Written by Marijn Overvest | Reviewed by Sjoed Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
20 Price Negotiation Tactics For Better Deals in 2025
As taught in the Negotiation Course for Procurement Professionals / ★★★★★ 4.9 rating
What is price negotiation?
- Price negotiation is a discussion of the product’s or service’s initial cost to secure a price that satisfies both parties.
- It enables procurement teams to strategize their spending plan, leading to optimized finance activities.
- Effective techniques, thorough preparation, and a collaborative approach ensure a successful negotiation.
Price Negotiation: Explained
Everyone in the procurement industry is familiar with price negotiation as it is a usual occurrence when procurement professionals purchase materials or supplies. During price negotiation, there are two roles that arise: buyer and seller.
The purpose of price negotiation is to discuss a price that is agreeable or acceptable to both parties. Upon the end of the negotiation, either accept or lose the deal.
In a price negotiation, procurement professionals also face another dilemma of losing the sale. Therefore, the obvious BATNA will be to walk away from the deal. However, there is always room for haggling strategy. Your BATNA will help you calculate your reservation price which is the highest price you are willing to pay in the negotiation.
It is also important to be polite and sincere throughout the negotiation process. You must also be willing to accept no for an answer.
Effective price negotiation skills are critical for every procurement professional. Thus, our Negotiation Course For Procurement Professionals can help you master your skill in negotiating prices effectively. Enroll now and be the best negotiator that you are meant to be!
How to Negotiate Price?
Do you want to pay less or sell more in a negotiation, then these are some negotiation tactics that you can use in negotiation:
1. Back Burner/Postpone
This tactic is used when you want to put off an item or issue you had not planned for to a later stage in the negotiation. Give yourself time to work out a position regarding the issue.
Additionally, professionals use this tactic when it appears that a particular issue might prevent the negotiation from continuing. An example of this would be: Proposing “let’s leave that for the moment” can stop this from happening. As the negotiation progresses, the issue usually resolves itself and does not need revisiting.
Counter Tactic
To counter this tactic, you may insist to the other party that it will not be possible to move on unless you can agree on the issue at hand. You can also apply Deadline Pressure by setting a clear deadline for resolving the issue to prevent indefinite postponement. Emphasize the consequences of delays and link the postponed issue to other key negotiation points to compel the other party’s engagement. Additionally, you can use Reverse Postponement, turning the situation around by suggesting that one of their key points should also be delayed until this matter is resolved. This tactic forces them to reconsider their postponement strategy and encourages them to engage immediately in finding a solution.
2. Brinkmanship/Bluffing
Going right to the edge requires great skill not to fall over. One way is to try and get the other party to see the edge as being closer than it is.
However, you must beware of bluffing. If you are going to bluff, you should be aware of what to do once your bluff is called.
Bluffing is a tactic I frequently use as well. However, there is a significant difference between bluffing and lying.
Bluffing usually involves being prepared to take action if the supplier does not agree to your proposal. I often combined it with my BATNA or the sticks I had prepared for the negotiation.
For example, I would request a specific purchasing discount and threaten to switch to another supplier if the current supplier did not comply. Whether you ultimately follow through is always in question.
Bluffing generally concerns things you might do in the future. Lying, on the other hand, typically involves distorting facts or making promises you cannot keep. For instance, claiming you expect to sell 1 million units when you know it will be no more than 100,000.
This might secure a lower price initially but cause a lot of trouble later. Bluffing is a good tactic; lying should always be avoided. It damages the relationship and is counterproductive in the long term.
Counter Tactics
You can use these methods when you encounter this tactic:
- When someone uses this tactic against you, you must remain cool and calm.
- You may also use the counter tactic we discussed earlier in the “Dropping the bomb” tactic.
- You may say that if that is the case, then it would appear that it will not be possible to achieve a negotiated agreement.
- Begin to gather your things up or wait for a response.
In addition to the four counter tactics mentioned earlier, another response I often used, especially when I knew the power balance was in my favor, was to counter the bluff with a bluff.
For instance, when I received emails or letters from various small suppliers announcing their price increases effective January 1st, I would respond by stating that I would delist all their products as of January 1st.
Within five minutes, I would receive calls from most of them, often indicating that the price increase was not as steep as initially stated.
3. Hanging Gramophone Record
This tactic uses an approach wherein you repeat your demand over and over again in the negotiation. This may help you to win because the other party might become frustrated with your constant repetition and feel that no progress can be made unless this obstacle is removed.
