Negotiation Preparation and Research

Negotiating without a should cost model is surgery blindfolded. I sat down with a supplier armed with market benchmarks and way more confidence than I deserved. They quoted 15% above my target. I pushed back with data, they held firm. I eventually settled at 8% above and thought I did well. (I thought I knew how to negotiate back then. I didn't. I was just a rookie.) Ten months later, I discovered their actual cost structure. My "win" still left them with a 22% margin. I had negotiated against their asking price, not their real cost. That failure built my own negotiation framework. Seven steps, in order: 1. Build the should-cost model: Raw materials, labor, overhead, logistics, margin. If you cannot break down their cost, you cannot challenge it. 2. Map the power dynamics: Who needs this deal more? What are their alternatives? What are yours? Be brutally honest with yourself here. (And factor in every variable specific to your case). 3. Define your BATNA: Do this before the meeting. Not during, not after they pressure you. Before. Always before. (By the way, defining your BATNA isn't just figuring out who can bail you out of a jam. It is much more than that—I actually covered this in a previous post). 4. Identify their constraints: Cash flow timing, capacity utilization, competitor threats. Their pressure points are your leverage. 5. Prepare three scenarios: Best case, acceptable, walk-away. Know your numbers for each before you sit down. 6. Lead with value, not price: What problems can you solve for them? Volume stability, payment terms, multi-year commitment? 7. Document and review: Every negotiation teaches something. Capture it while it is fresh. Save the image. Use it before your next negotiation. #Procurement #Negotiation #ShouldCost #ArchitectOfValue #Procurestudio

When negotiating, do you think the big wins happen at the table? They don't! The real magic happens before the first word is spoken. Success in 80% of negotiations is due to preparation. It's taking small steps to control the process, foresee challenges, and set small goals. I coached a procurement manager stuck in a deadlock with a supplier. Both sides had drawn firm lines: • The supplier demanded upfront payments. • The procurement team refused. • They feared cash flow issues. For weeks, the talk had gone in circles. It made no progress. When I stepped in, I asked one question: “𝙒𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙨𝙪𝙥𝙥𝙡𝙞𝙚𝙧 𝙧𝙚𝙖𝙡𝙡𝙮 𝙣𝙚𝙚𝙙?” The team realized the supplier's main concern wasn't money. It was to reduce delivery risks. By focusing on interests, not positions, we found a solution: 𝗔 𝘀𝗺𝗮𝗹𝗹 𝘂𝗽𝗳𝗿𝗼𝗻𝘁 𝗽𝗮𝘆𝗺𝗲𝗻𝘁, 𝗽𝗹𝘂𝘀 𝗺𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘁𝗶𝗲𝗱 𝘁𝗼 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗽𝗵𝗮𝘀𝗲𝘀. The result? The deal closed in two days, with terms that worked for both sides. That negotiation taught me this: →  Preparation isn't just logical. → It's also strategic and emotional. I'm happy to share here how I prepare for a negotiation: 𝗦𝗲𝘁 𝗦𝗠𝗔𝗥𝗧 𝗴𝗼𝗮𝗹𝘀 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝘀𝘁𝗮𝗴𝗲. • Be Specific, Measurable, Achievable, Relevant, and Time-bound. • No vague goals like “get the best deal,” aim for concrete outcomes: → Add a long-term partnership clause → Reduce delivery timelines by 10% → Secure flexible payment terms 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝘀, 𝗻𝗼𝘁 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀. • Ask, why does the other side want this? • When you negotiate based on interests, you create options that meet both parties’ needs. 𝗣𝗿𝗲𝘀𝗲𝗻𝘁 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗼𝗳𝗳𝗲𝗿𝘀 (𝗠𝗘𝗦𝗢𝘀) • Successful comes with always having options ready. For example: → Offer A: A 5% discount for upfront payments. → Offer B: Standard payment terms and extended service coverage. If you present choices, you reduce deadlock and keep control of the conversation. 𝗨𝘀𝗲 𝗘𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲. 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗹𝗼𝗴𝗶𝗰—𝗶𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻. • Practice self-awareness to stay composed under pressure. • Show empathy to build trust. • Use "Feel, Felt, Found" on objections, and it'll guide decisions. Negotiation is like a dance. Both sides need to move in sync, adjusting their steps as they go, to create a harmonious outcome. And the best dances are choreographed long before the music starts. So, what’s been your biggest negotiation breakthrough? Have you ever unlocked a deal by shifting focus from demands to solutions? Found success by preparing better than your counterpart? Drop your story in the comments—I’d love to hear it. Or DM me if this resonates with a challenge you’re navigating. Let’s talk about what works.

