Whether you started your career with all the bargaining power or none, you probably learned something that doesn't work. And the worst part is that either way, you think you're negotiating well.
There are two common ways to start a working life, and both teach you badly.
The first is joining a big company young, in a position that gives you bargaining power you did nothing to earn. You're on the side that decides who to buy from, and across the table there are suppliers who need the account.
There, the company rewards you for squeezing. Every point you shave off a supplier counts as a win. And you walk out of those meetings convinced you're a good negotiator.
You aren't. You're using the weight of the brand you represent, not a skill of your own.
The second is the opposite. Joining a small company that depends on two or three big clients, where every client request gets accepted because losing that account would be fatal.
There, you learn that negotiating means putting up with things. That asking is risky. And that the relationship holds together by giving in.
That isn't true either. And the habit sticks around for years after the situation has changed.
What looks different from the other side
Most people go through one of those two sides, not both. That's why so many negotiators are convinced their way is the right one.
Someone who lived on the side with the power and then opens their own business gets a surprise. Suddenly they're the one who needs the account, and they find out the tactics they used to use feel very different when someone uses them on you.
And someone who lived on the weak side, once they finally have a strong position, tends to do one of two things: get even for what was done to them, or keep giving in out of habit.
Neither reaction is good for the business.
What we believe at Kiin Hub
It comes down to being straight with people.
Your supplier has to win. Your client has to win. And your profit shouldn't be eating into the share that belongs to the other side.
That isn't idealism, it's long-term arithmetic. A supplier working without a margin is going to let you down. They'll cut corners wherever they can, they'll serve whoever pays better first, and the day they find something better they'll leave without warning.
And a client you squeezed down to the last peso doesn't come back. They honored the contract and that was the end of it.
A good deal isn't the one you won. It's the one both sides want to repeat.
Five things that actually work
Find out what the other side needs before you talk price. Sometimes what's pressing for them isn't paying less, but locking in a date, or getting payment terms, or having you solve something that isn't in the quote. If you ask, you can sometimes give something that costs you nothing and is worth a lot to them.
State your number and explain it. A figure with nothing behind it invites haggling. A price with reasons changes the conversation: they stop arguing about how much and start discussing what's included.
Learn to say no without closing the door. I can't do it at that price, but I can with this scope. That leaves the other side making a decision instead of feeling turned down.
If you're going to give ground, make sure it shows. Dropping your price without saying anything teaches them the first one was padded. Dropping it while explaining what you're giving up and why teaches them you're making an effort.
And know your walk-away point before you sit down. Which deal no longer works for you. If you don't know, you'll accept anything just to close, and it shows.
Almost nobody starts by understanding the other side's position
Ask how much the other side needs to make.
It sounds odd, and it works. When you ask a supplier how much margin they need for the job to be worth it, two things happen: they tell you the truth more often than you'd expect, and the conversation stops being a tug of war.
At that point you're no longer trying to take value from each other. You're seeing whether the deal works for both.
And if it doesn't, better to know before signing than in the third month.
When you do need to push
Being straight with people as a principle doesn't mean accepting anything.
You push when the other side is overcharging you because they think you won't notice. When they slip in costs that weren't there. When the deal changed and nobody told you.
At that point you're not fighting over a point of margin. You're correcting something that wasn't the deal.
The difference is in what you're after: if it's keeping what belongs to the other side, that's squeezing. If it's making sure what was agreed gets respected, that's simply looking after your business.
Why this matters more in a small city
In Playa everyone knows everyone. Your supplier today sells to your client tomorrow, and the person who recommended you talks to all three.
A negotiation where the other side walked away bruised doesn't stay between the two of you. It gets told.
And it works the other way too. People who are easy to work with get better prices, better timelines and more referrals, even if they never asked for any of the three.
In a small market, reputation does the work that negotiating skill can't reach.
At Kiin Hub we have the Mesa Kiin: putting your case in front of people who know different things. Tax and accounting, labor, value proposition, process and technology. If you have a negotiation that's stuck and you want a fresh pair of eyes on it, bring it.
Share this article