The Person Who Needs the Deal Least Usually Controls It

Corey Flores here checking in from Geneva, Switzerland.

Geneva is a place where some incredibly important negotiations have taken place over the years. Governments, banks, international organizations and business leaders have all sat across tables here trying to find terms everybody can live with.

Being here got me thinking about how much of business is really negotiation.

We negotiate contracts.

Salaries.

Partnerships.

Pricing.

Real estate.

Vendor agreements.

Deadlines.

Payment terms.

Acquisitions.

Even internally, we're constantly negotiating priorities and resources.

I've negotiated a lot of deals over the years. Some went exactly how I wanted. Some didn't. A few taught me lessons I probably couldn't have learned any other way.

One thing I have become convinced of is this:

The person who desperately needs the deal is usually negotiating from a disadvantage.

That doesn't mean acting uninterested.

It means building enough options that you don't have to accept something that doesn't make sense.

Desperation Is Expensive

You can feel desperation in a negotiation.

The salesperson needs the commission.

The business needs the customer.

The employee needs the job.

The seller needs the transaction to close.

Once the other side realizes you can't afford to walk away, the conversation changes.

Terms start moving.

More gets requested.

Deadlines suddenly become urgent.

Things you said were non-negotiable somehow become negotiable.

I've learned that one of the best ways to become a better negotiator has almost nothing to do with what happens at the negotiating table.

It happens beforehand.

Build more opportunities.

Build cash reserves.

Build relationships.

Build your pipeline.

Build alternatives.

The more options you have, the easier it becomes to say no to the wrong deal.

Know What Happens If You Don't Agree

Before an important negotiation, I like a very simple question:

What happens if we don't make this deal?

Seriously.

What's Plan B?

If the answer is "we're screwed," that's useful information.

You should know that before sitting down.

Maybe you need another vendor.

Another customer.

Another financing option.

Another candidate.

Another property.

Another partner.

Another source of revenue.

The stronger your alternative, the stronger your position becomes.

Sometimes the greatest negotiating advantage is knowing you have somewhere else to go.

Don't Negotiate Against Yourself

This happens constantly.

You send someone a proposal for $100,000.

They don't respond for two days.

You start thinking:

Maybe it's too expensive.

Maybe I should offer $90,000.

Maybe I should include something else.

Maybe they're talking to somebody cheaper.

Nothing has actually happened.

The other person hasn't even objected yet.

You've started negotiating with yourself.

Silence makes people uncomfortable.

And uncomfortable people tend to fill silence.

Sometimes they fill it with discounts.

Learn to wait.

You don't have to answer every pause.

You don't have to immediately improve your own offer.

Let the other side respond.

Price Is Only One Part of a Deal

People get stuck on price because it's easy to understand.

$100,000.

$90,000.

$80,000.

But a deal has a lot more moving pieces than price.

Payment timing.

Length of agreement.

Scope.

Exclusivity.

Renewal terms.

Ownership.

Volume.

Performance incentives.

Deposits.

Guarantees.

Cancellation rights.

Introductions.

Marketing rights.

Territory.

Future opportunities.

There have been situations where I would rather hold the price and change the structure.

Maybe you can't do $100,000 today.

Could you do $50,000 now and the balance over time?

Maybe you want a lower price.

Can you commit to a longer agreement?

Maybe you want more services.

What can you give in return?

Good negotiation isn't always about dividing a fixed pie.

Sometimes you can change the shape of the deal.

Find Out What They Actually Care About

This is where people leave a lot of money on the table.

They assume the other side values the same things they do.

They might not.

Maybe you care about price.

They care about speed.

Maybe you care about control.

They care about certainty.

Maybe you care about cash upfront.

They care about flexibility.

Maybe you care about the contract value.

They care about being associated with your brand.

Maybe they need the deal completed before the end of the quarter.

You won't know unless you ask questions.

I think some people enter negotiations too excited to explain what they want.

Slow down.

Learn what the other person wants first.

The more you understand their priorities, the more creative you can become.

Ask Better Questions

Some of the best negotiating tools don't sound like negotiating at all.

"What's most important to you here?"

"What problem are you trying to solve?"

"What would make this work?"

"What is holding you back?"

"Is price the issue, or is there something else?"

"If we solved that, would you be comfortable moving forward?"

"What would a successful relationship look like twelve months from now?"

Those questions reveal information.

And information gives you options.

Sometimes you'll discover you're arguing about something the other person barely cares about.

Don't Give Something Away for Nothing

If somebody asks for something, you don't always have to say no.

But you also don't have to simply give it away.

They want a discount?

Maybe you receive something in return.

They want faster delivery?

Maybe the scope changes.

They want exclusivity?

Maybe the commitment becomes larger.

They want better payment terms?

Maybe the agreement becomes longer.

This creates a healthier negotiation.

