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Brinkmanship is a negotiation strategy in which one party demands that the other agrees to their conditions – or loses the deal. It's about pushing someone to the edge, to see what they do next.
Brinkmanship is a high-risk strategy. It can be extremely harmful to goodwill, and it can easily backfire.
So, why do it? Some people use brinkmanship to win a better deal, or to secure more favorable terms. Others want to demonstrate strength or dominance.
The best defense against brinkmanship is to avoid putting yourself in a vulnerable position in the first place. Avoid last-minute negotiations, for example. And don't rely on a single supplier, especially for a product or service that you can't do without.
Sometimes, no matter how secure you feel, people can still use brinkmanship against you. So, let's look at seven ways you can guard against it.
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First, avoid over-committing yourself. For example, if you're waiting to be paid for your goods or services don't agree to provide any more until the first invoice has been paid.
Also, avoid sharing your deadlines with clients. If they know you're against the clock, they could use it as leverage to get a better deal.
If a client wants to change the terms of a deal that you've already agreed, be upfront about how this will affect the amount you'll charge. This will make it harder for them to use brinkmanship or trigger a late renegotiation than if you had presented the new costs during the final stages of the deal.
Approach negotiations confidently. Your organization might be relying on this deal – but the client doesn't need to know that!
And, if you're offering something that a client can't find anywhere else, you're in a strong negotiating position – so use it!
Creating a false deal-breaker is another tactic you can use. But it's risky.
To do this, flag up an issue that you say you won't budge on. Later, if brinkmanship is used against you, you can relent on your earlier demand – but only if the other party takes a step back on one of theirs.
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A "logical" negotiator looks at a deal from a purely financial standpoint. They keep compromising as long as there is a net gain to be won on the deal. This, however, makes them vulnerable to brinkmanship.
In contrast, an "emotional" negotiator is convinced that their position is reasonable and will defend it vigorously. As a result, the other party will struggle to get them to accept less favorable terms.
But presenting yourself as an emotional negotiator can be risky. Your position may be interpreted as misleading and deceptive, particularly if it doesn't reflect your true feelings. This could end up damaging your reputation and your relationship with the client. So, be sure that your bosses are comfortable with these tactics before using them.
To learn more about brinkmanship, see the article that accompanies this video.
Reflective Questions:
- How do you interpret the concept of brinkmanship in negotiation contexts?
- How do you balance achieving favorable outcomes with maintaining integrity and healthy business relationships?
- Given that brinkmanship is a high-risk strategy, why do some negotiators choose to use it?