Log Rolling

Description:  You and your counterparty are trading different variables to reach an agreement.

Log Rolling is when you trade a variable that is cheap to you for a different variable that you care about, but is cheap them.  When deals have a single variable — usually money — deadlock and conflict is a common result.  More variables give you more options, and log rolling is a great way to leverage your preparation.

A manufacturer with plenty of cash but limited storage space can offer attractive payments terms to a supplier who is tight on cash but has access to cheap warehousing.

Intent:  Maximize the value of a deal.

Style:  Collaborative.

Counter:  If you need to counter this, you have several options.  One is to push for a higher valuation of your variable, or a lower valuation for his.  Alternately, you can try to switch the variables being matched.  If you are still not getting a satisfactory valuation, you can insist on a comprehensive package negotiation.

 

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