Sales negotiations are structured conversations designed to turn a lead into a customer. Like any important business interaction, they rely on strategic planning—understanding what you need, what the other party values, and where there’s room to meet in the middle.
Effective sales negotiation techniques aren’t only about persuasion; they’re about aligning interests. Every sales deal hinges on balancing cost and value, customizing solutions to fit the customer’s needs, and delivering on promises to build long-term trust. Done right, negotiations feel like a win-win. Companies with strong sales negotiation skills achieve 18% higher deal values and close 23% more sales annually.
Let’s break down what sales negotiation is, explore proven approaches, and show you how preparation and communication can help you close more deals with confidence.
What is sales negotiation?
Sales negotiation is a crucial stage of the sales process when buyers and sellers go back and forth to reach a mutually beneficial agreement. An effective negotiation ideally results in a sale and sets up a positive relationship with the customer moving forward. Successful sales negotiation is about ensuring customer satisfaction even when both parties drive a hard bargain.
Negotiation isn’t just part of selling to potential customers. It also plays a key role behind the scenes. In ecommerce or business-to-consumer (B2C) companies, there’s typically little to no direct negotiation with individual customers, since prices are fixed and usually non-negotiable. Instead, the companies use negotiation tactics when making wholesale deals with suppliers and securing procurement agreements.
There are many negotiation styles. Some sales teams have a win-at-all-costs mentality that can end up alienating as many customers as it brings in; others take a more measured approach in the hope the laid-back attitude curries favor with their target audience in the long term. How you negotiate depends on you and your business. Regardless, the goal is always to concede as little as you can while encouraging the other side to offer up as much as they’re willing to.
Sales negotiation skills worth cultivating
Teddy Roosevelt once said, “Believe you can and you’re halfway there.” He might not have been a sales rep, but he knew a thing or two about winning people over and projecting confidence. Luckily, you don’t need Roosevelt’s charisma to get what you want.
You just need a few key sales negotiation skills:
Active listening
During the sales negotiation process, always show the other party you understand their point of view. Pay attention to what the buyer is saying, but also to what they might be implying—their underlying concerns, motivations, or hesitations. If you can articulate their perspective as clearly as they can, they’ll see you as a partner, not an adversary.
Ask follow-up questions to show you’re listening to the other party’s perspective and to dig deeper into issues they’re facing. Empathy and communication skills go a long way in the negotiation phase. Make sure you’re truly understanding your buyer’s pain points and goals, and you’ll build rapport that will last.
Confidence
Skilled sellers know that, to negotiate effectively, you need to stay calm under pressure. Even if the negotiation feels friendly, it’s often still a game of chicken: Either you buckle or the other side does. You’ll likely face skepticism or push back from buyers. Avoid making impulsive price concessions out of frustration.
Of course, that doesn’t mean being inflexible. Avoid being so bullheaded that you refuse to make any compromises. Before going into the negotiation, meet with your team to define your ideal starting point and identify what you’re willing to compromise on. This preparation helps you keep a steady, professional demeanor. Aim to be confident but open.
Trustworthiness
Customer trust is essential to any successful business, and sales reps lay the groundwork. People want to work with people they trust, so make sure you do your part to show you’re working toward mutually beneficial outcomes. Give your customers essential info like product details, policies, and guarantees.
Share your brand’s story—why you exist, what you value, and how your product solves real problems—to create an authentic connection. Highlight current customer satisfaction through reviews, testimonials, or case studies. This reassures prospects that others like them have already had a positive experience with your business, which makes them more comfortable moving forward.
Remember there’s a reason the sleazy used-car salesperson is such a pervasive negative stereotype. Being transparent about how much wiggle room you have reinforces trustworthiness.
Sales negotiation strategies
- Do your research
- Take the lead
- Demonstrate value
- Anchor the negotiation
- Prepare to offer trades
- Be ready to walk away
Here are the essential negotiation strategies to hone when working toward a sale:
Do your research
The most important step in the selling process is proper preparation. Fully understand your product and how it benefits customers. Find out what your buyer wants, who the decision makers are on the other side of the table, and potential mutually beneficial solutions. Be prepared with data and analytics to justify your positions.
Take the lead
Be on the offensive from the get-go. Be the one scheduling meetings, setting agendas, and sending proposals. Give the impression you’re directing the conversation while still giving your buyer room to share their own thoughts and opinions. That way, you can more easily influence negotiation outcomes.
Demonstrate value
It’s not all about who can offer the lowest price. A value-based selling methodology—selling by focusing on the customer’s needs and desired outcomes—lets you focus on real-life value over product features and price points. While buyers care about cost, successful negotiations demonstrate how a product solves their specific problems. After all, 87% of high-growth companies take a values-based approach to sales.
Anchor the negotiation
Making the first offer sets the tone for the conversation and subsequent bids. Anchor the negotiation on your terms, and use the opportunity to set standards for what you consider fair.
Prepare to offer trades
Compromising and offering alternatives are part of the negotiation process. Consider possible concessions ahead of time, and come to conversations prepared to offer them. For example, maybe you’re willing to agree to a customer’s proposed lower monthly rate if they agree to a longer contract.
Be ready to walk away
At the end of the day, you don’t want to make an unfavorable deal. Good sales professionals recognize when the terms aren’t beneficial, when there’s been too much pushback, or when a customer is flat-out unreasonable. Sometimes, walking away is actually the kick the other side needs to meet you closer to your terms.
Sales negotiation FAQ
What is the 70/30 rule in negotiation?
There are two interpretations of the 70/30 rule in negotiation, both of which are helpful to consider. The first is that you should spend 70% of a negotiation conversation listening, and 30% speaking, and the second is that you should spend 70% of your time preparing and researching, and 30% actually discussing a deal.
What are the four traps of negotiation?
According to Harvard Law School, the four traps are: overvaluing your possessions, focusing too much on price, compromising your ethics, and making unappealing offers. For the best results, come to the negotiation table with reasonable expectations based on research, flexible terms that focus on value over price, and the ability to walk away from bad deals.
What is BATNA?
BATNA stands for “best alternative to a negotiated agreement.” Identifying your BATNA ahead of a negotiation is a good idea so you can clearly evaluate offers and identify when they’re unfavorable. To find your BATNA, you should list out all possible actions you could take if negotiations fail, evaluate the value of each of those actions, and select the best alternative.
