Negotiations begin long before the meeting. How to prepare to make them successful?

Negotiation is often seen as an art—something that relies on improvisation, the ability to influence others, and somehow getting through the meeting. In reality, negotiation is a skill that every salesperson can learn and prepare for—well before sitting down at the negotiating table. Good preparation is the foundation of success, so don’t underestimate it. In this article, you'll learn how to do it right.

Why Preparation Matters

In his book Negotiating Life, Jeswald W. Salacuse writes that the difference between successful and unsuccessful negotiations lies in preparation. If one or both parties are not well prepared, they usually fail to reach a mutually beneficial agreement.

Of course, flexibility is also essential in negotiations. But if you're not prepared for the scenarios that may arise, your chances of success are slim.

Moreover, with good preparation:

• You'll stay calm because you know you've done everything possible to ensure a successful outcome. Confidence is especially important in negotiations.
• You'll show the other party that you’re well-prepared. This reduces their inclination to bluff or play games.
• You'll gain a strong starting position by considering your options and alternatives in advance.

5 Steps to Prepare for a Negotiation

Michal Musil from the GrowJOB Institute, when describing the importance of preparation, paraphrases a quote by Abraham Lincoln: if he had eight hours to cut down a tree, he would spend six sharpening the axe. You too should enter negotiations with a sharpened axe—it will lead to better results.

Sharpening your negotiation axe consists of 5 steps:

Step 1: Prepare Your Plan B

Start by asking yourself what you'll do if the negotiation doesn’t lead to an agreement. In sales, this plan B is known as BATNA (Best Alternative to a Negotiated Agreement), and it’s a key negotiation concept.

The idea is that if you have an alternative to a failed deal, you’re less dependent on the outcome—giving you more confidence at the negotiation table. It's a different situation when your calendar is fully booked for the next three months versus when this is your only meeting and you're heavily invested in it. Simply put, when you’re not relying on just one card, you avoid unnecessary concessions and increase your chances of reaching a better deal.

Follow these steps:

• Identify the alternatives you have—for example, offering the same proposal to another client.
• Choose the option that best aligns with your goals.
• Try to strengthen your plan B—for instance, by confirming that another client is still interested in the offer.

Step 2: Set Clear Negotiation Goals

Salespeople often make the mistake of entering negotiations without clearly defined goals. Or they set vague objectives, such as: “I want to negotiate a better price."

Don’t sell yourself short—instead, define three goals as part of your preparation:

• A pessimistic goal (your previously mentioned walk-away point), which tells you when the negotiation is no longer worthwhile and it’s time to walk away—this is the outcome you aim to avoid.
• An optimistic goal, which represents your ideal outcome and the direction you'll steer the negotiation toward.
• A realistic, middle-ground goal, which is achievable and you have a strong chance of reaching.
  
  

In other words, set boundaries for the range you want the agreement to fall within. And remember, in sales, it’s better to have no deal than a bad one.

Step 3: Pay Attention to the Opponent’s Cards

In any game, success depends not only on the cards you hold but also on those your opponents have. The same applies to negotiations. Try to identify your counterpart’s BATNA—what alternatives do they have, and how important is it for them to reach an agreement with you? What will they do if they lose you during the negotiation? Understanding both your position and theirs gives you a strategic advantage.

The BANT qualification methodology can help here. It’s used to estimate how likely a client is to buy from you and whether it’s worth investing your time. It evaluates four key criteria:

1. Budget – How much can the potential customer spend on your services?
   
   
2. Authority – What does the customer’s decision-making process look like? Are you negotiating with someone who has the power to decide?
   
   
3. Need – How much of a priority is solving this issue for the client? What happens if they don’t solve it?
   
   
4. Timeline – How urgently do they need a solution? Is the timing tied to another event on their end
   
   

By answering these questions, you’ll understand whether the lead is worth pursuing and how to prepare for the negotiation. If the other side has a strong need to solve a problem, that works in your favor. And if they’re in a hurry, they’ll be less inclined to waste time negotiating with other vendors.

Step 4: Identify Your Partner’s Walk-Away Point

A properly conducted BANT qualification will also help reveal your negotiation partner’s walk-away point. You’ll be able to better estimate when they are likely to back out of the deal—giving you a clearer sense of how far you can push in the negotiation.

Step 5: Find the Zone of Possible Agreement

If you know both your own and your partner’s walk-away points, you can identify what’s known as the ZOPA (Zone of Possible Agreement). This is the range where negotiations can take place and where a mutually beneficial deal is possible.

Be prepared for the negotiation space to be fairly narrow. That’s not necessarily a problem—as long as both parties are well-prepared for it.

ZOPA is often illustrated with a pie metaphor. Imagine you’re offering a deal worth CZK 120,000. Your BATNA is to offer it to another client, and your walk-away point (the lowest you’ll go) is CZK 100,000. Meanwhile, your client has another offer on the table for CZK 110,000 and is trying to negotiate a better deal with you.

Their walk-away point is CZK 110,000. The interval between your two walk-away points forms the ZOPA—a “negotiation pie” worth CZK 10,000. You can either try to claim as much of the pie as possible, or you can aim to divide it in a way that maximizes value for both sides.

Get Even Better Prepared for Your Next Negotiation

To be as successful as possible in negotiations, dedicate sufficient time to preparation. Include our free video course, SALESMAJSTR, in your prep—it was created in collaboration with Michal Musil, a negotiation expert and trainer from the GrowJOB Institute.

Or read more articles on negotiation that we’ve already written for you.