Negotiation - Use of Threats versus Strategic Partnership (updated)

http://theaccidentalnegotiator.com

I read with interest blog about the strategy of using threats from the the above link. Threats and counter threats are always on the negotiation table no matter how the negotiation goes. Overall, I fully agreed to the information on this article contained in the link blog attach.

However.....

I tend to view a supplier - customer relationship just like a married couple or a man or woman with his or her mistress. Unlike a husband and wife with children in tow relationship where the relation are already filled with objectives to be met and how both partners want the child to grow up and how to ensure their relationship growth further with trust and fulfilled promises.

So when we negotiate, the common interest will be:-

a) Volume of business involved
b) Quality and material specifications
c)  Price of the material
d) How much the business meant to both parties
e) How the profit margin for both sides, how much the profit the supplier will gain and how much profit the customer will have by using the material

Just like the mistress who may feel unhappy if the "contributions" are not to expectations and she or him need to instead of receiving "profits", they need to reduce the gain or even just break even in order to keep the business.

Thus, threat is good to gauge how good the threat meant to each parties and also is it real and most importantly one of the party or both will walk away if the threat on the table is "too much". No commitment on long term, so it time to wind up the partnership.

Just like the mistress.

My thought is for threat to be made, make it clear what is at stake and if the threat a camouflaging strategy. Threat can be used in a strategic manner in which both parties lay the card on the table what at stake and how to resolve these threat to the business.

This will encourage a strategic thinking on how to resolve the issue and come up with a winnable solution for both parties, just like a good husband and wife team. But then, husband and wife do divorce too right but that will be the last resort.......mistress just walk away if she or him not comfortable with the threat.

My point is when having a supplier - buyer relationship, it is good to identify a supplier who you able to "married" to and trust and will work hand in hand with your organization. Threat will then be view by both parties as opportunity to explore for improvement in the process of business.

A supplier who will rather behaved like a "mistress" if you can managed to identify them, threat to these supplier will be taken into full blown account and the key objective will be how much benefit will be derived to accept any offer for renewal and if the benefit is not "attractive" these supplier will walk away or reduce the businesses.