How to Persuade When Negotiating with Vendors

When I'm negotiating, I tend to AGREE with the other side. Sounds counter-intuitive. But it's enabled me to close 7-figure settlements. Most lawyers think negotiations are about being tough, standing your ground, and not giving an inch. I take the opposite approach: tactical empathy. Here's how it works. When opposing counsel says something like, "That's a ridiculous settlement demand. We can never possibly pay that much," I don't fight back. Instead, I validate them: "I can see why you would say that. I'm sorry for that. What can I do to come up with an offer that makes sense for you? My client is unfortunately stuck here." Their reaction? Complete confusion. They're prepared for a fight. They've got their counterarguments lined up. But when I validate their feelings instead, their entire script falls apart. The best part? They start giving me information I can use to negotiate against them. When faced with validation instead of opposition, lawyers suddenly start explaining their real constraints, their client's actual position, and sometimes even what number they might actually be able to get approved. All because I didn't argue. I've found this approach works especially well on lawyers because they don't even know what's happening. They're so used to adversarial negotiations that genuine validation short-circuits their usual approach. The key elements: • Validate their emotions • Acknowledge their position • Ask questions instead of making demands • Keep validating even when they try to be difficult This isn't just about being nice – it's strategic. By removing the confrontation, you force them to either engage constructively or look unreasonable. Next time you're in a difficult negotiation, try validation instead of opposition. It feels counterintuitive, but the results speak for themselves. After all, the goal isn't to win the argument – it's to get what your client needs.

My #1 tip in negotiation is to make the other person feel like they've won by giving the illusion of choice. I really can't believe how powerful this has been for me personally, professionally & for my sales team. BACKGROUND: I've noticed something over & over again in any negotiation - people feel good when they have control. No one likes to feel out of control or that their fate is not in their own hands. So when I go toe-to-toe with a colleague, a prospect or my mother I think about how I can make them feel like they're in control by letting them choose the outcome. Only the outcomes they're choosing between, are options I presented to them because I'm cool with any of the outcomes. EXAMPLE 1: Here's an example. Let's say I quote the prospect a $20k deal and they push back for $15k. I know I won't go below $17.5k so I say: --- Hey - I've taken this back to my team since I know a more affordable service is important for you given your budget. You're really crushing me on the negotiation so I know I need to meet you halfway. I'm excited to share a few different options we came up with and I need your help deciding which is the best one for you so you can feel really good about this deal: (1) $20k deal with the 13th month free (2) $18k deal where you do a case study with us (3) $17.5k deal but it's a two-year commitment --- Prospect now has the illusion of choice. And always expect a good negotiator to collapse your choices by asking for the cheapest one with no strings attached. I know they're going to counter with $17.5k, one-year deal which I expect and am ok with. EXAMPLE 2: Second example, attached, is me negotiating yesterday with a LinkedIn Social Selling coach I just signed with (I've never tried one but think I could use one). My highest willingness to pay was $10k cash for 3 months. Just like in the first example I gave 3 options for the illusion of choice. They countered, collapsing my options to $10k + the references. Smart move and a tad beyond what I wanted but I signed and we both walk away feeling good. I'm amusing myself writing this because this new coach will both hate & love this post ;) #negotiation #saas #tips

The phrase "we're still evaluating vendors" has killed more deals than any other objection. Our analysis shows it extends sales cycles by 47% and decreases close rates by 29%. I recently coached a rep whose $112K deal had been stuck in this limbo for over 90 days. No amount of "checking in" emails was moving the needle. Here's the 3 question framework we used that has accelerated 78% of stalled deals for my clients and recovered $1.2M in pipeline: 1. "If all vendors had identical pricing, how would you decide?" This reveals their true decision criteria beyond price. 2. "What's your ideal implementation date if everything goes perfectly?" This establishes timeline commitment. 3. "What would prevent you from making a decision by [specific date]?" This surfaces the real objection. The results were immediate. We discovered they were waiting for a competitor's new feature that wouldn't be released for 6 months. Once he addressed this directly and demonstrated how they could achieve the same outcome with his solution immediately, the deal closed within a week. $112K deal secured. This isn't about being aggressive. It's about clarity. Both sides benefit when you surface the real obstacles instead of letting deals linger in purgatory. Tired of stalled deals? Here are 15 other proven strategies: https://lnkd.in/e5CMHFih

❌ "We don't accept redlines to our terms." ❌ Well, as an in-house attorney, I don't always accept that position. Sure, there are some instances in which I agree that negotiating the terms isn't necessary. For example, if the deal is low risk to us, if the terms offered are well drafted and reasonable, or if my business client needs it signed asap and accepts the risks. But what about all those other times where I don't think it's in my client's best interest to sign the terms as-is? How do I get past this initial NO? My Secret 🤔➡️ With a thoughtful negotiation strategy that requires minimal effort from my counterparty and focuses on impactful yet reasonable asks. Aka I make it really hard for them to keep saying No to me. Here are three things I do - and recently did again - to get past NO during a tough contract negotiation. ✅ Run a gap analysis of the terms and identify my client's three top issues -- Aka I am reasonable because I'm only asking for three changes. ✅ Outline them in an email and explain WHY I am requesting these changes -- Aka I am respectful because I didn't send them my redlines after they told me they don't accept redlines. ✅ Schedule a call to discuss only those three issues and screen share a redlined draft showing my proposed markups -- Aka since we're on the phone already and I did all of the work, how can you say No to me again? I implemented this strategy last week and the counterparty agreed to all three changes. 🤐 This isn't the first time this approach has worked. My Client's Response: "Wow! I can't believe you got them to change their mind! I guess No doesn't always mean No." That's right. No doesn't always mean No. Especially when you use smart redlining and negotiation skills to navigate the situation. ❓Tell me, what are your best methods to get a counterparty to agree to your redlines after they've already said No? #gettingtoyes #negotiationskills #negotiationtips #contractnegotiations #fromnotoyes #corporatecounsel