It emphasized the need for persistence in negotiation and a refusal to accept “no” at its face value. For instance, I once negotiated a bulk order and kept repeating, “We need a 15% discount to proceed.” No matter what argument the supplier made, I stuck to my line. Eventually they agreed and just move forward.
Additionally, the hanging gramophone record tactic is employed when the negotiating parties are close to an agreement. The other party will claim that they cannot meet your price no matter what they try.
This may also be reinforced by showing evidence like a memo about cost-cutting from their top management. Psychologically speaking, the printed word seems to carry more authority than spoken words.
Counter Tactics
You can use these methods when you encounter this tactic:
- Take care not to believe everything that is shown or told to you.
- Decide if you can meet the demand.
- Decide if you still want to reach an agreement with the other party.
- Insist that if you will meet their price, you will gain some concessions in return.
- Reconfigure the negotiation for you to explore various alternatives to retain your desired position and maintain your objective in the negotiation.
- Use your broken record tactic.
4.Hypothetical Question
A helpful technique for conversations and negotiations is to use the “what if” approach. This method allows you to test your assumptions, gauge the other person’s commitment, and move negotiations forward when it seems like there’s no more leeway.
For instance, “If I were to give you this, how would you feel about doing this for me?”
When you ask this question, you’re not making an offer yet; you’re using words to gauge the other party’s flexibility and to explore potential agreements.
This can help explore new ideas and break deadlocks without making commitments. It can be beneficial during the testing stage to explore alternatives and shape a deal.
This tactic is one of my favorites, and it has helped me close several deals that were completely stuck. The best part about this tactic is that you have almost nothing to lose.
It works especially well when your counterpart may not have full authority but knows there is still room for negotiation.
If you find it too early to escalate (which is also a good tactic), this is a great way to determine if there is still flexibility on the other side.
Counter Tactic
For this, none is required. It is generally a good tactic, to be used by either party to arrive at the best mutually agreed solution.
5. Deadlines
This tactic can be imposed or agreed upon and can encourage parties to concentrate on creative solutions while realizing that a concession is necessary.
An example for this would be: When a supplier told me, “This special rate expires today.” And instead of panicking, I replied, “That’s fine, I’ll review my options.” A day later, they called me back, still offering the same price.
Counter Tactics
You can use these methods when you encounter this tactic:
- Make a note of the deadline.
- Always expect this to happen at some stage, and even play a game with yourself to guess when they will launch it to you.
- Avoid further discussion. However, be a little brisker in your demeanor.
- It is their deadline and not yours. So remind them that their deadline is getting near.
6. Russian Front
In this tactic, you are presented with two options. The first one is awful that you will agree to the second option.
For example, during salary negotiations, HR gave you this options, “You can either take a lower salary with a bonus or a higher salary with no benefits.”
Counter Tactics
These are some ways to counter this tactic:
- Do not agree to their option.
- Ask for more options.
- Suggest some options of your own.
7. Silence
Silence is a good tactic to diffuse emotions in the negotiation. Generally, many people are uncomfortable with it. Thus, they will have the urge to fill the “silence” and when they usually do, it weakens their position.
An example of this would be: I once made a price offer and then stayed silent. The other party fidgeted, then lowered their price without me saying another word.
Counter Tactics
These are some ways you can do to counter this tactic:
- Use the broken record tactic.
- Use even more silence in return.
- Tell them that you would appreciate a response to your last statement.
- Smile and wait for them to fill the void.
8. Salami
In this tactic, you feed difficulty or bad news in thin slices, piece by piece. This usually produces concessions because the other party wishes to get away from an increasingly uncomfortable situation.
For example, a contractor kept adding “small” extra charges—first for permits, then for materials. I stopped the process and said, ” Let’s lay out all costs now.” That ended the surprise fees.
Counter Tactics
To counter this tactic, you can use the following methods below:
- If you feel like this is occurring, stop the slippery slope at this point.
- Tell them the agreement is impossible without putting all the issues at the negotiation table.
- Withdrawing previous concessions and telling them the new information puts the whole negotiation in a new light. Thus, the whole negotiation has to be reconsidered.
9. Why
You should not be afraid to challenge the other party, especially at the early stage of the negotiation when positions are being defined.
For example, when you’re negotiating with a supplier and they insisted on a mandatory fee. Instead of agreeing right away, ask them first why is it necessary.
However, you must remember not to use it excessively as it can cause frustration and inhibit the other party from checking some other alternatives.
Counter Tactics
These are some ways to counter this tactic:
- Be prepared to answer any challenge confidently and easily.
- Challenge back in equal measure.
