and cooperation?
No more next content
Explore Other Skills
- Communication
- Interpersonal Skills
- Public Speaking
- Personal Branding
- Leadership Development
- Problem Solving
- Thought Leadership
- Leadership
- Research Skills
- Executive Coaching
More relevant reading
- Business Development What information should you gather to prepare for a negotiation?
- Negotiation You’re a consultant who needs to negotiate a better contract with a supplier. How can you do it?
- Media Sales What strategies can you use to negotiate a long-term contract without a clear budget?
- Transportation Management You're struggling to negotiate a deal. How can you get the upper hand?