Pricing Strategy Negotiations

Here's a step-by-step breakdown on how to negotiate with a supplier (a playbook for your next negotiation)   You’re facing a supplier who’s increasing prices, and it’s threatening your margins.   This is exactly what one of my clients — a manufacturing CEO — was up against.   Here’s how I helped him turn it around:   1. Don’t Start with Price – Lead with Understanding   First, I told him: “I understand that you’re facing pressure too. Can you walk me through what’s changed on your end?”   By opening the conversation this way, he got the supplier talking about their challenges, not just about raising prices.   This put the focus on the problem, not the cost.   2. Ask for a Breakdown   You need the specifics on why the prices are going up.   “Can you help me understand the key factors driving this increase? I want to ensure we’re on the same page and can explore solutions.”   This makes it clear you’re not just passively accepting... But actively looking for mutual understanding.     3. Explore Alternative Solutions   Instead of just battling over price, ask about other ways to meet their needs without impacting your margins.   “What other solutions could we explore to offset these price changes?   Could we adjust order quantities, change delivery schedules, or modify terms to maintain the same cost?”   This opens the door to creative problem-solving that benefits both sides.     4. Use MESO (Multiple Equivalent Simultaneous Offers)   This is a powerful tactic where you offer a few alternatives that all work for you, giving the supplier options.   It helps you avoid a deadlock.     “We have a few options to consider:       1. Maintain the current price if we commit to a longer-term agreement.     2. Accept a 5% price increase but shorten the contract length.     3. A 10% price increase with better delivery terms.      Which option works best on your end?”   This lets them choose the solution that’s easiest for them while keeping you in control.     5. Highlight Long-Term Partnership Value   Make it clear that you’re in this for the long haul.   And you’re looking for a deal that benefits both of you.     "We value this partnership, and we want to continue growing it.   Let's work together to find a solution that makes sense for both of us in the long run.”   This builds goodwill and emphasizes your commitment to a strong, ongoing relationship.     My client saved 12% on operational costs and secured a long-term supplier relationship.   The key takeaway:   Don’t negotiate just on price.   Lead with understanding, ask for better terms, and propose a solution that works for both sides.   Ready to negotiate smarter? Let’s talk ---------------------------- Hi, I’m Scott Harrison and I help executive and leaders master negotiation & communication in high-pressure, high-stakes situations. - ICF Coach and EQ-i Practitioner - 24 yrs | 19 countries | 150+ clients  - Negotiation | Conflict resolution | Closing deals

Has #Amazon asked you to lower your cost prices? 🏷️🔻 In 2025, Vendor Managers are targeting up to -10% in CPDs from suppliers So how can you say No to protect your profit margins? Here's a tried & tested 3-step formula: 𝟭- 𝗗𝗼𝗻'𝘁 𝗽𝗮𝗻𝗶𝗰. This is the most important step. Resist an emotional response, which will do more harm than good. Focus on step 2 instead: 𝟮- 𝗔𝗻𝗮𝗹𝘆𝘀𝗲 𝗔𝗦𝗣 𝗮𝗻𝗱 𝗡𝗲𝘁 𝗣𝗣𝗠 𝘁𝗿𝗲𝗻𝗱𝘀. Reviewing these KPIs for the past 6 to 12 months will give you a good understanding of the trends that have materialised on your account. ✅ If your ASP and Net PPM are trending upwards or have remained stable, there's no reason for a cost price decrease. ⚠️ But if your ASP or Net PPM is trending down, you may need to prepare to make concessions in your negotiations. 𝟯- 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝘀𝗵𝗮𝗿𝗲𝗱 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀. Vendor Managers ask for lower cost prices to improve their profit margins on your account. And a cost price decrease will certainly increase Amazon's free cash flow. But it's not the only way to achieve that. Instead of responding to their CPD request, focus discussions on shared cost savings. For example: 📦 Launch of SIOC/FFP items  ✂️ Delisting of unprofitable listings 🚚 Supply Chain Initiatives (PICS, Direct Import, ...) Remember: Cost price decrease requests are part of a wider negotiation. You don't have to accept them, but you shouldn't ignore them either. --- Has your Vendor Manager asked you to lower your cost prices? Let me know in the comments! #amazonvendor #amazonstrategy

