■ · People
Negotiation: prepare like a detective, listen like one too
Owners negotiate all the time: prices with clients, terms with vendors, leases, pay, partnerships. Most of the result is decided before the conversation starts, by how well you prepared. That's a skill anyone can build, and it starts here.
Know your walk-away before you sit down
Roger Fisher and William Ury's Getting to Yes introduced the idea of your BATNA: your best alternative to a negotiated agreement. In plain terms, what will you do if this deal doesn't happen? Your walk-away point comes from that answer. The stronger your alternative, the more confidently you can negotiate. If you don't know it, you'll accept a bad deal because you're afraid of no deal.
Interests, not positions
The same book separates positions (what someone says they want) from interests (why they want it). A client who demands a lower price might really be worried about cash flow this quarter. Payment terms could solve that without cutting your price. Ask why until you find the interest.
Listen to understand the other side
Chris Voss, a former FBI hostage negotiator, argues in Never Split the Difference that people agree more readily when they feel understood. Two of his techniques are simple to use:
- Label what you hear: "It sounds like timing is the real concern." It shows you're listening and invites them to say more.
- Ask "how" and "what" questions: "How would that work on your side?" "What would make this work for you?" They get the other person solving the problem with you.
■ Tool
Negotiation prep sheet
Fill it in before any negotiation that matters. Most of the value is in being forced to answer the questions.
During the conversation
- Let them talk first and longest. Every minute they talk, you learn something.
- Trade, don't give. If you give something, ask for something back: a longer commitment, faster payment, a referral.
- Silence is fine. After you state your price, stop talking.
- Don't negotiate against yourself. If they say "that's too high," ask what they had in mind before lowering anything.
- Put the agreement in writing the same day, in a short follow-up email.
Every negotiation is a small case file
Investigate the other side before you meet. What pressures are they under? What happens to them if there's no deal? That's your real leverage.
Play out their likely moves and your responses in advance. Surprises are where people give away too much.
Picture advising a friend in your exact situation. You'd tell them to walk away from a bad deal much faster than you'd tell yourself.
Run any concession through the Dollar Test. A 10% discount on a client with a 20% margin cuts their profit in half.