The Unknown Side of Sales Negotiation for Business Leaders: Let’s Make a Deal 

Did you know that the vast majority of business executives are not trained negotiators—and often leave significant value on the table? If you’re reading this, statistically, that might include you. 

So how do we fix that? 

We start by understanding the foundation of professional negotiation. 

Negotiation Is Like Basketball 

An analogy I often use: negotiation is like basketball. 

In a pickup streetball game, skill and creativity can shine—but it’s chaotic and unstructured. Compare that to an organized high school, college, or professional basketball game where there are systems, strategies, and a clear rulebook. 

Negotiation is similar. Haggling over a T-shirt with a street vendor or selling an item on Facebook Marketplace may feel like negotiation—but it’s very different from the structured, high-stakes environment of business-to-business sales. 

What Is Negotiation, Really?

A common definition: Negotiation occurs when one party is dependent on another for a resource or service they cannot fully or efficiently provide themselves. 

Once that dependency is clear, the next challenge becomes cost, availability, and value. 

In business settings, negotiation typically occurs because both sides bring something the other needs—creating a natural opportunity for exchange. 

Importantly: Negotiation is part of the sales cycle, but it’s not the same as selling or marketing. 

Two Types of Negotiation

There are two primary forms of negotiation: 

1. Distributive (Common): Dividing the existing resources — often transactional in nature. 
2. Integrative (Professional): Finding ways to create more value together — then dividing it. 

All negotiations impact two key dimensions: 

• Economic value 
• Relationships and trust 

The Mindset of a Great Negotiator 

Great negotiators don’t just push their own agenda—they look outward. 

Start by asking: 

• What are the other party’s Interests & Priorities (I&Ps)? 
• What is their Perspective? 

And before the discussion begins, prepare these essentials: 

• BATNA – Best Alternative to a Negotiated Agreement: What will you do if a deal can’t be made? 
• Reservation Price (RP): What is the absolute maximum (or minimum) you’re willing to pay (or accept)? 

For example: If your RP for a sports car is $50K, that’s your hard limit. You don’t cross it. You base it on logic, research, and emotion-free analysis—and you never move it mid-negotiation. 

Deals happen when there’s overlap in both parties’ RPs—this is known as the Positive Bargaining Zone.  

No Overlap? Make the Pie Bigger 

If a positive bargaining zone doesn’t exist, then you need to add value—transform the conversation into an integrative negotiation. Find creative ways to align interests or introduce additional elements that sweeten the deal.

Your Negotiation Prep Checklist 

1. Identify the resource or outcome you need 
2. Assess your BATNA 
3. Set your Reservation Price 
4. Establish your Target Price (your ideal outcome) 
5. Identify potential concessions: what can you give up to get what you need? 

Final Tips for Success 

• Reputation and First Impressions Matter: They influence trust and willingness to deal 
• Avoid Ranges and Rounded Numbers: Specific numbers signal confidence and preparation 
• Beware the Winner’s Curse: If your first offer is instantly accepted, it was probably too generous 
• Avoid the Chilling Effect: Don’t start with an extreme offer that shuts down the conversation 
• Don’t Negotiate Against Yourself: Make your offer, then wait. Be patient. Don’t double-offer or quickly concede 

Remember: the other side has a BATNA and RP too. 

Negotiation isn’t a natural talent—it’s a learned skill. With practice and preparation, you can stop leaving money on the table and start creating more value in every deal. 

Let’s make a deal. 

SalesGlobe is a leading sales effectiveness and data-driven creative problem-solving firm. We specialize in helping Global 1000 companies solve their toughest growth challenges and helping them think in new ways to develop more effective solutions in the areas of sales strategy, sales organization, sales process, sales compensation, and quotas. We wrote the books on sales innovation with The Innovative Sale, What Your CEO Needs to Know About Sales Compensation, and Quotas! Design Thinking to Solve Your Biggest Sales Challenge.