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Most B2B sellers know to prepare for an important sales call. But when the deal reaches negotiation, preparation often becomes surprisingly informal. They know the price they quoted, have some idea of what the customer may push back on, and know what they would prefer not to give away. That is not an effective strategy.
In fact, both sellers and customers frequently enter negotiations underprepared. For the seller, thorough preparation creates an opportunity to guide the negotiation much more effectively. And that preparation begins with understanding what kind of negotiation you are having.
There is a tendency to think of negotiation as a contest: If I concede something, you won. If I hold my ground, I won. That may make sense in certain negotiations. It makes very little sense in most B2B sales.
The seller and buyer have presumably spent weeks or months establishing the problem, evaluating the solution, and determining that there is enough value to move forward. By the time they reach negotiation, they should already have substantial common ground. The objective is a win-win outcome in which both sides can say they reached an acceptable agreement.
Chris Voss's Never Split the Difference has become enormously popular in sales circles, and many of the techniques he describes are valuable. But what people sometimes fail to remember is the context in which those techniques were developed. Voss built his expertise negotiating hostage situations for the FBI, where the person on the other side was inherently an adversary. A B2B buyer considering doing business with you is not. Confusing the two can turn a collaborative negotiation into unnecessary arm wrestling.
Before identifying what remains negotiable, capture what the seller and customer have already agreed to. If you have reached a legitimate negotiation, there should be quite a bit:
When the negotiation begins, review that common ground with the buyer and check your understanding. Now you are beginning from a position of agreement rather than disagreement.
One of the most persistent mistakes sellers make is assuming negotiation equals price. Price may be one issue, but implementation timing, services, guarantees and other elements may also be negotiable.
Before the conversation, identify those issues and establish three positions for each:
The walk-away point establishes a clear boundary before the negotiation begins. While it is often easiest to define in terms of price, sellers should also consider whether there are limits around services, implementation timing, guarantees, or other terms. Preparing these boundaries in advance helps the seller enter the conversation with a clear plan.
Once both parties have confirmed what has already been agreed upon, move through the remaining issues deliberately. Start with the least controversial and continue assembling agreement before addressing the most difficult issue, which may or may not be price.
By the time you reach it, the conversation is no longer defined by a single disagreement. Both parties can see everything they have already agreed upon and what they stand to gain from reaching a final agreement.
This is not a trick or manipulation. It is simply a more productive way for two parties to make a decision together.
Procurement professionals have a job to do, and part of that job is controlling what the organization spends. In many cases, they need to demonstrate that they improved the commercial terms of an agreement. Sellers who enter that conversation determined to concede nothing are setting themselves up for an unnecessary battle.
Plan for procurement long before the final negotiation. Know what you may be willing to give, whether that is a price concession, additional service, change in implementation timing or something else that provides a win without damaging the economics of the deal.
At the same time, establish the value of your solution so clearly (throughout the sales process) that procurement cannot reduce the decision to interchangeable alternatives. You may still need to give them something. Know what that something could be before they ask.
Effective sales negotiation is not about memorizing clever tactics for the moment a buyer asks for 10% off. It is about knowing what has already been agreed upon, what remains negotiable, what outcomes you will pursue, where your boundaries are, and in what order the issues should be addressed.
The objective is not for either party to feel like they beat the other. Both should leave believing they reached a good agreement.
Funnel Clarity’s Negotiate a Win-Win© sales negotiation training gives sellers, account managers, renewal teams and others research-supported techniques for preparing for and executing collaborative negotiations while protecting the value of the deal. Learn more about the training program.
