Sales Negotiation

Negotiation begins before the commercial conversation. How you sell determines what you can negotiate. A seller who has built strong value, a clear champion, and quantified ROI negotiates from strength. A seller who has not, negotiates on price alone — and loses margin every time.

Core Principles

Value before price. Never enter a price negotiation before the buyer has confirmed the value of the outcome. If the ROI is clear, price is a procurement exercise. If the ROI is unclear, price is the whole conversation.

Negotiate the whole deal, not just price. Price is one variable. Others include: payment terms, contract length, scope, implementation support, SLAs, renewal terms. Trading across variables protects margin.

Every concession has a price. Never give something for nothing. Every concession, however small, must be exchanged for something of value — even if that value is commitment or timeline acceleration.

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Anchoring

The first number sets the frame. Anchor high (or firm) and move deliberately.

• Present your full price first. Discounting immediately signals that your price was not real.
• When the buyer anchors low, don't react — acknowledge and reframe to value: "I understand that's your target. Help me understand — what's driving that number?"
• Counter-anchor: return with your position, justified by value, not by splitting the difference

The midpoint fallacy: Buyers expect you to meet in the middle. If you anchor correctly and move minimally, the midpoint works in your favour.

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Concession Strategy

Plan your concessions before the negotiation. Know in advance:

• What you will not move on (price floor, scope minimums, legal terms)
• What you can trade (payment terms, onboarding, training, contract length)
• What order you will concede in, and what you will ask for in return

Concession size matters. Large early concessions signal that more is available. Small, reluctant concessions signal you are near your limit.

Concession	Ask in Return
5% price reduction	Signature by end of quarter
Extended payment terms	Multi-year contract
Free onboarding	Reference / case study
Reduced implementation fee	Larger initial licence
Additional user licences	Procurement approval this week

Never give a discount without a condition. "I can get to that price, but I'd need your signature by Friday" is a concession. "I can get to that price" is a surrender.

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Procurement Negotiations

When procurement enters the process:

• Understand their mandate: are they optimising for price, risk reduction, or process compliance?
• Procurement negotiates on price; your champion negotiates on value — stay close to your champion
• Separate commercial from legal: run tracks in parallel where possible
• Know your walk-away: what terms make this deal uneconomic?

Procurement tactics to expect:

• "We're going with your competitor unless you match their price" — verify before responding
• "We need X% off to get this approved" — ask what approval process they're referring to
• "We don't pay for Y" — return to the business case, reframe Y as the value driver
• Silence after your final offer — hold your position; silence is a tactic

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Closing

Closing is not a technique applied at the end. It is the natural result of a well-run sale.

Closing questions:

• "What would need to be true for you to move forward?"
• "What's standing between us and a decision this quarter?"
• "If we can resolve [open issue], are you ready to proceed?"

Mutual close plan: A shared document listing all remaining steps, owners, and dates to get to signed contract. Get the buyer to co-create it. Their engagement in the plan is a commitment signal.

The assumptive close: Move the conversation to implementation. "When your team is onboarded, we'll typically start with X…" — treats the decision as made, surfaces any remaining objections.

When to walk away: If the buyer's required terms make the deal unprofitable or set a damaging precedent, walking away is a commercial discipline. Announce it calmly, leave the door open, and mean it.