Often, the strongest position in a negotiation is realizing you have nothing to lose.

So when a college senior just looking for a few extra credits went head-to-head in a high-stakes mock negotiation with an opposing group threatening automatic failure unless he signed their outrageous demands, he calmly let them play out their bluff.

That’s when the real business lesson kicked in.

Keep reading for the full story.

College class not required

My friend was in college and needed a couple more credits to be a full-time student.

There weren’t any other classes available that semester that applied toward his major, so he decided to just take a class that interested him.

I don’t remember what his major was, but the class he chose was part of the business curriculum.

There were no problems for most of the year until the last assignment came up.

This would prove to be one of the most taxing projects of the entire semester.

The teacher explained that for the last project, everyone would be splitting up into groups of five or six people.

This assignment was worth 50% of your grade. If you didn’t complete it, it was an automatic fail.

The class split up and were assigned roles. There were management groups and worker groups.

The class moved forward with a serious of mock negotiations of sorts.

A management group would be teamed up with a worker group, and a contract had to be completed as if the workers and the managers worked at the same company.

The workers were to negotiate the best deal for themselves (more money, time off, benefits, etc.), while the managers were to try to get them for the least amount they could.

My friend was in a management group.

A lead negotiator was to be chosen from each group. No one in his group wanted to, so he volunteered. They sat at a table on opposing sides and started.

Fred—my friend.
Leo—lead negotiator for workers.
Chad—one of the people in his group.

Leo was driving a hard bargain.

Leo: “If you don’t agree to all our demands, we won’t sign the contract, and you will fail.”

Fred: “Ok. How about you write down what you want, and we will go from there.”

They went to a table nearby and started writing down different things.

Chad: “We need a contract to pass the class.”

Fred: “Don’t worry. We’ll have one.”

After a couple of minutes, they returned.

Leo lists their demands, but Fred pushes back.

Leo: “This is what we want. $200 an hour, eight weeks vacation, eight weeks sick time, all insurance paid by company, and no matter what we do . . . you can’t fire us.”

Fred: “Nope. I don’t agree. I’m not signing.”

Leo: “If you don’t sign, you will fail the class.”

Fred: “So will you.”

Leo: “Fine by me.”

That’s when Fred revealed just how little he had to lose in this whole ordeal.

Fred: “Ok. Just keep in mind, I don’t need this class to graduate. Whereas it seems you do from the look on your face.” (His eyes opened really wide, and his mouth dropped open.)

Leo: “If you don’t need this class, why are you here?”

Fred: “I needed a couple extra credits, and this class caught my attention, so I figured I’d give it a try. Now how about a more reasonable contract?”

So Leo continued to tread water and came back with a new contract.

Leo: “Uh, if I don’t like it, I’m still not signing.” (They walked away from the table to re-write the contract.)

Chad: “You may not need this class, but the rest of us do. We need a signed contract.”

Fred: “Don’t worry. We WILL have one.”

They came back with the numbers reduced.

Still, Fred wasn’t satisfied.

Fred: “Nope. I’m not signing this either.”

As time passed, the worker group was becoming more and more agitated. After a couple more drafts, they sat at the table.

Leo: “By law we are entitled to this.”

Fred: “Ok, you can have that.”

Leo: “And we are also entitled to this.”

No can do.

Fred: “Yup, that’s not a problem.”

(They wrote down the basics of what workers need.)

Leo: “Are you ok with this?”

Fred: “Yes. I’m ready to sign if you are.”

Clearly the teacher was impressed by Fred’s strategy.

The teacher announced that everyone had a contract by the end of the class and no one automatically failed.

Then the teacher said with a smile, “But within the groups, you know which side did better.”

Fred sure is a shrewd negotiator!

What did Reddit think?

Many workers don’t seem to grasp their full power.

Leverage is an amazing thing to have,

Not everyone comes out on the right side of a negotiation.

When you bluff without leverage, don’t be surprised when someone calls it.

This college student understood the assignment — literally!

If you liked that post, check out this post about a woman who tracked down a contractor who tried to vanish without a trace.