negotiation

Negotiation

Purpose

Get a deal closed on terms you can defend without eroding price. Every concession is traded for something that improves the deal — never given to "get to yes."

Inputs

• The specific ask (discount %, terms, what the buyer wants)
• Deal value, products/SKUs in play, and your floor (walk-away price/terms)
• The value drivers and pains already established — your leverage to re-sell
• Open objections and what the buyer has already committed to

Method

1. Diagnose before you respond. Don't react to the number. Find out why: is it budget, a competing quote, internal approval theater, or a test? The right response differs for each. Ask: "Help me understand — is this a budget ceiling, or are you comparing against another option?"
2. Anchor first, anchor high. Whoever frames the number first sets the range. Lead with full price tied to the value/ROI you established — never open with a discount. If they anchor low, re-anchor to value before discussing the gap; don't negotiate against their number.
3. Trade, don't cave. Never give a concession without getting something back. The rule is "If… then…": "If you can do X, then I can do Y." A unilateral discount trains the buyer that your price is fiction and that pushing harder pays.
4. Re-sell value to protect price. Before conceding a cent, return to the cost of the problem and the value of the outcome. Reframe price as a fraction of the value delivered: "The discount you're asking for is $Z; the problem we discussed is costing you $Z every month." Make price feel small against the stakes.
5. Climb the concession ladder. When you must move on price, extract value in return, working from cheapest-for-them to most valuable-for-you. Ask for these (roughly in order):
   • Longer term length — multi-year commitment for the discount
   • Upfront / annual payment — paid annually or in advance, not monthly
   • Case study / logo rights — public reference or quote
   • References / intros — referenceable calls, intro to other teams/divisions
   • Expansion commitment — committed path to more seats/products/usage Give the smallest price move that closes, and only in exchange for a rung.
6. Recognize manufactured urgency. "We need a decision by Friday" is often a tactic to pressure a discount. Test it: "What happens Friday?" If the deadline is real (board approval, fiscal year), it's leverage you can trade against. If it evaporates under one question, it's manufactured — don't pay for a fake clock.
7. Plan give/gets before the call. Map every concession to its return. Never improvise a discount live.