The Last Penny | Balancing Deals and Relationships in Negotiation

This Negotiation Club Podcast episode Philip Brown (LinkedIn) has the amazing John Lowry (LinkedIn) as a guest to discuss "The Last Penny" negotiation tactic highlighting the balance between securing a good deal and preserving relationships for long-term value.

John shared an impactful story from one of his mentors, who, despite relentless efforts to negotiate a discount for a $15,000 furniture set, encountered a store policy of zero negotiation. Even a simple $14.99 repair pen was non-negotiable, leading to feelings of dissatisfaction despite the purchase. This strict adherence to policy cost the store a future customer and generated negative word-of-mouth.

The core lesson emphasised by Lowry was the value of yielding “the last penny” as a strategic investment in the relationship. He referred to a J. Paul Getty quote that encapsulates the idea: if you insist on making every penny in a deal, you risk having fewer deals overall. This tactic suggests giving a perceived win to the other party to create goodwill and encourage repeat business, which sophisticated negotiators understand is essential for long-term success.

Key takeaways included understanding the psychology behind making concessions at the right time to maintain a positive relationship. This involves ensuring that the other party feels victorious, even if the gain is minor, thus boosting their perception of the deal and making future collaborations more likely​

NEGOTIATION TACTIC - The Last Penny (Page)

For more details on The Last Penny tactic and other negotiation techniques, visit The Negotiation Club’s website. There, you'll find insights on practical negotiation strategies and training resources.

NEGOTIATION CARDS - The Last Penny (Card)

At The Negotiation Club, we emphasise hands-on practice with our specialised Negotiation Cards. We're excited to introduce our latest addition—the Last Penny tactic card. This card guides you through practicing the timing and psychological finesse needed to offer that final concession, ensuring both sides feel valued and poised for future deals. Incorporate this card into your practice sessions to hone your skills and master the art of balancing substance with relationship-building.

JOHN'S BOOK "Negotiation Made Simple"

While you're exploring, consider checking out John Lowry’s acclaimed book, Negotiation Made Simple, which is packed with practical advice and expert insights. You can also tune into John's podcast, Negotiation Made Simple, for more in-depth discussions on mastering the art of negotiation.

Don't miss out on these resources to enhance your negotiation toolkit!