Having observed a large number of fee negotiations I have come across some great situations and quotes. Here are some of them and my comments:
Party A: “I won’t accept anything less than a 12% discount”
Party B: “But I have already offered you 15%!”
– A should have listened, B should have agreed to 12%
“Here is my first final offer ……..”
– and what is your final, final offer?
Party A delivers an elaborate, detailed opening offer. A had clearly prepared well and taken great pains to get this just right.
Party B’s response: “Fine“
– A obviously didn’t go for anything ambitious, B took the money and ran (but could have gotten more and make A feel better about the agreement)
Party A: “Based on our standard rates we would quote 375,000, but given the specifics of this deal we are willing to offer a 12.5% discount”
Party B: “Look – if you can go down to 345,000 we have a deal“
– do your maths – B could have closed at 328,000
Party A: “Our final offer...”
Party B interrupts: “Your offer is only final when we accept it!”
– damn right it is (actually this quote come from the TV series “The Good Wife”)
Party A: “We are hoping that 250,000 would be OK for you, but we are flexible…..”
Party B just looked at A (stunned because she didn’t expect something this favourable).
Party A: “Look I could give you a 10% discount” (couldn’t stand the silence)
Party B: ” You are going to have to do better!” (B decided she had nothing to lose)
Party A: “Would 15% do?”
Party B: “Well – we are getting close. Make it 20% and I may be able to get approval
(worried that any lower would kill the deal)
– Lambs to the slaughter. Can you count the floppies? Party B was expecting to have to pay 450,000 or more.
If you have any good quotes or examples feel free to send them to me