10. Physically Disturb Them
This uses various physical non-violent movements to throw the other party off balance. Examples are lean inventory across the table, changing the normal seating pattern, sitting close to them, and asking them not to smoke if they usually do.
Counter Tactics
You can use these methods when you encounter this tactic:
- If possible, try to control the room so that the other party has no intimidating options to use against you.
- For those that are more behavioral, simply laugh quietly to yourself.
- Take personal pleasure that their tactic will not affect you other than strengthening their position.
11. New Faces
This tactic refers to a change to another team or refers to other individuals or groups. An example for this could be: When you’re in a negotiation and was close to finalizing the deal and the other side suddenly introduced a new senior manager who acted unaware of the prior discussions.
Counter Tactics
These are some methods you can use to counter this tactic:
- Ask them the reason for the change.
- Bring in new faces on your own.
- Bring in your superior.
12. Building Block Technique
The building block technique can be used in various ways. You could start by asking about the cost of a portion of your needs.
Then, during face-to-face negotiations, request pricing for different quantities leading up to your actual requirements.
This approach makes the other party more open to accommodating your full needs when you finally reveal them.
Let me give you an example, I once asked a vendor for pricing on a small order. Once they committed, I kept increasing the volume in stages until I reached my actual requirement. By that point, they were more inclined to honor the lower price for the larger order.
Counter Tactics
When this tactic is used against you, you can do the following:
- Avoid giving your best prices first. Always leave room for maneuver.
- Try finding out about the minimum and maximum order quantities in advance of quoting.
- Have clear and published price breakpoints.
- Ask about extreme cases before quoting for the level of volume or contract length.
13. Deliberate Misunderstanding
This tactic is employed to gain time to think after receiving a complex proposal. An example of this would be: By saying, “Could you run through that again?” you either gain additional time to consider the proposal or discourage the other party from using such complicated tactics.
Counter Tactics
You can use these methods when you encounter this tactic:
- Always get details that have been agreed upon in writing.
- If you did not say what they insist that you have agreed upon, refuse it firmly.
- Reopen the negotiation on the basis that the whole deal will need to be reviewed if the extras that they want are to be included.
- No matter how urgently you need to agree on a deal, never appear flustered.
14. Dunce
Undermine their confidence by suggesting that they have not done their homework diligently or have not been accurately briefed. For example, when a vendor told you that you didn’t fully understand market rates.
If you can demonstrate this, it’s possible to sow seeds of doubt about the matter and undermine their confidence, making them feel inferior. Just make sure you can back up any claim you make, or your credibility will suffer.
Counter Tactics
You can try to use these methods when you encounter this tactic:
- Be prepared.
- Challenge them back.
- Stay calm and request evidence.
- Reaffirm your expertise.
15. Defense in Depth
This tactic uses several levels of staff or management before the issue reaches its final destination.
At each level, it is hoped that additional information will be obtained. This must be done carefully to not undermine your authority.
Counter Tactic
You can prevent this at its early stages by asking whether the other party is in a position to commit the company or who else might be involved with the decision-making.
For example, when I was negotiating a contract, and every time we reached an agreement, they said, “We need to check with senior management.” Instead of waiting, I asked, “Who has the final approval?” and insisted on negotiating with directly.
16. Flinching
This tactic does not seem professional, but doing it at a proposal or request is a good way of signaling to the other party that what they have suggested is unacceptable. If you are uncomfortable with flinching, you can react with surprise or silence.
Counter Tactics
These are some of the ways that you can use to counter this tactic:
- Use silence.
- Re-state your case and keep calm and composed.
- Wait for a verbal response.
- Recognize that they are probably doing it deliberately. So just smile because you know all too well that it will not work on you.
Personally, flinching is not my favorite tactic. It’s crucial to indicate when you disagree with their proposal. Flinching, on the other hand, often quickly becomes a playacting that you see through easily.
A great example to this would be with junior negotiators as I frequently noticed this happening to them. In response, I would either indicate that it seemed we had received the same training, or I would point out that I noticed the person was acting and ask if they were done with this game.
In my view, this helped create a more open and honest communication during the negotiation.
17. Guilty Party
This tactic implies that the other party is breaking a code, an agreement, or refusing something conceded by others. An example of this would be, a client telling you, “All our other suppliers accepted this clause.” or “We’re really struggling with our budget this year, and agreeing to this price would put us in a tough spot.”
Counter Tactics
These are some ways you can do to counter this tactic:
- If you are wrong, then rectify it yourself.
- Bring the conversation back to a level of what is reasonable.
