Stefan Drew - The Marketing Magician

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Stefan Drew - The Marketing Magician

Category: Negotiation

Negotiation Tactics: Take a Break

Coffee breaks are important when negotiating business dealsTop Negotiation Tip: To Secure an Advantage, Take a Break from Negotiations 

When negotiating one of the most powerful techniques you can use to gain an advantage is to call for a break or recess.  This provides you with thinking time, and nothing in negotiation is more important than thinking through your options. 
Most breaks can be planned in advance by ensuring coffee will be delivered at a given time or that you agree that you will break at a given time. And in an emergency it is easy just to call for a comfort break .. few will argue with you if you say you are going to take it. This is a great ploy when you are under pressure or need to think through a twist or turn in the direction things are going. 
Taking a break has several advantages. As listed below ….
It provides you time to consider new offers or departures from the expected
You have time to consider where they are coming from and what they are looking for
It allows time for pressure points to defuse. 
Taking a Break has three effects –
1 – It gives you time to consider what has been tabled
2 – It gives you time to think through where they are coming from
3 – It takes the heat or emotion out of the situation.

How to Negotiate Online

How to negotiate 20% discounts from online and email offers
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Negotiating Online is Relevant When We Are Offered Upgrades or Renewals by Email or Online


It’s quite easy to negotiate 20%, or more when offered an upgrade or renewal via email or other online method.


For example, a well-known satnav company recently sent me a reminder that my software was due for renewal. The cost was £49.50. 


I wasn’t prepared to pay this amount so I ignored the upgrade offer and considered my options. 


The software expired and I had no “live services” software running .. just maps and routes. It left me without info on traffic jams and that is the part I make most use of. 


My option was to use my phone and the satnav app I had on it. 


But the company wanted a second chance to offer me the satnav system and sent out another email.



This time they offered me approx 20% discount.  Why do this? Probably because their view was that they either lost a sale or made one at a lower profit margin. And of course it was December and their year-end might be approaching.


I bought the renewal and obtained a 20% discount  .. all without actually negotiating.


How do discounts affect profits? 

If you are thinking of using this tactic, beware. 

Let’s imagine the profit margin for the software is 40%. By offering 20% they have halved their profit. And on occasion, I’ve seen discounts that mean the product or service is sold at a lost. Of course, that means that competitors don’t get market share .. but it does cost money. 

The profit margins bite harder when the product or service entails real cost to provide. Whereas it could be argued that a software download costs (virtually) nothing to provide so margins are more flexible. 


What could you negotiate online?


How would you deal with this sale if you were the retailer?