Testing the Walk-Away Price
The Negotiating Challenge
Our client was renegotiating an annual supply contract
- The contract was with a large group which had made assumptions regarding our client’s 'normal' acceptance of upward annual price reviews
- An annual event was the 'this is our final price, and you’ll have to accept it' tactic
- Many of our client’s contracts are with similar monopoly or semi-monopoly suppliers, and so there is apparently limited room to move.
How ENSI Helped
During the 3-day training program, the 'Range' concept was discussed in detail.
- Team members in the department had highly variable experience, and discussion centred on worked examples from the site
- There was reluctance to use several techniques on perceived (semi)monopoly suppliers
- It was pointed out that nobody had tried such a direct challenge previously
- One more senior team member decided to test the limit of the suppliers 'walk away' price.
The client secured a $30,000/year saving on a 'standard' contract.
- The specific team member gained enormous confidence to continue to use some of the techniques learned
- Further, other supply staff members were encouraged to do the same.
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ENS International (ENSI) provides negotiation consulting and training services helping people and organizations think and act differently to achieve more.
Negotiators gain the edge using proven ENSI influencing processes incorporating commercial psychology with a deep understanding of human behaviour. ENSI delivers through Consulting Services and In-House or Open Course training.
With over 60 Practitioners working within 75 countries we have a depth of experience across a diverse range of sectors.