Instead of constantly conceding, you're trading.

There's a difference.

A concession says:

"I'll give you this."

A trade says:

"If I do this, can you do that?"

Understand the Cost of the Terms

A contract can have a great headline number and terrible economics.

Suppose someone offers you a $1 million agreement.

Sounds incredible.

Then you discover:

Payment takes 120 days.

The scope is unlimited.

They can cancel whenever they want.

You need to hire six people before receiving the first payment.

They want exclusivity.

The margins are thin.

Now that $1 million looks different.

Business owners need to learn to negotiate the entire deal, not celebrate the headline.

A big contract and a good contract are not always the same thing.

Urgency Is Powerful, So Understand Who Created It

"This has to be signed today."

Why?

Sometimes there is a legitimate reason.

Sometimes there isn't.

Deadlines can be useful.

They can also be negotiating tools.

If somebody introduces urgency, understand the reason before allowing it to influence your decision.

The same applies when you're selling.

Artificial pressure can get a deal signed.

But I would rather create legitimate reasons to act.

Inventory is limited.

Pricing changes on a certain date.

Implementation capacity is filling.

An opportunity genuinely expires.

That's different from pretending something disappears at midnight because you want someone to make an emotional decision.

Long-term relationships are built on trust.

Don't Confuse Ego With Negotiation

This one can get expensive.

Sometimes the original issue is $10,000.

Then pride gets involved.

Now neither side wants to move because moving feels like losing.

That's how a small disagreement becomes a massive one.

I've had to learn to separate:

What matters financially?

What matters strategically?

What matters legally?

And what only matters because I don't like the idea of the other person "winning"?

Those aren't the same thing.

You don't need to win every sentence in a contract to win the deal.

Sometimes giving the other side something they care deeply about costs you almost nothing.

That's smart business.

Know Your Non-Negotiables Before You Start

This has helped me.

Before a serious negotiation, decide what you're actually unwilling to accept.

Not during the meeting.

Before.

What price doesn't make sense?

What liability won't you accept?

What ownership rights matter?

What payment terms create too much risk?

What behavior would make you walk away?

What part of your reputation aren't you willing to compromise?

If you don't decide beforehand, emotion can move the line.

A non-negotiable that changes every time somebody pushes isn't really a non-negotiable.

Sometimes Walking Away Creates the Deal

This is interesting.

People often assume walking away means the negotiation failed.

Not necessarily.

Sometimes that's when the real negotiation begins.

Once both sides understand that you genuinely will not accept the current structure, the conversation becomes more realistic.

And sometimes the deal dies.

That's okay too.

Not every negotiation is supposed to end with an agreement.

That was something I had to learn.

When you're ambitious, you naturally want to make things happen.

You want the contract.

You want the partnership.

You want the opportunity.

But maturity in business also means being able to look at an opportunity you really wanted and say:

Not under these terms.

Never Destroy Tomorrow's Relationship Over Today's Negotiation

There is another side to being tough.

Don't be stupid.

You may negotiate with the same person again.

You may need each other later.

They may introduce you to someone.

They may become a customer five years from now.

The deal might not work today and make perfect sense later.

You can be firm without being disrespectful.

You can say no without making an enemy.

You can protect yourself without humiliating the other side.

I think the best negotiations leave both parties able to work together afterward.

Because sometimes the relationship ends up being worth far more than the original transaction.

Your Reputation Negotiates Before You Arrive

The longer I've been in business, the more I've noticed this.

Reputation changes negotiations.

If people know you pay your bills, keep your word, perform at a high level and honor agreements, that matters.

If people believe you'll say anything to close a deal, that matters too.

Eventually your history enters the room before you do.

That's why I don't view negotiation as tricking somebody into giving me better terms.

That's short-term thinking.

The objective is to create an agreement that makes sense, protect what matters and preserve the ability to do business again.

The Best Leverage Is Having Options

That's what Geneva has me thinking about.

People associate negotiation with being aggressive.

Talking louder.

Pushing harder.

Making demands.

I've come to see it differently.

The strongest negotiator isn't necessarily the loudest person at the table.

It's often the person who prepared better.

They know the numbers.

They understand the other side.

They know what matters.

They know what doesn't.

They know their alternatives.

They know their limits.

And if the deal no longer makes sense, they're capable of getting up from the table.

That last part changes everything.

Because when you don't need every customer, you can choose better customers.

When you don't need every partnership, you can choose better partners.

When you don't need every dollar, you can protect the economics of the dollars you do accept.

So if you want to become a better negotiator, don't start by learning clever lines.

Start by building a better position.

More opportunities.

More relationships.

More information.

More cash.

More patience.

More options.

Then when you sit down at the table, you don't have to pretend you're willing to walk away.

You actually are.

And sometimes that is the most valuable thing you can bring into the room.

Corey Flores
Founder, Flores Marketing Firm