The Book of Real-World Negotiations

7Walking the Negotiation Tightrope between Short-Term Needs and Developing Long-Term Relationships

Based on an interview with Seth Goodman

Anytime a new entity takes over a key relationship, there are sure to be many negotiations to follow. Some of those negotiations will be easier than others. For all those negotiations, however, the short-term needs must be balanced with cultivating the long-term relationships. If that happens the most beneficial arrangement will appear, but it is easier said than done.

This was the case in the example below, where a company took on the representation of a larger entity and had to negotiate a series of contracts with a subcontractor. In the end the parties reached a successful pact that benefitted them both, but it required a few risky moves and the sending of certain signals by the new representative to the other negotiator. While there was a lot of room for misinterpretation, the parties managed their way through these tests and reset the relationship to everyone's satisfaction.

Background and the Negotiation Challenge

Rambling Recyclers (RR) is a midsize national waste and recycling company based in the Southeast. RR has been growing steadily since it was formed and serves as a single point of contact for larger companies to manage all their waste needs. They do this through a unique networking model that has proven to be very effective.

Recently RR was awarded a national service contract with a very big food manufacturer, called Savory ...