Walk-Away Point Definition

In business, a walk-away point is the minimum acceptable level of profit or the maximum acceptable level of loss. It is the point at which a company will no longer continue to negotiate with a potential customer or supplier.

A walk-away point can be determined by a number of factors, including the company’s cost of goods, overhead costs, and desired profit margin. It is also influenced by the market conditions and the perceived value of the product or service being offered. The walk-away point is usually set by senior management after taking all of these factors into consideration.

Once the walk-away point has been set, it is important for salespeople and negotiators to be aware of it so that they do not agree to terms that are below this threshold. If a company agrees to terms that are below its walk-away point, it may end up making a loss on the deal.