In business and life, the best outcomes go to the best negotiators. Most people think negotiation is about winning. It's actually about understanding. What separates good deals from great ones? It's not aggression. It's not manipulation. It's not who talks loudest. It comes down to mastering the human side of the exchange. Here's the path that works: 1. Prepare Like You Mean It Research goes beyond Google. Understand their pressures, their goals, their challenges. Knowledge becomes helpful when used with care. 2. Open With Real Connection Forget the power plays. Start with curiosity and respect. The tone you set in the first 5 minutes shapes everything that follows. 3. Explore What's Underneath People fight for positions. But they negotiate for reasons. "I need a better price" might really mean "My boss needs to see I'm adding value." Find the why behind the what. 4. Trade Value, Create Value The best deals aren't zero-sum. Look for ways both sides can win. Sometimes what costs you little means everything to them. 5. Close With Total Clarity Handshakes aren't contracts. Document what you agreed to. Confirm next steps before you leave. Ambiguity kills more deals than disagreement. The biggest mistake I see leaders make? They negotiate like it's combat. But the best outcomes come from collaboration. When you're across the table, remember: 👂 Listen more than you speak ❓ Ask "Help me understand..." when stuck ⏸️ Take breaks when emotions rise 👟 Know your walk-away point before you sit down Your style matters too. Sometimes you need to compete. Sometimes you need to accommodate. The magic is knowing when to shift. Success isn’t given. It’s negotiated. But how you negotiate determines whether you build bridges or burn them. Choose wisely. 📌 Save this for your next negotiation. ♻️ Repost if this helps you (or someone on your team) negotiate. 👉 Follow Desiree Gruber for more tools on storytelling, leadership, and brand building.

Most AEs think negotiation starts when procurement shows up. Wrong. Negotiation starts in discovery. The deals I won at the price I wanted? I set them up in the first 15 minutes of the first call. Here's how: I quantified the cost of inaction early. Not at the end when they're negotiating. At the beginning when they're sharing pain. Example: Customer: "Our sales cycle is 9 months. It should be 6." Most AEs: "Got it. We can help with that." Me: "Help me understand the math on that. How many deals are in flight right now?" Customer: "About 40." Me: "And what's your average deal size?" Customer: "$50K." Me: "So if I'm doing the math right, every month your sales cycle stays at 9 months instead of 6, you're delaying $2M in revenue. Is that accurate?" Customer: "Yeah, actually more like $2.5M when you factor in Q4." Now fast forward to negotiation: Procurement: "We need 20% off." Me: "I understand you want the best deal. We established that every month you don't solve this costs $2.5M in delayed revenue. My product is $200K. Even at full price, you're ROI positive in 3 weeks. Does it make sense to delay this over $40K?" See what happened? Anchor to value. Not price. By the time you get to negotiating, the business case should be bulletproof. The lesson: Stop thinking of discovery as "qualification." Start thinking of it as "value building and defense." Every question you ask in discovery either strengthens or weakens your negotiating position later. Ask better questions early. Negotiate less later. P.S. These 7 strategies will help you CLOSE more deals in a GTM crisis: https://lnkd.in/d_DkYTSH

Picture this: your sales team is hustling to lock down a huge deal, everything’s in motion, but then – disaster strikes. Without the right guardrails, they’ve just given away a discount that eats into your margins. Painful? Absolutely. Avoidable? 100%. And scenarios like this are all too common - it's something we hear all too often here at DealHub.io. So, what do we mean by "guardrails"? They are the backbone of the CPQ process, catching errors before they can wreak havoc on your bottom line. A rock-solid set of guardrails should include: ✅ Approval Workflows: Automated processes ensure quotes meet internal standards before finalization. 🚫 Discount Limits: Enforces maximum discount thresholds to protect profitability. ❗Validation Rules: Checks ensure all required information is accurate before quote submission. 💸 Dynamic Pricing Rules: Adjusts prices based on various factors to align with pricing strategies. 🎯 Product Selection Rules: Guides product choices to ensure compatibility and adherence to strategy. What kind of Guardrails do you have in place? #CPQ #Guardrails #DealHub

