The Last Penny | Balancing Deals and Relationships in Negotiation

A practical conversation with John Lowry on the “Last Penny” negotiation tactic and how small concessions can protect relationships and create long-term value.

What We Explored in This Episode

In this episode of The Negotiation Club Podcast, Philip Brown is joined by John Lowry to explore the Last Penny negotiation tactic—a concept that sits at the intersection of commercial discipline and relationship management.

The discussion examines how negotiators decide when to hold firm and when to yield, particularly in situations where the financial value at stake is small but the relational impact can be significant.

When Winning the Deal Costs the Relationship

John shares a story from one of his mentors involving the attempted purchase of a $15,000 furniture set from a retailer operating under a strict “no negotiation” policy. Despite repeated efforts, even a minor concession, such as a $14.99 repair pen, was refused.

While the sale went through, the experience left the buyer dissatisfied and unwilling to return. The episode uses this example to illustrate how rigid adherence to policy or principle can secure a transaction but quietly destroy future value.

The Logic Behind the “Last Penny” Tactic

At the heart of the conversation is the idea that yielding the last penny can be a strategic investment rather than a weakness. John references a quote attributed to J. Paul Getty, capturing the risk of insisting on extracting every possible gain at the expense of future opportunities.

The tactic focuses on timing and intent, offering a small, often symbolic concession at the right moment to allow the other party to feel they have “won,” even when the commercial impact is minimal.

Sophisticated negotiators understand that perceived wins shape memory, trust, and willingness to engage again.

Turning the Tactic into Practice

To practise the Last Penny tactic, focus on identifying points in your negotiations where the remaining gap is small but emotionally charged.

Before closing, ask yourself:

1. What does the other party need to feel satisfied?
2. What concession would feel meaningful to them but low-cost to you?

A dedicated Negotiation Card on the Last Penny tactic has been created to help practitioners practise the timing and psychological nuance involved in making these final concessions deliberately rather than instinctively.

Used well, this approach helps balance substance with relationship-building—without undermining commercial credibility.

JOHN'S BOOK "Negotiation Made Simple"

While you're exploring, consider checking out John Lowry’s acclaimed book, Negotiation Made Simple, which is packed with practical advice and expert insights. You can also tune into John's podcast, Negotiation Made Simple, for more in-depth discussions on mastering the art of negotiation.

Don't miss out on these resources to enhance your negotiation toolkit!