Everything is negotiable… until it isn’t.
We’re currently six months into the biggest bid process Legal Engine has ever been involved in.
As you’d expect, there’s been plenty of discussion around pricing, commercial models, implementation timelines, liability caps and procurement. It’s been fascinating to watch because it’s reinforced something I think many of us get wrong.
Negotiation doesn’t start when someone asks for a discount.
It starts with knowing where you’ll stand firm, understanding the value you bring and having the confidence to let the other side do some of the talking.
Here are three things I’d encourage you to take into your next client conversation. Enjoy.
#1. Decide your red line before the meeting.
People often talk about creating a “win-win” negotiation. Personally, I think that’s missing the point.
A good negotiation isn’t about everyone walking away feeling like they’ve won the lottery. It’s about both sides reaching an outcome they can genuinely live with. To do that, you need to know where your red line is.
Before you walk into any commercial discussion, decide what you simply won’t compromise on. That might be your fee, delivery timetable, liability position, payment terms or the amount of partner time you’re prepared to commit.
Because once you’re in the room, pressure has a funny habit of moving your goalposts.
“It’s only one extra workshop…” or “We can probably absorb that piece of work…”
Before long, you’ve negotiated yourself into delivering something you never intended to sell.
The best negotiators define their limits before the meeting starts.
Try this: Before your next proposal or commercial conversation, write down your red line. If the discussion crosses it, stop negotiating and start exploring different options instead.
#2. If they want you, they’ve already told you your value.
We’ve all heard it.
“We’d love to work with you… but you’re more expensive than the other firms.”
Most people hear the second half of that sentence. But what about the first half?
If they genuinely want to work with you, they’ve already decided there’s something about your proposition they value more than the alternatives.
Never negotiate from a position of fear. Always negotiate from a position of value.
Instead of defending your fee, ask:
“That’s great to hear. Can I ask what it is about our proposal that’s making you want to work with us?”
Now they’re explaining your value back to you. They’ll talk about your expertise. Your understanding of their business. Your people. Your approach. The confidence they have that you’ll deliver.
Only then should you move the conversation onto price. And don’t just discuss the cost of appointing you. Help them think about the cost of not appointing you.
What happens if the cheaper provider gets it wrong? What internal time will it cost to fix? What’s the commercial impact of delay, poor advice or having to run the project again?
If, after all of that, you decide to move commercially, remember one simple rule.
Every concession should buy another concession.
Lower fee? Reduced scope.
Faster delivery? Longer commitment.
Negotiation is an exchange, not a donation.
Try this: The next time someone tells you you’re too expensive, don’t ask how much cheaper you need to be. Ask them why they still want to buy from you.
#3. Silence is a negotiating tactic.
Former FBI hostage negotiator Chris Voss tells a wonderful story about silence in his brilliant book Never Split the Difference.
Most people quote a fee…and then immediately start talking.
They explain it. They justify it. Sometimes they even negotiate against themselves before the client has responded.
The client isn’t disagreeing. They’re thinking.
The next time you present a proposal, make your recommendation, smile and stop talking.
Silence isn’t awkward. It’s often where the real negotiation begins.
The next person to speak usually gives away the most information.
Don’t let it be you.
Try this: After presenting your proposal or fee, silently count to five before saying another word. It’ll feel much longer to you than it does to the client.
Chat to Tina by voice, when you’re between meetings, on the commute to/from work, or heading into something you’d rather avoid.
Final thought
Negotiation isn’t about winning.
It’s about protecting your value, understanding theirs and having the confidence to hold your ground.
Because everything is negotiable…
…until it isn’t.
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