Negotiation tactics we used to decrease our SaaS spend by 30% in the last year: It’s amazing to me how much room there is in SaaS pricing. The price is not the price is not the price. You can always negotiate, and there are often loopholes that can save you a ton of money. Here are some of them: - Cancel the renewal before the negotiation. We send cancellation notices to our biggest opportunity negotiations months in advance, and tell them that we will only renew upon having a new deal. Often, account reps can provide special discounts for “at risk” clients. - Get your usage data. We always dig through our data before a negotiation. If our usage is lower than expected, we use that as leverage. For example, our hiring has gone down by about 60% post-ZIRP, but we still paid the same annual price for our applicant tracking system. We showed them the data and made it clear the software wasn’t worth what we were paying. - Be nice. Honestly, sometimes I get frustrated because I know I’m getting the runaround. Every time I do, it backfires. When I’m on my A-game, I’m nice - I tell them I love their software, it is useful, but we just don’t have as much of a need right now. It’s not you, it’s me. I do tell the truth, though, so they know I’m genuine with my praise and critiques. - Compare their costs to other options. There are 3 different types of comparisons: 1) direct competitors. Just call them and get a quote. 2) indirect competitors. Oftentimes another company offers a “basic” version of the software you’re using, so you can use that as leverage: “we don’t need an applicant tracking system because we already pay for Notion”. 3) budget competitors. Compare the pricing of x subscription with y subscription. We regularly compare unrelated products and say: you are the 2nd highest cost product we use, even though you aren’t the 2nd most valuable to us. - Ask 3x. You almost always have to negotiate at least three times to get the best deal. It doesn’t work with every company, but most account reps have latitude and at some point you’re not worth their time. Take advantage and just make sure you press multiple times in a row instead of taking the first offer. I’m surprised at how often we get our way in these negotiations. Sometimes I step in as the founder, but now my team has watched this playbook and gets the same results on their own. You don’t need to be a founder or a business unit leader to do this: act like an owner and make sure your company isn’t wasting money!

Here’s a masterclass in selling. Several months ago, I received two bids from general contractors to renovate my home. I told Chris I was considering a competitor. Chris didn’t bash the competition with something like: “Those guys are probably going to say we don’t specialize in residential projects or that we cut corners. Nothing could be further from the truth.” Instead, he said: “That’s okay. Can I ask you a few questions about the other GC you’re considering?” “Sure.” “You mentioned the sound the door makes is important to you. Some GCs use hollow instead of solid doors to reduce costs. Do you know what kind of doors they’re quoting?” “For plumbing, some contractors use cheaper materials, like plastic or thin metals, to save money. These wear out faster and can cause leaks down the road, leading to more expensive repairs. Are they quoting higher-quality materials like brass or copper fittings?” The lesson? Don’t try to undermine your competitors. You’re biased—of course you’d bash them. Instead, be the arbiter of unbiased information. Chris pointed out potential cost-cutting areas, explaining the impact of lower-quality materials, and let me draw my own conclusions. The rule? If you’re explaining, you’re losing :-) People are more persuaded by conclusions they draw themselves, not the ones you draw for them.

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

It’s crunch time for sellers, and I wanted to share with you my #1 negotiation tip to help bring your deals over the finish line in Q4. Never offer incentives or discounts until you’ve done this: 👇👇👇 #𝟏 𝐓𝐢𝐩: 𝐀𝐥𝐰𝐚𝐲𝐬 𝐜𝐨𝐧𝐟𝐢𝐫𝐦 𝐭𝐡𝐚𝐭 𝐭𝐡𝐞𝐲 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐦𝐨𝐯𝐞 𝐟𝐨𝐫𝐰𝐚𝐫𝐝 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐛𝐞𝐟𝐨𝐫𝐞 𝐨𝐟𝐟𝐞𝐫𝐢𝐧𝐠 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐨𝐫 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐬!!! This may seem obvious, but WAY too many sellers offer Q4 incentives as a way to close the deal before validating that the customer is ready to move forward! They may still have unspoken concerns, such as technical fit, implementation support, timing, or higher priorities. If you try to negotiate before addressing these concerns, you are simply negotiating against yourself. Even if they mention price as a concern, you still need to validate that it’s their ONLY concern before negotiating. Here’s a great question to ask before ever offering an incentive or discount: “Before we discuss any Q4 incentives, I just want to confirm that you are ready to move forward and have no other questions or concerns we should address besides pricing.” If you get their confirmation, then ask about their pricing concerns before sharing what you can offer. You need to make sure your incentive is mapped directly to their concerns. For example, if their concern revolves around the contract length, you can offer to provide them with the 60 month rate on a 36 months term if they move forward this month. If their concern is around cash flow, you may be able to offer semi-annual or quarterly billing. If their concern is about license or consumption commitment, you may be able to do a ramp plan. The main point is that you need to make sure PRICE or COMMERCIALS are the only concern before you negotiate or offer anything. And always, always making sure you are negotiating directly with the decision maker who can say yes. Otherwise, your incentives will likely miss the mark. In today’s training video, I share a great talk track to begin negotiations, as well as several other strategies to ensure your negotiations are successful. You can find the full training video here: https://lnkd.in/g4XVVmiv