- Remember that nobody can make you feel guilty; we make ourselves feel guilty.
18. Good Guy/ Bad Guy
This tactic is often demonstrated on most US cop shows. A great example for this is when in a meeting with two or more representatives, one may behave rudely, ask challenging questions, or make high demands.
Before he loses face by having to back down, another team member takes over who is pleasant and agreeable. This needs close cooperation and pre-planning between members to carry out.
Counter Tactics
These are the methods you can do if you encounter this tactic:
- Expose them for what they are doing. They know they are trying to pressure you into conceding something, so let them know it won’t work.
- Remember that they both have the same interest in mind.
- Negotiate with the good guy as if he is the bad guy because, in reality, they are both working together.
19. Headache
This is an emotional appeal not to press a point and is designed to make the other party feel it would be unreasonable to do so. For instance, when there’s a pricing discrepancy, and instead of addressing the issue, a supplier said, “This whole negotiation is giving me such a headache. We’ve been discussing this for hours—I don’t know how much more I can take.”
Counter Tactics
These are the things you can do if someone uses this tactic against you:
- Show empathy with the other party and use humor as appropriate.
- Remind them that you both need to resolve the issues at some point.
20. Joker
This tactic suggests that the proposals made by the other party are ridiculous and cannot be taken seriously. Using phrases such as “You’ve got to be joking” or “Pull the other one.” are an example on how this tactic could be done.
Counter Tactic
These are some methods you can use to counter this tactic:
- Use the same tactic.
- Tell them that if they cannot meet your demands then there is no point in negotiating further.
- Another tactic I frequently used in response was to send the party away and indicate that they could return when they had a reasonable proposal.
Preparing For Price Negotiations
Of course, you should not bring a knife to a gunfight. Going into a negotiation well-prepared is one of the best ways to increase your desired outcome. here are some ways to prepare for your upcoming negotiation:
1. Choose a strategy
You should decide on a strategy to use in a negotiation so you know how to approach the other party once the negotiation starts.
Having a strategy shows the other party that you know what you are doing and gives you a predefined structure for your dialogue.
2. Know what you want to achieve
You should know what you want to achieve before you enter a negotiation to properly steer the negotiation in the proper direction.
Setting the price that you want and refusing to settle for anything less strengthens your position and encourages the other party to adjust to your requirements.
3. Due diligence
Due diligence is a way to investigate the other party to know vital information about them. When you perform due diligence, you discover useful information relating to what the other party wants from you or how much they are willing to pay for something.
Tips on Preventing a Heated Price Negotiation
Remember not to lose your cool. Here are some tips on preventing a heated price negotiation.
1. Plan
Plan all your negotiations in detail. Planning is an important aspect of successful negotiation. Additionally, if you plan things, you will know what to avoid to prevent a heated price negotiation.
2. Negotiate on value
You should know the value of what you are selling and the issues that you can negotiate. You should be prepared to communicate all the tangible value of those issues to your customers.
3. Shared interest
You should not forget that the other party’s at the table because he or she has something to gain from it. Use this shared interest as a common ground when things go off track.
4. Trade
You should ensure that you get something of equal or greater value if you give something up. Know the value of the negotiable items on the table. If you do not know the cost of the trades you are making, you may give away more than you should.
5. Walk away position
Know the issues that you are not willing to negotiate and at what point it is not worth it to continue the negotiation. You should remember that you can always walk away from the negotiation, especially if you reach an impasse.
6. Not taking it personally
Everyone has a job to do. Getting defensive will only serve to increase the distance between you and the other party. You should know that you are talking about your and the other party’s interest in the negotiation and not their personal matters.
Conclusion
Mastering price negotiation is crucial for procurement professionals. Effective techniques, preparation, and maintaining a collaborative approach ensure successful negotiations. Our “Negotiation Course for Procurement Professionals” is tailored to hone your skills for optimal results.
I have created a free-to-download negotiation preparation toolkit template. It’s a PowerPoint file that can help you negotiate prices for better deals. I even created a video where I’ll explain how you can use this template.
Frequentlyasked questions
What is price negotiation?
Price negotiation is a discussion seeking to get an agreeable or acceptable price for both parties.
Why is price negotiation important?
Negotiating price is important so you can get the best possible price you can get in the negotiation. Thus, allowing you to save more and invest the additional funds for other things that will enable your company to grow more.
How do you negotiate prices?
The golden rule in negotiation is to get the right information about the other party. If you know their background and interest, you will surely know how to position yourself which will allow you to steer in the direction where you want the negotiation to go.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
