In 2008 we pitched a piece of business that we really wanted and needed. The new business effort was a hard-fought battle and after numerous presentations our potential client told us the committee had narrowed it down to us and one other agency. The problem was we were more expensive than our competition.
“As much as I’d like to work with you, they’ll do the job for less” the client told us.
Needless to say, our pricing had not been determined casually. Before we ever submitted a bid, my partner Roberto Schaps had built a well thought-out list of deliverables and figured out exactly what resources and investment it would take for us to do the work. We hadn’t discounted our price but we also hadn’t added a cushion for negotiating. Doing the job for less would provide much-needed cash flow but would not earn us any profits. And regardless of my Poppa Hy’s old line that he “lost money on every deal but made it up in volume,” we weren’t smart enough to figure out how to stay in business that way.
Remember that this was back in the dark days of the great recession and we really REALLY needed the business. But after a lot of number juggling, hand-wringing, and soul- searching, we finally went back to our prospect and said “no, we couldn’t do the job for less.”
When you say “no” you establish who you are, what you stand for, and — most importantly — what you will and will not do in a given situation. And whether you’re an advertising agency desperately trying to make payroll; an unwilling young woman being offered another drink at a fraternity kegger; an elected official being told by their party leaders to change course on an issue that they promised to their constituency; or an artist debating changing a piece of artwork in order to have it hung in a gallery, getting the “yes” you want often comes down to your ability to say “no.”
Because of its incomparable ability to establish terms and boundaries, “no” might very well be the most powerful word in the English language. Thanks to the naked simplicity of just two letters —‘n’ and ‘o’ — the word “no” has a raw power that can’t be enhanced with more letters or syllables. “What part of ‘no’ didn’t you understand?” says it all about as clearly and succinctly as any comeback you can employ.
Most of us want to be positive, helpful, agreeable, and we want to be liked. So we don’t like to say “no.” “No” is not friendly, it’s not happy; it’s not what people want to hear. But unless we’re willing to draw our line in the sand and say “no,” then we can’t really achieve the outcome we want. Ironically, sometimes the only way to get to “yes” is to start with “no.”
“No, I won’t compromise my values.”
“No, I will not vote against my best interests.”
“No, I cannot sacrifice my ideals.”
Of course, not saying “no” because we want to be nice is really a misnomer. After all, what’s nice about agreeing to a task that you already know you’re not going to be able to complete well or on time? What’s nice about saying “yes” to a social engagement that you don’t want to go to, don’t have time to attend, and will probably wind up blowing off? And even if you’re not concerned about being nice to the person asking you to do something, what’s nice about putting yourself under the pressure of doing something you don’t want to do?
So repeat after me: “No, I can’t do that.” “No, I don’t want to do that.” “No, I won’t change my mind.” “No, I will not be there.” “No, I can’t lower my price.”
And speaking of not lowering prices, did we get that piece of business back in 2008 when the economy was sucking the wet mop and lots of businesses were hurting and we refused to lower our fee? Considering that I’m still writing these blogs and our business is humming along better than ever, I think you can figure out the answer (and it’s not “no”).
I completely agree that there will always be someone (especially in the printing business) who does not understand covering their fixed costs. Saying “No” to bad deals is sometimes necessary.
However, your logic sounded a lot like the logic being used in politics today: compromise is surrender. Never surrender.
A dialog about the project that offers ways to reach common ground on the scope of work and the price is constructive and should not be completely rejected out of hand.
Gary Rifkin was right, you have a great blog.
I agree with you about the problem with politics, Bill. But even in negotiations where compromise is ultimately necessary and the best way for things to move forward, you can’t get what you want if you’re not willing to say “no.”
This is a lesson I’ve had a very hard time learning, but I am getting better at it. Well written.
Phil
There is always a “bottom line” in business and your article captures how to approach it well. Price is seldom the determining factor in any negotiation: it’s value. the value of your brand, your reputation, your solution.
Your customer has an itch that needs scratching; a problem that needs fixing. If you’ve made your value proposition clear enough then you’ll be the obvious choice. It’s the nature of negotiation to test your resolve (usually on price).
Having managed major projects, it’s the project and your reputation that suffer by saying “yes” too early, too cheaply, or with too little time to execute.
Loved this one! Thanks Bruce!
I have made a lot of money over the years with the “take away close”. As soon as they hear “No, you can not have it” they want it. Takes guts – but – no guts no…
Bruce, you’re one of the writers whose messages reach me just when I need them the most (another is our brilliant friend Simon Bailey). I’m making big changes in 2014, and I’m worried about the resistance I will get from present and future clients. Your story gives me the confidence that I’m doing the right thing. And I won’t compromise. And I will grow my biz because of it. I’ll have to say “no” a lot to keep from selling myself short, but I’m ready.
Superb insight on living life on your own terms!!
I have been getting your posts are do not usually have time to read. For some reason, this one called out to me and I am so glad it did. I have always had a hard time saying no and now I am learning to say no firmly when it means I am not able to do it whether it is attending a meeting or lowering a price or whatever the situation. It is a real stress reducer and when that happens, life changes. Thank you for an excellent, well-wriiten, easy to understand commentary about the word “no”. It is not even a matter of the take away and most of us know, the take away most often works when it is sincere, it is really quite simple: say no when you want it to be a no and in short order, you will be accepted for your integrity.