Defensive Tactics
Day 8 - Cherry Picking: A Strategic Approach to Concessions
Why This Matters:
Cherry picking isn’t just about choosing the best from a list—it’s a strategy to claw back concessions and test the value of each item on the table. Perhaps you’ve realized you’ve been sliced, or you’re operating under the “nothing is agreed until everything is agreed” principle. Now’s the time to review their wish list and gauge their responses to each item.
The Strategy:
When you unbundle specific components of their offer—particularly those that seem valuable to them—you signal your disinterest or willingness to remove them. Watch how they react. Their discomfort could reveal what’s truly important, giving you leverage to negotiate better terms elsewhere.
Corporate Example:
Let’s say they’re asking for a 4% rebate, free same-day shipping, multiple account reps for every location, and increased insurance coverage. You don’t need to remove or threaten to eliminate any of these requests outright unless it’s necessary. Instead, put conditions on the more expensive asks.
For instance:
• The 4% rebate could be contingent on them ordering a certain amount per year. If they don’t meet that threshold, the rebate is adjusted.
• Free shipping might only be viable with a minimum order amount. If they need the order regardless, you can still organize everything but with the minimum price intact (and they still get their rebate).
Be On the Watch:
Seeing how they respond to each wish list item tells you which ones hold the most value for them. And sometimes, what’s valuable to them isn’t actually that expensive for you. This is where you can find opportunities to chip away at less crucial points while maintaining or even improving your margins.
Questions to Ponder:
• How often do you evaluate the value of concessions from your client’s perspective?
• Have you successfully used cherry picking to refine a deal to your advantage?
Let’s discuss: Have you tried this tactic, or has it been used against you?
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