Good negotiation is not about pushing harder or applying a list of “psychological tricks.” It is about understanding what each party needs, which alternatives exist, which limits should not be crossed, and how to turn an exchange into an agreement that can actually be executed.
This guide also absorbs the former page on negotiating with suppliers. The fundamentals are the same; the interests, constraints, and objective criteria change with the case.
Prepare before discussing price
Before a meeting, write down:
- the outcome you want;
- the minimum outcome you would accept;
- what is negotiable and what is not;
- what information you need from the other party;
- what authority you have to commit;
- which alternative you will pursue if there is no agreement;
- which objective data can help evaluate proposals.
Preparation does not guarantee an outcome, but it reduces the chance of accepting terms impulsively or inventing positions during the conversation.
BATNA: your alternative if there is no agreement
BATNA is the best alternative available if negotiation ends without agreement. It is not a threat and not necessarily something you should reveal.
Examples include:
- requesting a second quotation;
- postponing a purchase;
- reducing scope;
- using another supplier;
- keeping the current situation for a period;
- pursuing another employment opportunity.
Evaluate real alternatives, not imaginary ones. “I can probably find something better” is not a useful BATNA if you have not confirmed that alternative exists.
Distinguish positions from interests
A position says “I want 30 days.” The underlying interest may be “I need predictable cash flow.” A position says “I will not lower the price.” The interest may be “the margin cannot support that discount.”
Useful questions include:
- What problem are you trying to avoid?
- Which condition matters most to you?
- Which part of the scope creates the most value?
- Which risk are you trying to reduce?
- What would need to change for this proposal to work?
Understanding interests creates more combinations than arguing about one number.
Use objective criteria
When possible, support proposals with verifiable information:
- specifications;
- comparable quotations;
- delivery times;
- service levels;
- quantities;
- logistics costs;
- scope and exclusions;
- technical standards;
- payment terms;
- risks assumed by each party.
Do not invent a “market price” from one listing. Compare equivalent scope and conditions.
Negotiate packages, not isolated concessions
A price reduction can be exchanged for volume, term, scope, payment structure, or reduced risk. Frame conditional proposals:
- “If volume increases to X, we can review Y.”
- “If we remove this part of the scope, the price changes this way.”
- “If you need that date, resources or conditions must change.”
Not every tiny movement needs an immediate exchange, but significant concessions should be understood within the complete deal.
Avoid treating negotiation advice as universal formulas
There is no universal rule requiring you to listen exactly 70% of the time, speak 30%, always anchor first, or use silence to make the other person uncomfortable.
Listening, asking questions, summarizing, and controlling pace are useful skills. Turning them into rigid formulas can cause you to miss important information or damage the relationship.
An anchor can influence a conversation, but it can also backfire when it is absurd, aggressive, or destroys credibility. Decide based on information and context.
Negotiating with suppliers
Compare more than price:
- specification and quality;
- availability;
- partial or complete delivery;
- warranty;
- support;
- return conditions;
- payment method and term;
- currency and exposure to changes;
- dependence on one supplier;
- continuity and replacements;
- required tax or contractual documentation.
The cheapest supplier can have a higher total cost when it creates delays, failures, or rework.
Negotiating services
Define exactly what the service includes:
- deliverables;
- number of revisions;
- information the client must provide;
- dates and dependencies;
- ownership and usage rights;
- post-delivery support;
- out-of-scope work;
- acceptance criteria.
Many conflicts described as “negotiation problems” are actually ambiguous-scope problems.
Do not turn nationality into a negotiation technique
Panama contains very different sectors, companies, and people. Avoid assuming that “Panamanians negotiate a certain way,” that a direct “no” is always aggressive, or that punctuality has one cultural meaning.
Adapt to the actual counterpart. Ask about process, responsibilities, and expectations instead of relying on stereotypes.
What does matter in Panama, as in any jurisdiction, is verifying contractual, tax, labor, or regulatory consequences relevant to the agreement. When risk justifies it, consult a qualified professional.
Document the result
After an important negotiation, record:
- parties;
- scope;
- quantities;
- prices and currency;
- taxes when applicable;
- dates;
- responsibilities;
- payment terms;
- acceptance criteria;
- warranty or support;
- agreed changes;
- validity of the proposal.
A recap email helps, but it does not replace a contract when the agreement requires one.
What to do when there is no agreement
Not every negotiation should close. If a deal falls below your limits, transfers risks you cannot accept, or requires promises you cannot fulfill, walking away can be the right decision.
Closing for the sake of closing is not a useful success metric.
How to practice
Use fictional scenarios:
- prepare objectives, limits, and BATNA;
- give different information to each participant;
- negotiate for a limited time;
- record proposals and concessions;
- compare the deal with the initial alternatives;
- review which questions were missing;
- write the final summary as if the case were real.
Feedback should evaluate clarity, listening, information quality, and sustainability of the agreement—not who “won.”
Does Crezendo offer negotiation workshops?
Do not assume so from this article. Use Contact, describe whether the interest is commercial, supplier-related, sales, leadership, or another context, and ask what training is currently available.
Frequently asked questions
Should I disclose my BATNA?
Not necessarily. What matters is knowing and evaluating it correctly. Revealing it is a strategic decision for the specific case.
Should I make the first offer?
It depends on the information available and the context. A reasoned first proposal can structure the discussion; an unsupported number can damage credibility.
Does negotiating mean finding the midpoint?
No. A deal can change scope, timing, risk, quantities, and conditions rather than simply splitting a price difference.
Is a verbal agreement enough?
It depends on the type of agreement and applicable law. For material commitments, document the terms and obtain professional advice when appropriate.
