Agile Contract Negotiation Tactics

They thought they had no choice. That’s why they almost gave in. I was in the room when it happened. A client (let’s call them Pollocks Pipelay) had been working with the same supplier for years. Solid relationship, reliable service. But one day, the supplier walked in and said: "𝙒𝙚’𝙧𝙚 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙞𝙣𝙜 𝙥𝙧𝙞𝙘𝙚𝙨 𝙗𝙮 𝟯𝟬%. 𝙉𝙤𝙣-𝙣𝙚𝙜𝙤𝙩𝙞𝙖𝙗𝙡𝙚." Immediate silence and panic. They needed this supplier - They started calculating how to absorb the cost - There was no backup - No safety net Then I asked the team: "𝙒𝙝𝙖𝙩 𝙝𝙖𝙥𝙥𝙚𝙣𝙨 𝙞𝙛 𝙮𝙤𝙪 𝙬𝙖𝙡𝙠?" Nobody had an answer! I aimed to shift their view from fear to power Most negotiators consider a Fallback Plan (BATNA) a concept The best negotiators 𝙬𝙚𝙖𝙥𝙤𝙣𝙞𝙨𝙚 it. - We took a step back - We mapped the fundamental alternatives - We found a smaller but reliable European supplier Was it perfect? No Was it good enough to remove the fear of walking away? Absolutely At the next meeting, Pollocks Pipelay didn’t beg for a price adjustment Instead, they confidently said: "𝙒𝙚’𝙧𝙚 𝙬𝙚𝙞𝙜𝙝𝙞𝙣𝙜 𝙤𝙪𝙧 𝙤𝙥𝙩𝙞𝙤𝙣𝙨, 𝙗𝙪𝙩 𝙬𝙚 𝙬𝙖𝙣𝙩 𝙩𝙤 𝙢𝙖𝙠𝙚 𝙩𝙝𝙞𝙨 𝙬𝙤𝙧𝙠" You should have seen the supplier’s face The power dynamic instantly flipped: - Pollocks Pipelay secured better payment terms - The supplier dropped their price increase entirely - They knew they’d never be backed into a corner again I see this mistake constantly. Smart professionals walking into negotiations without a strategic fallback plan → 85% of negotiators lack a strong fallback plan →Those who anchor first with a solid BATNA secure deals 26% closer to their goals →Having a fallback plan reduces bad deals by 40% while preserving relationships Yet so many people still fear walking away. Make your Fallback Plan your power move 1️⃣ Before the negotiation: Identify at least two real alternatives. Don’t rely on assumptions. Map your ZOPA (Zone of Possible Agreement). Study their BATNA—what are their options if you walk? 2️⃣ During the negotiation: Signal strength (“We’re weighing options, but I’d like to find common ground”) Stay flexible—adjust if new information emerges. 3️⃣ After the negotiation: Document what worked. Refine your BATNA for next time. The Best Negotiators Don’t Fear Walking Away—𝗧𝗵𝗲𝘆 𝗙𝗲𝗮𝗿 𝗦𝗲𝘁𝘁𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗟𝗲𝘀𝘀. Don't be aggressive in negotiations. Just know your worth and your options. Think about your negotiations. Do you have a Fallback Plan? Or just hope for the best? Have you ever been in a deal where you felt trapped but found a way out? Or maybe you’ve walked away, and later realized it was the best move you could’ve made? Drop your story in the comments. Let’s talk about how having (or not having) a fallback plan (BATNA) changed your outcome.

I've saved companies millions on enterprise software deals. Here's the negotiation framework I developed at Microsoft, VMware & Instacart: The hard truth: Most SaaS products cost almost nothing to run. Yet I once rushed into a 3-year contract that ended up costing us double what we expected. That expensive mistake taught me something powerful about enterprise deals. Most companies have a broken process: • See a need • Pick a vendor • Rush to close • Overpay massively Here's my 5-step framework to fix this: 1. Start Early (3-6 months before renewal) Companies who begin negotiations early consistently get 5-15% better terms. This isn't just about timing - it's about leverage. When you're not rushed, you control the conversation. 2. Create Competition Never negotiate with just one vendor. Ask each competitor: "What can you offer that others can't?" This simple question reveals hidden costs and scalability issues you'd never find otherwise. 3. Focus Beyond Price The real value is in: • Service level agreements • Integration support • Training resources • Future scalability • Data ownership Pro tip: Demand performance penalties. If they won't include fee refunds for missed SLAs, that's a major red flag. 4. Master the Slow Play Never take live meetings with sales reps. Force all communication over email. Then be slow to respond. This drives sales teams crazy - especially near quarter-end. They'll often improve offers without you asking. 5. Talk to Leadership If the head of sales or CEO isn't deciding your deal, you haven't reached the best possible terms. How to get there? Say "no" frequently. Let the deal drag on. Make it appear lost to the vendor. Using this framework, I consistently negotiate: • 30-50% discounts on list prices • Better service levels • More flexible terms • Additional features at no cost The secret? Software costs almost nothing to run. Vendors depend on recurring revenue. They'll bend significantly to keep your business - if you know how to negotiate. Want to master the founder mindset and build better? Join Founder Mode link in my Bio for free weekly insights on startups, systems, and personal growth.

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.