Why is negotiation important: a key skill of successful salespeople

We all negotiate. Every day. And salespeople even more so—practically all the time. Without negotiation, it would be hard to secure better terms, increase profits, resolve misunderstandings, or close deals. Read on to discover why the art of effective negotiation is one of the most valuable sales skills.

What is sales negotiation

And in sales, this is twice as true. Salespeople negotiate on price, contract terms, delivery deadlines, warranties, and more.

Negotiation is therefore a key part of sales. We can think of it as a discussion between two parties that should lead to an agreement—ideally one that benefits both sides.

This means that during negotiation, a salesperson must:

• listen carefully,
• understand the customer’s expectations,
• overcome their concerns or objections,
• and at the same time recognize the value of their own offer.
  
  

Sales negotiation requires excellent communication skills and a fair dose of diplomacy. Through negotiation, you achieve business outcomes, but you also build long-term relationships with clients, resolve misunderstandings, and lay the groundwork for future deals. With the right approach to negotiation, you gain trust and respect—which gives you a better position in your next negotiations.

Why and When Do We Negotiate as Salespeople?

The goal of a salesperson is to sell as effectively as possible—but sometimes, negotiation is about saving the deal. Typically, there are two situations where we negotiate, which also means there are two types of negotiation:

Creative Negotiation

• focused on the future,
• more optimistic, built on trust,
• we tend to lean toward cooperation and agreeing to terms.
  
  

Conflict Negotiation

• focused on the past—on what went wrong and dealing with the consequences,
• we’re in conflict with the client and trying to resolve it,
• more pessimistic, marked by distrust—looking for who did what wrong,
• conflict negotiation is harder to manage without turning it into a confrontation.

Negotiator Archetypes: Tell Me How You Negotiate, and I’ll Tell You Who You Are

In the book Getting to Yes, authors Roger Fisher, William Ury, and Bruce Patton introduce the idea that in negotiation, the enemy is not the other party—but ourselves. We often rely on strategies that sabotage our own interests. We react poorly and make it harder to reach an agreement.

They describe three negotiator archetypes:

• The soft negotiator tries to win over the other side through concessions, kindness, and agreeableness. They make compromises to gain favor, even if it means losing out themselves.
• The hard negotiator, on the other hand, is direct, aggressive, and focused solely on their own goals. They use competitive tactics to push their interests and don’t prioritize the relationship. This type is often called a positional negotiator because negotiating with them feels like a positional trench war. While they might reach a better deal for themselves, they often damage client relationships and fail to find lasting solutions that benefit both sides.
• The principled negotiator is the golden middle ground: soft on people, tough on the problem. They are polite and relationship-focused, but firm on their needs. They stay goal-oriented and seek agreements that fulfill their interests.
  
  

When negotiating, adopt this mindset: be fair, act respectfully, but stay consistent and don’t compromise on what truly matters to you.

The Cost of Not Negotiating: What Happens If You Don’t Negotiate

Salespeople without negotiation skills miss out on opportunities, drive away potential clients, and fall behind their competitors. In the highly competitive world of sales, this translates into significantly weaker results. Simply put: the better the negotiator, the better the salesperson.

That’s why it’s important to have a defined negotiation process, strategy, and tactics within the sales team.

According to a study by Huthwaite International, companies with a structured negotiation process see a 40% increase in net profit. In contrast, those without a formal negotiation process experience a 60% drop in revenue. Surprisingly, 80% of companies, according to the same study, do not have a formal negotiation process in place. This clearly shows that companies investing in negotiation and helping their salespeople improve have a major competitive edge.

So, invest in the negotiation skills of your sales teams and provide them with training, support, and resources to develop the expertise needed to succeed.

More Reasons Why Salespeople Should Improve Their Negotiation Skills

Every salesperson should treat negotiation as one of their most essential skills. We covered other top sales skills in a separate article.

Negotiation isn’t just about better business results and higher profits—it also brings:

• Stronger market position. Good negotiation skills set top professionals apart from average ones. A salesperson who can negotiate well has a competitive edge and a stronger reputation—for themselves and the company they represent.
• Greater confidence and certainty. Securing better terms and closing a great deal is a huge confidence booster. This self-assurance carries over into future negotiations.
• Broader career opportunities. Negotiation skills are highly valued beyond sales. By honing them, you open doors to exciting job opportunities and career growth.
• Better skills for personal life. You encounter negotiation outside of work too. Strong listening and negotiation abilities help you maintain healthy relationships, stand your ground, and achieve goals in all areas of life.

Negotiation Is a Skill You Can Learn

There are many courses, workshops, and online resources that can help you improve your negotiation skills. Watch and learn from experienced negotiators, and practice negotiating in real-life situations. The more you negotiate, the better you’ll become.

We’ve created a free video course called SALESMAJSTR, where instructor Michal Musil from GrowJOB Institute walks you through the most important aspects of sales negotiation.

In upcoming articles, we’ll also take a closer look at how to prepare for negotiations and explore effective negotiation strategies.