Negotiation Skills In Business

Negotiation Skills? Bargaining? Absolutely! We Want Reasonable Prices!

Negotiation skills—or simply, bargaining—are highly valuable in today’s competitive business environment.
One of the most practical applications of negotiation skills in business is securing products or services at reasonable prices.

Remember, our aim is to get reasonable value—not necessarily the cheapest price.
Good negotiation ensures value exchange, not value erosion.

Mastering negotiation skills in business enables entrepreneurs, leaders, and procurement teams to drive better deals consistently.

Understanding the Core of Negotiation Skills in Business

Negotiation is not about manipulation. It is about reaching mutually beneficial outcomes through communication and strategy.
In business, every transaction is an opportunity to negotiate. From supply contracts to customer service terms.

Strong negotiation skills in business contribute to profitability, partnership strength, and long-term growth.
They allow businesses to control cost, manage risks, and maintain healthy margins.

Whether you’re a founder sourcing inventory, or a manager closing service-level agreements—negotiation is key.

Four (4) Principles of Negotiation Skills

Here are four key principles you should understand to strengthen your negotiation skills in business:

1. You Don’t Get What You Deserve—You Get What You Negotiate

Outcomes are not based on fairness—they are based on strategy.
What you get depends on how well you negotiate, not what you feel you deserve.
This is a core reality of negotiation skills in business.

Success in negotiation stems from preparation, clarity, and assertive communication.
Emotion and entitlement do not close deals. Data and delivery do.

2. Never Force—Aim for a Win-Win Outcome

Forcing discounts is a harmful myth.
The best negotiations create mutual value, where both parties gain something meaningful.
You get what you want. The supplier still profits.
If they accept your price, it means it remains profitable for them.

Understanding the other party’s interests is essential.
The best negotiation skills in business involve empathy, timing, and flexibility.

3. Strive for the Best Value in Every Deal

Negotiate the best possible price without compromising quality or relationship.
Secure profits before operations begin.
This reflects strategic negotiation skills in business: always aim to reduce cost without damaging trust.

Every ringgit saved in negotiation becomes margin gain.
Best-in-class businesses embed negotiation into procurement and vendor engagement processes.

4. Wealth Doesn’t Eliminate the Need to Negotiate

Having more capital does not mean spending carelessly.
Why pay full price when negotiation could reduce costs by 50% or more?
Consistently applying negotiation skills in business can directly impact margins and bottom lines.

Great companies stay frugal and deliberate.
They view every transaction through a negotiation lens, regardless of budget size.

Real-World Learning from Business Mentors

Where did I learn these techniques?
From a proven mentor, Dr. Azizan Osman, during the Master Your Business seminar (3–7 December 2014).

During the seminar, we were taught 13 powerful negotiation strategies to use with suppliers.
Then, we were assigned a real-world group challenge: “Extreme Shopping”.

We had to buy 5 items using the strategies taught.
And the result?

Over 60% Average Discount—Achieved Using Strategy

We secured products with an average discount exceeding 60%.
Here’s how we used our negotiation skills in business during the activity:

(1) Always Ask For It

If you don’t ask, you won’t receive.
Never expect sellers to offer discounts without being prompted.
Negotiation requires initiative. It’s a proactive skill.
This first principle is a cornerstone of negotiation skills in business.

Asking opens possibilities. Not asking closes them. Always initiate.

(2) Shop in Groups

Buying as a group strengthens confidence and support.
Each member can contribute to the negotiation process.
For people like me who hesitate to speak up, teammates help boost results.
In practice, this teamwork enhances negotiation skills in business settings.

This technique is often used in procurement clusters and consortium buying.

(3) Buy in Bulk

We bought hats. Normal price: RM35 per piece.
In bulk: RM8 each. That’s an instant win.
We also used the Affiliation Strategy here.

Bulk-buying is a classic use case for negotiation skills in business.
It creates volume leverage, driving price efficiency.

(4) Build Affiliation

We used small talk and connections:
“You’re from Melaka? Same here!” or “Our kids go to the same school!”

Even compliments work: “You look great today!”
We tried that—though it didn’t always work!
Still, this technique builds rapport and trust.
Affiliation is one of the underrated but powerful negotiation skills in business.

Emotional connection can soften price resistance.

(5) Use Strategic Objections

We moved on to buy slippers. Bulk requirement: 12 pairs.
Price tag: RM18++. Market price: RM10 and above.
>We reduced the price to RM4.50 per pair.

We used the “Create a Reason” Strategy to avoid buying 12.
>We said: “These slippers feel uncomfortable,” or “The quality seems low.”

These objections built pressure to offer a smaller bulk option.
This scenario reflects real-time application of negotiation skills in business.

(6) Use “Good Guy, Bad Guy” Strategy

One teammate acted disappointed: “Let’s just go somewhere else.”
A small staged disagreement created urgency.
In the end, we only had to buy 9 pairs. A win for our team.

Simulating conflict or disinterest is a legitimate negotiation tactic when used ethically.

(7) Reuse Past Relationships

For shoes, we reused the Affiliation Strategy.
Our teammate, Mr. Wan Abdullah, had been to the shop before.

Normally, minimum purchase was 5 pairs.
Because of past rapport, we only needed to buy 3.
Price paid: RM18–RM20++. Market value: RM70.
These small moments reflect real negotiation skills in business.

Relationship history lowers resistance. Trust leads to flexible terms.

(8) Negotiate Even the Smallest Items

We bought Hack candies. Buying more led to a better deal.
Even minor purchases benefit from negotiation.

Practice makes perfect. Start small. Build confidence.

(9) Ask Even When Rushed

We bought HiGoat milk and massage oil.
Time was short, so we couldn’t negotiate much.
But we still asked for a discount—and got it.

If we hadn’t asked, we would’ve paid full price.
A reminder that negotiation skills in business don’t require perfect conditions. Just initiative.

Final Thoughts: Turn Skills into Daily Habits

Negotiation is not just a technique—it’s a mindset.
Use these strategies daily in your business interactions.
Never assume value is fixed. It’s almost always negotiable.

Whether you are sourcing inventory or negotiating a business deal,
your ability to apply negotiation skills in business determines how much you save and how far you grow.

The more you practice, the more it becomes second nature.
Embed it in your operations, your conversations, and your contracts.

Your success may depend not only on what you offer—but how well you negotiate it.