Tips for Negotiation and Influence in Procurement

Negotiation thrives on smart trade-offs. Move beyond price and create real value. Learn 7 proven strategies to unlock stalled negotiations and capture more value, without getting stuck on price. With 30+ years of negotiating across industries and regions, I’ve seen one skill consistently shape better deals: the ability to design trade-offs that work for both sides. Last week, I had the privilege of delivering the 𝗡𝗲𝗴𝗼𝗰𝗶𝗔𝗰𝘁𝗶𝗼𝗻 keynote at Fondazione Aldini Valeriani, hosted in the stunning setting of Palazzo di Varignana, in Bologna, Italy. The experience was memorable, not just for the venue, but for the exceptional group of entrepreneurs and executives in the room. Curious, sharp, and deeply committed to upgrading how they negotiate. Together, we explored a fundamental truth: When negotiations stall, it’s rarely because of price. It’s because we stop creating options. I shared real examples of how deals move forward, not by pushing harder on money, but by trading smarter across other variables. Here are 7 strategies we unpacked, with tactics you can apply today: 1️⃣ Identify and expand issues: Go beyond price. Add delivery terms, quality specs, exclusivity, IP use, training, etc. → Ask: “What other elements could make this deal better for both of us?” 2️⃣ Clarify differing priorities: What’s minor to you might be vital to them. → Move: Offer early payment in exchange for strategic terms. 3️⃣ Break down complex topics: Turn a rigid issue into flexible parts. → Split “price” into components: base fee, add-ons, volume tiers. 4️⃣ Evaluate timing differences: Explore how cash flow preferences differ. → Front-load value to them now in exchange for longer-term returns. 5️⃣ Address differing risk tolerances: Use your comfort with risk to relieve theirs. → Offer guarantees or volume commitments where you’re confident. 6️⃣ Combine complementary resources: Barter strengths. → Storage for data? Distribution for visibility? Get creative. 7️⃣ Structure conditional agreements: Build “if-then” logic into the deal. → “If performance exceeds X, then pricing adjusts to Y.” When you do this well, you stop haggling and start designing. The most powerful negotiators don’t demand more; they discover where value hides and trade accordingly. What’s a trade-off that changed the course of your negotiation? Drop it below or repost this with your own version. 📌 Save this for your next high-stakes conversation. Smart trades change everything. ♻️ If this reframes how you think about negotiation, share it with someone who needs to hear it.  

Feeling anxious about negotiations? - You are not alone. I was right there with you once. But here’s the thing - negotiations are 80% prep, and 20% delivery. This should be highly empowering because anyone can prep well. How do you prep? 🔸Research your counterpart. This could be desktop research, but I love having regular conversations with my suppliers to figure out what their real needs and wants are. I negotiated with a large powerhouse and the prevailing assumption was that they are so large, we just have to accept what they offer as their cost to copack. Conversations revealed that diversifying their clientele was a priority for them because even though they are large, most of their revenue was tied to one client. That’s a scary position for a big business. 🔸Know your maximum and minimum. And build options. This is the key prep step - be very clear on what are your asks are, and what you are willing to give in on. One of my clients has a largish leadership team. And everyone has a different supplier expectation. So, most negotiations deliver sub-par results because someone did not get what they wanted. My focus was on pinning down what every leader needed, and having them sign off on it, so we could walk into the negotiation with clearly defined asks. 🔸Bring a buddy. If negotiations make you nervous, bring a friend along.. bonus if they are a subject-matter expert. Be sure to brief your buddy on their role. Last thing you want is someone on your own team hijacking the conversation. 🔸Use silence effectively. There is no need to fill in gaps, or extrapolate when something is not stated explicitly. For ex., when your counterpart repeats your ask, just confirm if they got it right. I’ve sat in on more than one negotiation where the other party gave in because they thought I was not happy with what they were offering. And then there are the obvious ones - don’t wing it, don’t agree to anything on the spot, be respectful, etc. If you’d like a detailed playbook, leave me a comment or DM me.

"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