Strong negotiation outcomes are usually built before the meeting starts, not during it. In procurement, the real advantage is rarely sharper rhetoric. It is better preparation architecture, clearer issue design, and tighter commercial capture.  A useful way to reframe negotiation is this: stop treating it as a price discussion, and start treating it as a multi-variable value design exercise. A few principles that matter in practice: • Preparation quality sets the outcome ceiling long before the first offer is made • A should-cost view, credible BATNA, issue map, position structure, and supplier intelligence must work as one system • The most valuable trades come from asymmetry — concessions that cost you little but matter more to the supplier • Single-issue bargaining narrows the commercial outcome; multi-issue packaging expands it • Supplier tactics are best countered through preparation discipline, not improvisation in the room • Governance matters: mandate clarity, team roles, and live concession control prevent avoidable leakage • Negotiation is not complete when terms are discussed; it is complete when value is captured clearly in writing Negotiation science is not about becoming more aggressive across the table. It is about building the analytical discipline to know what to trade, what to hold, what to link, and what must be documented before value starts leaking back out of the deal. Global Procurement Series — Season 2 STRATEGIC SOURCING: THE ANALYTICAL DISCIPLINE Part 4 — NEGOTIATION SCIENCE (Season 1 covered procurement foundations — analytical frameworks, measurement design, operating model, data architecture, and value realisation. Link in comments) #Procurement #StrategicSourcing #Negotiation #ProcurementAnalytics #CategoryManagement #CommercialExcellence #CFO #SpendAnalysis #SupplyChain #ProcurementLeadership

True story. Two companies, in two different categories, negotiating the renewal of their sponsorships with the same rightsholder at the same time. Both had been sponsors for a very long time. At the end, one paid 10, the other paid 40. Why? The first started preparing (i.e.: evaluating the opportunity, engaging multiple departments within their organization, modeling potential scenarios, and getting all the approvals they needed to negotiate). They engaged with the rightsholder in the negotiation a year before they were supposed to do it. The second assumed if they let the exclusive window run to the very end, the rightsholder would feel the pressure to renew the deal at a lower price. They engaged with the rightsholder only weeks before the end of their negotiation window. The first created an engagement plan where their CEO would meet with the rightsholder President multiple times a year to develop the relationship, invite key members of the rightsholder to learn more about their business, and support them in projects important for them. The second assumed that the top-to-top relationship could jeopardize the negotiation, afraid that the working team relationship would be undermined by their bosses. The first knew in their assessment that there was a low probability of competitors bidding for the sponsorship. The second did the same, looking only at their immediate competition, ignoring well-funded bidders from Asia. The first kicked off the negotiation a year ahead of time and had time for all the discussions. The second, in contrast, was surprised at the end of their exclusive window for negotiation, with a very aggressive bid from an Asian company they ignored. They were given just a couple of days to present their best offer. The negotiation of a sponsorship starts long before you ever sit down with your partner to talk about the deal. How you prepare, the people you engage, the process you follow, etc., are all very important. Both companies proudly announced their deals to the global press. One CEO was 4x happier than his peer.

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.

I used to dread negotiations early in my career... Then I realized: Being a strong negotiator isn’t about confrontation. It’s about developing the right frameworks. Here are five game-changing approaches to  negotiate every deal more effectively: 🤝 The 4 Phases Framework (h/t: Roy Lewicki) Great negotiators don’t jump straight to bargaining.  They follow a structured process: • Preparation (lay the groundwork) • Information Exchange (build mutual understanding) • Bargaining (explore potential solutions) • Commitment (secure the agreement) 💪 The BATNA Strategy (h/t: Roger Fisher & William Ury) Your power in any negotiation comes from knowing  your Best Alternative to a Negotiated Agreement (BATNA). It’s your safety net, your source of confidence.  Always define it before you start. 🎯 The Negotiation Matrix (h/t: Lewicki & Hiam) Different situations call for different strategies: • High stakes? Compete. • Building a long-term relationship? Collaborate. • Minor issue? Avoidance might be best. • The relationship is too critical? Accommodate. • Both matter equally? Compromise. 🤔 The Harvard Principled Negotiation Method (h/t: Fisher, Ury & Patton) This is a game-changer: Focus on interests, not positions. Instead of asking what they want, ask why they want it. That’s where real value creation happens. 🎯 The ZOPA Framework (h/t: Fisher & Ury) The Zone of Possible Agreement (ZOPA) is where deals get made. Understanding both sides’ limits helps you identify common ground. Everything else? It's just noise. Key takeaway: The best deals happen when both sides feel heard. And the most successful negotiators aren’t the most aggressive. They’re simply the most prepared. ♻️ Find this valuable? Repost to your network. 💡 Follow Eric Partaker for more on business & leadership.

Every five-year-old is a better negotiator than most people in logistics. Think about it. That kid asking to watch one more episode of Bluey before bedtime? They’ll use logic, emotion, timing, even leverage (“but you said yesterday…”). And it usually works. Somewhere along the way, many of us in logistics lose that instinct. We negotiate rates, contracts, and service commitments daily—but are we doing it with the same tenacity of a kid thats trying to stay up an extra 15 minutes? Whether it’s a shipper-carrier RFP, a contract negotiation, or a vendor contract, the best operators win because they’ve done all the prep work below. A negotiation is won or lost during this phase. 🔹 Analytics: Know your data. Benchmark rates. Understand network constraints. Create tools that allow you to quickly iterate analysis 🔹 Alignment: Make sure operations, finance, and procurement are all calibrated on the same objectives. 🔹 Leverage: Know the other side’s alternatives—capacity, timing, seasonality, and exposure. 🔹 Perceived value: Frame your proposal around what matters most to them—not just what helps you. The negotiation itself is just the performance. The win? It happened during the preparation. So, channel the instincts of your five-year-old self and become a better negotiator. For yourself, for your company, for whatever matters to you and go get it.