February 11, 2021

Walk away


The equation goes like this: If the cost of things you have to buy to support the deal + cost of the things you have to do to support the deal = less than whatever you get from the other side of the table, it’s a positive sum and worth considering.

This works on the buy side or the sell side, for products or services, for employers and employees, for customers and vendors. A positive sum is worth considering.

For a deal to struck, both sides have to see pluses on their own side. The bigger the plus, the more likely you’ll want to shake hands.

Everybody should focus on their own plus. Sadly, some of us focus on making sure we win bigger than the other side. And that’s where the trouble starts.

Skippy strategy: When there aren’t enough plusses, it’s time to walk away from the deal.