Define Your Walk-Away Point

5 Min

Avoid the endowment effect.

Define your walk-away point ahead of time.

To define your walk-away points:

1. Revisit your concessions list

Revisit your list of concessions that you’d be willing to make. How far could prospects push each of these concessions before you’d draw the line? This might be anything beyond a 10% discount. Or it might be anything less than a six-month contract.

2. Set walk-away points

Set that line you drew – whether it’s on your discount, timeline, service, or bundle – as the limit for that concession. No matter how big the deal, or how great the relationship, you should never accept a request beyond this point.

3. Define dealbreakers

You can’t put a number on some walk-away points. For example, you may have certain company policies you can’t violate, or ethical practices you’d never compromise. Add these to your list. And consider your future relationship: if a prospect costs you more time than the deal is worth, they probably won’t change once they’re a client. Set a time limit on what you’re willing to invest in a deal.

No prospect is worth degrading the value of your business. Define your walk-away points accordingly.

Time for a quiz.

Sean has put a ton of work into a deal, but the prospect’s requests seem to just keep adding up. He’s reached a 40-hour limit that he put for himself on deals of this size. But all that work has made Sean determined to see this one through.

What should Sean do?

Quiz 1 of 1

Sean has reached his 40-hour limit. What should he do?

a
Persevere to get this deal over the line. He’s put too much time into it already.
b
Tolerate his prospect’s requests. Every prospect relationship is worthwhile.
c
Walk away from this prospect. They’re likely not going to be any less time-consuming as clients.
d
Give his prospect an ultimatum: They need to shape up or he won’t be so accommodating.

The correct answer is C.

Sean should walk away: the amount of money he’d make on the sale wouldn’t make up for any time he invests past 40 hours.

Take the next step:

Download the Walk-Away Worksheet on the following card. Use it to set the non-negotiables for your business.

Lesson complete