ππ» Jacob here.
I got a deeper dive for you today.
I’m unsure whether the following problem is American culture or people simply being soft.
Letβs discuss making concessions and how they can negatively affect you.
Too often, I hear negotiation advice suggesting that you should prepare to make more concessions when faced with a deadline to secure a deal.
I’ve also experienced this firsthand with clients who, on paper, seem intimidating but are hyper-quick to make concessions under a hint of pressure.
For example, an employer who picks your brain for four months in a hiring process extends a low-ball offer and expects you to commit to the contract within 48 hours.
Many give in.
Why is this okay?
- Have you done all your due diligence?
- Do you have hesitations?
- Are you expected to concede your compensation requirements for fear of an offer being rescinded?
The notion of cascading concessions to secure a deal is misguided and potentially devastating to your career.
It’s happening more often in the employer-driven job market.
Let’s be clear – no deal is better than a bad deal.
When you start negotiating against yourself by cascading concessions, you’re not just making a poorly negotiated deal; you’re setting the stage for a world of pain for you and them. Nobody wins.
You’ll end up with a deal that undermines your position, leaving you resentful and wondering where things went wrong. Plus, you’re trapped because you can’t leave that role for at least three years without the negative perception following your career around.
I digress.
It’s probably worse for you than for them.
If you find yourself in a position of strength during negotiations, making concessions to meet a deadline should never even cross your mind. It’s crucial to hold onto your advantage and not let time pressure sway your decisions.
Instead, you should look for more opportunities to collaborate, get creative, and improve the deal for everyone involved.
You’ve got the upper hand, so why would you give that up to adhere to an arbitrary timeline?
Now, if you’re in a position of weakness, that’s a different story.
In this case, it’s time to reassess your strategy.
Why are you in a weak position right now?
- Do you have any other alternatives?Β
- What could you have done to have more backup options and opportunities?Β
- Can you not afford to say no? Why?
How can you create strength and return to the negotiating table later with a better hand?
Or, if circumstances dictate, you may need to accept a temporary setback and focus on rebuilding your power for a later date. Live to fight another day.
Consider the example of someone who needs to take a less-than-ideal job to pay the mortgage.
They don’t have the luxury of holding out for their dream job because immediate survival takes precedence.
It’s a harsh reality that many face, and sometimes short-term sacrifices are necessary. You’re in a position of weakness, largely swayed by financial pressure.
Many not only make concessions but will work extra hard to manipulate any opportunity in their favor despite their weak negotiating position.
It pains me to say that many too often resort to deceit to pay the bills. And our corporate system continues to whir.
However, these situations are the exception, not the rule.
In most cases, cascading concessions to meet a deadline is a surefire path to a raw deal.
Don’t let this happen to you.
Stand your ground, know your worth, and don’t let anyone pressure you into a bad decision simply because time is running out.
Your future success depends on it.
Stay fearless, friends.
See you next week.