What are your limits?

Do you have limits when you are negotiating a business deal? Chances are good that you do have some limits because, unless you have complete authority, you have been instructed as to where you are allowed to go and where you have to draw the line.

Some limits you probably have:

• Budget limits
• Maximum/minimum price
• Need for director approval
• Credit amount limit
• Company and standard terms and conditions
• Company secrets
• Warranty limits

Having limits is a positive thing in a business negotiation because it creates power for you. When you have limited authority, the other party is forced to work within your limits or have to walk away from a deal.

By having limits, real or artificial, you have a face-saving way to test the other party’s resolve. By the same token, the other party can agree to your limits, and save face too. With limits, you know when to say no, and you can say it gracefully because it is not your denial but somebody else’s.

Limited authority makes it so that you don’t have to make concessions in the areas where you have limits (for instance, a policy that cannot be budged). Since you lack the requisite authority to make a change, the change is off the table. As Dr. Chester L. Karrass says: “There is greater strength in not having authority than in having it.”

What kinds of limits do you deal with? Do you find it is helpful or detrimental to your negotiation to have these limits?