Mastering B2B Sales Negotiations: 20 Offensive and Defensive Tactics

I advise you to read this whole article. Toward the bottom, you find a way to get this advanced negotiation training. I have only 40 slots.

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The contact sitting across from me was older than me. He had been very nice throughout our sales conversation. He wanted to buy from me. As we went through my contract, he agreed with every clause, until we reached the page with the investment.

My contact said I would need to sharpen my pencil. I agreed to reduce the investment. He left the office for a few minutes while I waited.

When my contact returned, he had a person from their purchasing department. The purchasing manager said that he would not be able to agree to the investment, suggesting that I lower the price that I had already reduced.

Wanting the deal, I agreed to lower the investment again. A few minutes later, the main contact returned with the CFO, who explained that he would not sign the contract without a lower price, mumbling about their budgets.

A street kid who grew up in an apartment complex, I recognized that I was being hustled. At this point, I stood up and said that I would not lower the investment any more. The CFO signed the contract, but only after taking two bites out of me.

This experience caused me to study negotiation, but not the kind that I learned at Harvard Business School, using a BATNA (best alternative to a negotiated agreement).

In B2B sales, you often find that a BATNA is not always effective. Winning deals means that you will need to negotiate to win the deal.

How Sales Reps Negotiate

Many, or most sales reps, first negotiate with their own sales manager. Because the sales manager needs the deal, they concede and provide a discount. The sales rep returns to their contact, presenting them with a concession without having gained something of equal value to their company.

You would be better off identifying a number of things you would accept for the lower price, or pinpointing something else your client requires for you to win their business. This strategy will allow you to ask for what you need so you can give your client what they ask of you. By getting something in return for whatever you gave your soon-to-be client, you avoid a concession.

Offenses and Defenses

For the first time, I am going to share my advanced negotiation training. But before we talk about how to get this training, we need to explain that there are offenses and defenses. Let me show you what this content looks like.

Example 1: Highball or Lowball Offense

• Rationale: Bracketing narrows the range of negotiation and directs the conversation toward a more realistic offer.
• Best Defense: Countering with brackets.
• When to Use: When the initial offer is unrealistic or extreme.
• Example: A client offers an unreasonably low price for a premium product.
• Tips to Implement: Stay firm and explain the rationale behind your counteroffer.
• Potential Pitfall: Appearing too rigid or inflexible.

Sample Dialogue

Client: "I'm interested in your premium software package, but I can only pay $500 for it."

Sales Rep: "I understand you're working within a budget. Our premium package is typically priced at $2,000, which reflects its comprehensive features and ongoing support. However, I can offer you our mid-tier package at $1,200, or we could discuss a quarterly payment plan for the premium package."

Client: "That's still way too high. My budget is firm at $500."

Sales Rep: "Let me explain the value you're getting. The premium package includes 24/7 support, customization options, and quarterly training sessions. Even our mid-tier package at $1,200 delivers significant ROI. I can break down the specific benefits for each option to help you make the best decision for your business."

Client: "I see your point about the value. Could we meet in the middle at $900 for the mid-tier package?"

Sales Rep: "I appreciate you considering the mid-tier option. While $900 is still below our standard pricing, I could offer it at $1,050 with an extended support package included. This would give you excellent value, while staying closer to your budget constraints."

Analysis of the Sales Rep’s Performance

• Maintains professionalism, despite lowball offer
• Uses bracketing by offering mid-tier option
• Explains value proposition
• Finds middle ground while protecting margins
• Adds value to justify price

Example 2: Offense Escalation Ladders

• Rationale: Planned concessions ensure reciprocity and maintain balance in the negotiation process.
• Best Defense: Control concessions
• When to Use: When the other party gradually increases their demands.
• Example: A supplier keeps adding new conditions to the agreement.
• Tips to Implement: Plan concessions in advance and maintain a concession log.
• Potential Pitfall: Making unplanned concessions that weaken your position.

Sample Dialogue: Handling Escalation

Supplier: "We need to add a rush delivery fee to the agreement."

Sales Rep: "I understand you're requesting an additional fee. Before we discuss that, let's review what we've already agreed upon."

Supplier: "And we'll need a minimum order quantity adjustment, too."

Sales Rep: "I appreciate you bringing this up. I'm prepared to discuss the delivery fee if we can maintain the current order quantities. Would that work for you?"

Supplier: "Well, we really need both changes..."

Sales Rep: "I can offer expedited payment terms in exchange for maintaining our current order quantities. How does that sound?"

Key Observation: Notice how the sales rep controls the concessions, offering only pre-planned alternatives while maintaining clear boundaries.

Analysis of the Sales Rep’s Performance

• Acknowledges each request without immediately agreeing
• Offers concessions strategically, not reactively
• Exchanges each concession for something of value
• Remains professional and focused on solutions

I have spent a lot of time identifying the offensive techniques that negotiators use to cause sales reps to lower their price. When you don’t negotiate, you reduce your revenue and your commissions, something you should avoid.

I have also studied the defenses that will arm you to identify the offense and understand how to go about countering the tactics that aim to cause you to give concessions.

How to Get This Training

On January 16th and 17th at noon ET. I can only allow 40 people into this training to be able to invite questions and answers. Go here to gain access to this advanced training.