Limited Authority: How to Make it Work for You

One common negotiation technique for responding to an offer is deferring to a higher authority.

Professional buyers use the lack of authority to put time between the offer and the response. They simply state they don’t have the authority to accept a final deal.  The benefit of deferring to a higher authority is that it gives you time to evaluate the offer and compare it to the alternatives. This simple pause can prevent you from making a poor decision

There is a good argument for NOT being the decision maker. When you are in the position of authority, and you face even the slightest pressure you are more likely to make unnecessary concessions, often when you shouldn’t.

There is an option to defer authority even if you are a small business owner or entrepreneur of one. Establish an approval process. A process that requires impartial review and feedback from a trusted resource before accepting ANY offer. Some options include:

• Create your own advisory board or pricing team

• Appoint a financial officer (this could be your accountant, spouse, or partner)

• Reach out for a business mentor - consider reaching out to a resource like SCORE (Service Corp of Retired Executives )

• Hire a negotiation coach

Negotiating can be stressful. Give yourself time to evaluate the offer and consider your alternatives.  Limited authority is one method of ensuring you take time to complete a full evaluation.

Negotiation Tip

Limit Your Authority: Lack of authority puts time between you and accepting an offer. Giving you time to compare the offer to the alternatives.  It may keep you from making a costly decision.

Want to explore more about how to prepare for your next negotiation?  Check out the Negotiation Guide – Roadmap to Success.

To get your copy select the “contact now” button, fill out the form and use this for the subject line  “Request for the  Roadmap to Success pdf.”