A rep told me she's been closing deals by giving 15 to 20% discounts. Not because prospects asked. Because she didn't think they'd say yes otherwise. I told her "You're training prospects that your price isn't real. And you're killing your margins and confidence." Here’s something I want you to think about… When you rely on discounts, you're not solving a pricing problem. You're covering up a value problem. Prospects push back because they don't trust the value yet. When you drop your price, you confirm it wasn't worth the original number. So what do you do instead? Build trust before price comes up. First, build a case study library. Most reps can't tell good stories about past clients. They know they've helped companies but can't articulate HOW. Schedule one hour interviews with your team who's done the work. Record it. Walk through specific situations. The company. The problem. What they tried before. The solution. The result. When a prospect brings up a concern, connect it to a real story. "You sound just like Company X. They had the exact same challenge. Here's what happened..." Stories are proof. Proof builds trust. Trust justifies premium pricing. Second, lead with your guarantee. Build it into your pitch. Example for Executive Search as that what this rep sold: "We're not the cheapest. We're typically 20 to 30% more expensive. But we offer a 12 month guarantee. If the placement doesn't work, we replace them at no cost." You've reframed the conversation. It's not about price. It's about confidence in the outcome. Third, disqualify price shoppers early. When someone says price is their number one concern: "Just to make sure we're aligned. We're typically more expensive by XX%. If price is your primary factor, we might not be the right fit. What do you think?" You flipped the script. They have to sell YOU on why they should work with you. Either they say "Actually price isn't the only thing. We care about quality too." Great. Real conversation. Or they say "No it really is just about price." Perfect. You saved weeks chasing a deal you'd never win. Fourth, use their business as an analogy. "In your business, are you the cheapest option?" Usually no. Mid tier or premium. "If a competitor came in 50% cheaper, what would they have to cut?" Cheaper materials. Less experienced people. Worse service. "Exactly. Same in our world. If someone's dramatically cheaper, what do you think they’re CUTTING out?” You just used their logic to justify your pricing. Fifth, know when to walk away. If you've shown value, told stories, offered a guarantee, explained ROI, and they're still pushing for a discount? They're not your customer. The right clients choose you because you're the obvious choice. Not because you're cheap. — If you found a ton of value out of this, you don’t want to miss my LIVE sales coaching call, for free: https://lnkd.in/g3CP4v2q

Since posting our guide on how to price AI software, I've been inundated with founders looking to talk through pricing strategies for their startups. Unfortunately, most are skipping the critical first step.   They are spending lots of cycles iterating on "how" to charge (e.g., usage-based, outcome-based, hybrid, etc).   But they're neglecting the most foundational element: how much to charge. We're finding that with proper ROI frameworks, AI products are able to capture 25-50% of created value, which is significantly higher than traditional SaaS's 10-20%.   Here's how the best founders are achieving these pricing levels:   1️⃣ They bring pricing discussions into the sales conversation early   The worst thing is waiting until procurement to talk about pricing. The role of enterprise procurement departments is to minimize spend, not to assess value. They lack budget categories for 'AI that does the work of 3 people'—so they'll try to squeeze you into their existing software line items.   When prospects seem hesitant to discuss ROI upfront, don't push. Instead, propose a value audit session. Sit down with them after they've used your product for a few months and calculate ROI together based on real usage data.   I've seen founders use this brilliantly during negotiations: "I'll give you a discount, but in six months we need to do a value audit." It's a fair trade that shifts the conversation to outcomes.   Here's a bonus move: always offer outcome-based pricing even if customers don't choose it. Simply presenting it signals confidence and willingness to share risk. When positioned alongside a fixed fee, it makes the fixed fee look fair by comparison.   2️⃣ They calculate ROI holistically, not just hard savings   Most founders focus only on labor reduction or vendor spend cuts. But that leaves money on the table.   Factor in the opportunity cost of time efficiencies. Include potential implementation cost differences compared to traditional SaaS. In many cases, AI products deploy faster and cheaper, which should be reflected in your ROI calculations.   Work with buyers to agree on ROI inputs upfront. Once they've signed off on the framework, challenging the outputs becomes much harder.   3️⃣ They use the "acceptable, expensive, prohibitively expensive" technique   Rahul Vohra used this exact approach from Madhavan Ramanujam’s "Monetizing Innovation" to price Superhuman:   To gauge willingness to pay, ask three questions: 1. "What would be an acceptable price?" 2. "What would be an expensive price?" 3. "What would be a prohibitively expensive price?"   Willingness to pay typically lands near the "expensive" point.   --   I've watched too many brilliant AI founders build incredible products only to leave millions on the table by treating pricing level like an afterthought.   Don't be one of them.   P.S. The complete pricing guide (with the decision framework and tactical playbooks) is live on our website. Link is in comments.

