How can you break a deadlock in negotiation without conceding too much?

CONSIDER YOUR COMPETITION, which often includes "do nothing", the worst competitor ever. Let's say you have a fair deal and the other side trusts you. Still, if they believe they'll get a better deal elsewhere, the Fear of Missing Out (FOMO), will prevent them from closing with you. FOMO is the 2nd worst competitor you face. I am not talking about an actual better second offer, but the hope for another better offer. 1. Listen intently & find why they have FOMO. 2. DON'T negotiate against yourself. Some retailers offer price guarantees or other risk mitigation schemes. But these are often impractical & legally complex. FUD & urgency are good countermeasures. See my other post below. Walking away creates its own anti-FOMO.

I have found that trying to come up with something else not discussed to see if that can get the parties talking again and try to move forward. For example, if the negotiations are only about the amount of money, then try putting a non-monetary item in play.

Stalemates are usually a function of lack of preparation, ego or reluctance to see the other side’s perspective. If you are serious to collaborate & not win you need to understand the emotion driving them. Shifting to non monetary terms & setting deadlines can push things forward. I have been able to come through such situations by calling out the negatives first & opening up the field. I recently turned a stubborn counterpart by just praising them, their vision & hard-work while feeding them my goals. At other times I’ve had to give my best offer & walk away politely keeping future deals including the current one still open. Whatever you do don’t lose your marbles.

Sometimes, the most creative solutions are the simplest ones we overlook. By focusing on the underlying goal rather than a predetermined approach, we open ourselves to better discussions and more effective solutions. For example, instead of fixating on acquiring a hotel chain, consider the core objective: expanding your business and increasing revenue. This broader perspective can lead to innovative solutions that break negotiation deadlocks without sacrificing your core interests.

Here are some strategies that worked for me when deadlock is due to lack of trust, which means each party expects the other to make the first move (chicken or egg first?). 1. Introduce a third party. Deadlocks are usually harder with more than 2 parties. 2. Go crazy big: Make the deal larger. Make the stakes, risks, rewards, deal size larger. 3. Make the deal smaller 4. Introduce trust-building incremental steps 5. Change / negotiate the rules 6. Wear the other party's shoes to gain empathy and/or see what could be their play 7. Identify the fears and greeds of all parties. 8. Don't treat the other part as one. Often, there are many. Do #7 for each. 9. Engage with the subparties & address their individual fears & greeds.

I leverage non-monetary factors to create movement without impacting the bottom line. Understanding what the other party values—like delivery times, service levels, or exclusivity—allows me to offer concessions that are low-cost to me but highly valuable to them. This approach not only facilitates progress but also preserves my key interests, enabling a win-win scenario that satisfies both parties' needs.

Sometimes it’s not about how good your product or service is, but rather about how good your relationship with the other party is. Chemistry matters! This is why it is common practice in China to have a dinner with plenty of drinking when negotiating a contract. Business is almost never discussed at dinner apart from the usual pleasantries. What they’re looking for is whether they can get along with you. You will probably end up completely wasted but they will take care of you. The fact that you willingly push yourself to intoxication while being able to have a good time with them usually means that they can trust you. The contract? It will be delivered to you the next day, all duly signed.

In my opinion To break a deadlock in negotiation without conceding too much, focus on these strategies: 1. Identify Common Interests: Shift focus from positions to underlying interests. Find mutual benefits to create win-win solutions. 2. Offer Trade-Offs: Propose concessions on lower-priority issues in exchange for gains on high-priority ones. 3. Reframe the Problem: Present the issue from a different perspective to find new solutions. 4. Use Objective Criteria: Refer to independent standards to guide decisions. 5. Pause and Reflect: Take a break to reduce tension and allow time for new ideas. 6. Involve a Mediator: A neutral third party can facilitate communication and suggest fair compromises.

I had a great conversation with my friend and managing partner at a family law practice Patricia Fourcand on our podcast today. We discussed negotiations. From my experience, sometimes you need to back up and breathe. Taking the time to refresh and gain perspective is crucial. See all the options available and enter the negotiation with a mindset of understanding the other party's needs and goals. It's about finding common ground and creating win-win situations. Don't rush; take a step back if needed, and approach the table with clarity and empathy.

I'll be the bad guy and talk about FUD: Fear of Uncertainty & Doubt. Effective negotiators & salespeople use this all the time. It can play against you or for you. ➜ Against you: What are the possible uncertainties in your proposal? Think of the uncertainties the other side might have about it, AND what uncertainties your competitors might plant against you. ➜ For You: Think about the uncertainties in other solutions or proposals, and make sure your other party knows them. FUD is not effective if the uncertainties are nonsensical or far fetched. Also, keep in mind your biggest competitor is quite often DO NOTHING. Make sure you have FUD about that as well. Negotiators skilled in turning FUD into doom & gloom are VERY effective.

I focus on understanding the underlying interests of both parties, not just the positions they present. Introducing options for mutual gain, such as value-adds that cost little but hold high perceived value, can shift the dynamics. Also, I often use 'what if' scenarios to explore alternatives and open up dialogue, ensuring progress while safeguarding core interests.