Let sleeping dogs lie?

Your company has been doing well in recent years, and revenues have skyrocketed. 🚀 However, during the last negotiation with one of your strategic suppliers called Dogsleep Ltd, you made a promise to increase volumes by 10%.

The reason was that by promising volume increases you could mitigate the cost impact brought on by inflation.

Sharing bad news is part of many negotiations.

Unfortunately, due to a (mild)recession of the economy and demand, the volumes have not grown but dropped compared to last year.

Some suppliers have already approached you about volume predictions, while Dogsleep Ltd, the supplier you offered additional volumes to, has not yet made contact. You are unsure whether to wait for them to contact you or to proactively reach out to Dogsleep Ltd.

Sharing bad news is part of many negotiations. In this article, we explore whether to share bad news upfront or wait for the other party to ask about it.

As a general rule, it's often best to be proactive.

In this situation, it’s essential to consider the specific circumstances and the relationship you have with Dogsleep Ltd. However, as a general rule, it’s often best to be proactive and address the issue head-on.

Waiting for Dogsleep Ltd to contact you could create unnecessary tension and mistrust. Some argue that maybe they didn’t notice and that ‘let sleeping dogs lie’ is the best strategy. But seriously, do you think that Dogsleep Ltd didn’t notice the drop in volumes? Every business monitors its revenue.
Proactively reaching out to them and explaining the situation demonstrates transparency and a willingness to work together towards a solution. This approach shows that you are taking responsibility for the situation and are interested in working together to find a solution.
When contacting Dogsleep Ltd, it’s essential to be honest and transparent about the situation. Explain that the volume projections made during the last negotiation have not materialized due to a drop in demand. Don’t forget to emphasize the importance of the relationship and the desire to cooperate to find a mutually beneficial solution.
When creating the agenda for the meeting you should make sure that the emotion of missing volumes is addressed at the beginning, not at the end. Bad news should be delivered directly after the welcome and the chitchat part of the meeting.

Proactive communication and transparency are key.

In conclusion, proactive communication and transparency are key, especially when dealing with important suppliers. Don’t assume suppliers won’t know what is going on. Share bad news as soon as you can, because it allows you to find a solution together.

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