I’ve negotiated multi-multi-million dollar deals, and here are 5 things I’ve learned: Negotiation doesn't start when you sit down—it starts way earlier. 1: Before you even start… • Figure out what they actually need from you (and what pressures they're under-budget deadlines, approval hoops, whatever) • Know your walk-away number and your "stretch" ask • Identify a few trade-offs you can give that cost you nothing but feel valuable to them 2: Stop thinking yes/no It's not just "I win" or "I lose." Sometimes you win on price but give up rights. Or you take less cash but get equity or control of your work. Or you play it safe now so you can land a bigger deal later. You're not looking for one win — you're building a package of wins. 3: Money's not the only chip If they're stuck on price, move the conversation. Ask for: • Shorter exclusivity • Faster payment terms • Performance bonuses • Rights to reuse or resell your work Get creative. Sometimes the best part of a deal isn't the check. 4: Get intel they don't know you have Don't just Google "average rates." Find out: • What they've paid for similar work before • Who inside the company is your biggest fan • What competitor they really don't want you working with That's leverage you can actually use. 5: Price is a signal If you price too low, people assume you're inexperienced, in low demand, or a headache later. Set a number that says, "I'm good at this, and you're lucky to get me" — and then deliver so it feels like a bargain. What's your best negotiation tip?

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

Are you familiar with this? You submit a bid, and a potential client calls you up and says.... "Hey, you're a little more expensive than the competition, but if you drop $XXX amount of dollars, I'll give you the job." You hesitate. You don’t want to lose the work. So, you cave and say yes!! Now what happens? You just gave up that much more of your profit. $$ BUT the owner of company awarding the job just made that much more profit themselves and they took it from you. Worst of all, you’ve now trained them to negotiate this way with you on future projects. I know it’s easy for me to say this in a post and much harder to do when your in the moment BUT I’ve been in this position MANY times both negotiating and also the one pinned in the corner trying to maximize the conversation and not give up profit. If your negotiating, take a different approach to this situation and respect the company who may become a project partner with you needs cash flow as well. IF they don't, they'll cut corners and once again another short term win turns into a long term disaster. Too many contractors sacrifice profits before they even step foot on the job. In addition to a lack of project kick off procedures they lose even more profit even before while negotiating! Instead of dropping your price, try this: Ask for a meeting or ask to review the scope further. Maybe there’s a misunderstanding on logistics, some room for adjustments with scope, get the project done faster reducing overhead, etc..... you get the point. Expose the prebid secrets and I'm sure you'll find opprtunities. Negotiate scope instead of price. Is there work that can be adjusted, phased differently, or simplified? Value engineer the project. Can you propose alternatives that save money without cutting your margins? There’s always some give and take. The problem is, most take the easy path, cutting price, feeling pinned in a corner, rather than negotiating smarter over a 5 minute call. This is one of the many critical conversations we’re having in my new Preconstruction Peer Groups. If you're a contractor who wants to protect your profits, let’s talk. #construction #contractors #negotiation #profitability #preconstruction #proaccel