In collections, it’s imperative to set up win-win negotiations in order to maintain the goodwill of the customer. For example, here’s a story of two friends who had been in business together as equal partners for many years. When one made a decision to retire, he didn’t want to jeopardize their friendship by fighting over the business. As a solution, one partner agreed to set the selling price of the company and the other agreed to set the terms of the sale. Then, each drew straws to determine who would be the buyer and who would be the seller.
This is a perfect example of a win-win negotiation. Since neither partner knew which one would end up the owner, each tried to structure as fair a deal as possible. Consequently, a very large business deal was consummated and the two longtime partners remained friends. Continue reading