In Panama, business happens face-to-face, over coffee, and personal relationships carry as much weight as the numbers. But don't confuse warmth with weakness: the best Panamanian negotiators are friendly and firm at the same time.
If you've ever walked out of a meeting feeling you gave too much, didn't say what you wanted, or the other person got their way, this article is for you.
Before the negotiation: what you do in silence
Negotiations are won or lost before you sit at the table. Preparation is 80% of the result.
Define your BATNA
BATNA stands for "Best Alternative to a Negotiated Agreement" — your best alternative if the negotiation fails. In simple terms: what do you do if you don't reach an agreement?
If you're negotiating rent for a space in Multiplaza, your BATNA might be another space in El Dorado that costs $500 less. If you're negotiating your salary, your BATNA might be another offer you already have.
The better your BATNA, the stronger you negotiate. If you have no alternative, you're desperate, and the other side can tell.
Know your limits
Before entering the room, define three numbers:
- Your target: What you ideally want to achieve
- Your minimum acceptable: How far you're willing to concede
- Your walk-away point: Where you say "no, thank you" and leave
If you don't have these numbers clear, you'll improvise. And in negotiation, improvising is losing.
During the negotiation: techniques that work
Listen more than you speak
The 70/30 rule: listen 70% of the time, speak 30%. When you talk less, the other person reveals information. When you talk too much, you reveal yours.
Open-ended questions are your best tool: "What's most important to you in this agreement?" "What concerns do you have?" "What would the ideal scenario look like for you?"
The answers to those questions give you a map of what the other side needs. And if you know what they need, you can offer exactly that — in exchange for what you need.
Anchor first (but intelligently)
In negotiation, the first number mentioned becomes the "anchor" that all subsequent proposals are measured against. Whoever anchors first has an advantage, as long as the number is reasonable.
If you're selling a service and the market values it between $3,000 and $5,000, don't open at $3,000. Open at $5,500. You give yourself room to concede without falling below the range.
Use silence
When someone makes you a low offer, don't respond immediately. Look at the offer. Look at the person. Wait. Silence makes the speaker uncomfortable, and often the other person starts justifying or improving the offer without you having said anything.
Never give without receiving
Every concession you make should have a condition. "I can lower the price 10% if you commit to 12 months instead of 6." "I can deliver earlier if you pay 50% upfront."
If you give things away without getting something back, you train the other side to keep asking.
The Panamanian cultural context
Relationships first
In Panama, trust is the primary currency. If the other person doesn't trust you, the numbers don't matter. Before negotiating terms, build the relationship. Ask about family, how things are going, show genuine interest. It's not manipulation — it's the culture.
Avoid direct confrontation
Panamanian culture avoids open conflict. A direct "no" comes across as aggressive. Instead of saying "that's impossible," say "let me see how we can make that work." You maintain your firm position while keeping a soft tone.
Sense of time
"Right now" in Panama can mean today, tomorrow, or next week. Don't use this as an excuse to be informal with your commitments. Being the person who delivers on what was agreed, at the time agreed, immediately sets you apart in the Panamanian market.
After the negotiation
Send an email summarizing what was agreed. Include deadlines, responsible parties, and conditions. In Panama, verbal agreements carry weight, but written ones protect you. If there are misunderstandings, it's better to discover them in the first 24 hours than three months later.
Negotiation is learned through practice
Nobody is born knowing how to negotiate. It's a skill developed with technique, practice, and feedback. If you want to improve your negotiation ability with practical exercises and real scenarios, at Crezendo we offer workshops on negotiation and management skills.
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Want to negotiate with more confidence and better results? At Crezendo we offer hands-on negotiation and leadership workshops for professionals and teams. Contact us and let's talk.
