[AndyYSCISOdept]

If you don't position it well, then yes. It's key to know the merchant's other options before the negotiation phase.

To me the greater risk is all of the money left on the table by merchants that would have been willing to pay more.

One 12-point deal for 100K is worth the same as three 4-point deals.

Plus, you can always back down on rate or fees (unless you push too hard).

Okay, here are two issues I see.
1. Knowing the merchants other options - Someone told me a long time ago two things are guaranteed merchants lie and brokers lie to merchants.
2. Backing down on the fee or the rate - I have found that a lot of times going to high off the bat never allows you to get to the point of "backing down" because, and this is from the merchants I have spoken with about this issue, they feel like the broker tried to take them to the cleaners instead of giving them the best option possible upfront.

[Zach]

Okay, here are two issues I see.
1. Knowing the merchants other options - Someone told me a long time ago two things are guaranteed merchants lie and brokers lie to merchants.
2. Backing down on the fee or the rate - I have found that a lot of times going to high off the bat never allows you to get to the point of "backing down" because, and this is from the merchants I have spoken with about this issue, they feel like the broker tried to take them to the cleaners instead of giving them the best option possible upfront.

#1: Check the credit report for competitor pulls and ask the client about them. Say that you need to know what offer they presented so you can be as effective as possible for them. Ask them why they didn't move forward on that offer.

#2: It is certain that you will lose some deals by employing this strategy. However, the deals that close will be much higher revenue, which will cover any deals you may have lost (and leave you with a net gain).