Negotiation Tips: From the Experts

Negotiation is a nuanced art, especially in sales, where each conversation shapes not just the immediate deal but the relationship with the customer. The top experts have spent years fine-tuning strategies that go beyond price haggling, focusing instead on long-term value and understanding. Here are five valuable tips, each inspired by a different expert in sales literature.

1. Always Create a Win-Win Situation – Stephen Covey

Stephen Covey, in The 7 Habits of Highly Effective People, teaches the importance of “thinking win-win.” In essence, win-win isn’t a soft approach; it’s about genuinely seeking mutual benefit, which often leads to stronger, more sustainable relationships. Covey explains that in business, every party has a unique set of needs and objectives. When you’re genuinely invested in helping the other side achieve their goals, they’re much more likely to be invested in helping you achieve yours.

How to Apply It:

In a negotiation, try to uncover your counterpart’s primary concerns and priorities. Ask questions that go beyond surface-level needs, such as “What would make this solution most valuable to your team?” or “What’s a critical factor in helping you achieve success this quarter?” By identifying areas of shared interest, you can propose solutions that address both sides’ needs. For instance, if your client values long-term support, you might offer an extended service package that benefits them and secures future business for you.

Why It Works:

People are naturally more receptive to a deal when they feel like their interests are genuinely understood and respected. This approach can also reduce friction during negotiations, as it shifts the conversation from adversarial to collaborative, making it more likely that both parties leave the table satisfied.

2. Use Silence as a Tool – Chris Voss

Chris Voss, a former FBI hostage negotiator, brings a unique perspective to negotiation. In Never Split the Difference, he reveals that silence is not just a void to be filled; it’s a powerful communication tool. According to Voss, silence creates an unspoken invitation for the other party to offer more information or clarify their stance. When you resist the urge to immediately respond, you convey calmness and confidence, prompting the other party to reconsider their initial position or share something they hadn’t intended to reveal.

How to Apply It:

After asking a critical question or making an offer, pause. For example, you might say, “What do you think of this proposal?” and then stay silent. The silence can feel uncomfortable, but avoid the temptation to fill it. This pause often leads to the other person elaborating or reconsidering aspects of their position that could work in your favour.

Why It Works:

Silence plays on a natural human discomfort with prolonged quiet, particularly in high-stakes situations. People will often rush to fill silence by sharing additional thoughts or by attempting to break any perceived tension, sometimes even making concessions. Silence, when used judiciously, is a subtle yet effective way to encourage your counterpart to open up, giving you an informational advantage.

3. Set a Clear BATNA (Best Alternative to a Negotiated Agreement) – Roger Fisher and William Ury

In Getting to Yes, Roger Fisher and William Ury introduce the concept of a BATNA, a cornerstone of effective negotiation. Your BATNA is essentially your “Plan B”—the best possible outcome you can achieve if the negotiation fails. Knowing your BATNA allows you to approach negotiations with confidence, as you’re clear on the point at which you’ll walk away if the deal isn’t favourable. This clarity also makes it easier to avoid unnecessary concessions out of fear or uncertainty.

How to Apply It:

Before entering a negotiation, take the time to analyse and define your BATNA. For instance, if you’re negotiating a contract for a client and your BATNA is a similar deal with another company, calculate its value carefully. Also, consider the costs and implications of walking away. If you know your BATNA is strong, you’ll be less likely to make concessions that compromise your interests.

Why It Works:

Knowing your BATNA boosts your leverage because it enables you to negotiate from a position of strength rather than desperation. If you know you have a solid fallback option, you’re less inclined to settle for an unfavourable outcome. A clear BATNA gives you the freedom to pursue a genuinely favourable outcome, knowing you have an alternative in place if negotiations don’t go as planned.

4. Identify and Frame the Other Party’s Interests, Not Just Their Position – Herb Cohen

Herb Cohen, in his book You Can Negotiate Anything, distinguishes between positions and interests, which is vital in uncovering what really matters to the other party. Often, people get stuck on positions (such as a specific price) and don’t explore the interests driving that position (such as budget limitations or a need for faster ROI). By uncovering these underlying interests, you can often address your counterpart’s real needs without compromising your own position.

How to Apply It:

Ask open-ended questions that encourage the other party to share their interests. Instead of simply discussing numbers, you might ask, “What’s most important for you in this agreement?” or “Are there specific outcomes you’re hoping to achieve?” As they open up, frame your responses to directly address these deeper needs, potentially with creative solutions that add value without reducing your offer. For example, if they value speed over cost, propose an expedited timeline with additional benefits instead of just dropping the price.

Why It Works:

When you address interests rather than just positions, you create flexibility in the negotiation. You’re no longer stuck in a rigid back-and-forth; instead, you can identify alternatives that might fulfil their underlying needs in unexpected ways. This approach shows empathy and understanding, often leading to better outcomes on both sides.

5. Anchor High to Shape Expectations – Dr. Robert Cialdini

In Influence: The Psychology of Persuasion, Dr. Robert Cialdini introduces the anchoring effect, a principle that suggests the initial figure or position presented can significantly influence the rest of the negotiation. Anchoring high (presenting an optimistic or premium price) can create an advantageous reference point, often prompting the other side to counter closer to your starting point. Done correctly, anchoring gives you the flexibility to make concessions while still achieving a favourable outcome.

How to Apply It:

Start with a high yet reasonable offer, backed by data or a clear rationale. For example, if you’re selling a service, begin with a price that reflects the full scope of your expertise and benefits, positioning it as a premium option. After setting this anchor, you can make calculated concessions if necessary, which the other side perceives as a win, while still maintaining profitability.

Why It Works:

Anchoring taps into basic psychology. When people see a higher initial price, their perception of value adjusts upward. Even if they negotiate down, they’ll often land closer to your ideal range than if you had started lower. Anchoring also communicates confidence in your offering, which can positively shape the other party’s perception of your value.

Negotiation success lies in understanding both human psychology and strategy. Each of these tips offers a different lens on how to approach discussions with confidence, empathy, and focus. By thinking win-win, using silence, knowing your BATNA, understanding underlying interests, and anchoring high, you can significantly improve your negotiation outcomes. These techniques empower you to create agreements that don’t just satisfy immediate goals but foster long-term trust and collaboration.