This document discusses the four key variables in any negotiation: timing, contract length, deal size, and payment terms. It explains how changing one variable affects the others and provides examples of how understanding these relationships can give buyers and sellers leverage in negotiations. Specifically, it outlines strategies for using one variable, such as being willing to sign immediately, to negotiate better terms on the other three variables. The overall message is that recognizing the interplay between these four negotiation levers allows people to adjust them strategically for a fair and advantageous outcome.

1. Negotiate like a Pro:
The Four Levers of a Sale
Timing
Contract Length
Deal Size
Payment Terms

2. Negotiating doesn't have to be difficult.

3. If we can understand the variables that go into
most agreements, and how changing one
of the four negotiation variables affects the
others, we can take better control of our deals.

4. What four negotiation variables???

5. Timing
Contract Length
Deal Size
Payment Terms
These four:

6. 1. What it means for the BUYER
2. What it means for the SELLER
Lets expand on each and talk about…

7. What it Means for the BUYER
If you know that the seller wants your
John Hancock yesterday, and you're
willing to give it to them today, you now
have a lot of leverage when it comes to
our three other variables.
Timing

8. What it Means for the BUYER
You can offer your immediate
agreement to a seller if he or she will
allow for a shorter contract length, a
smaller total deal size, or more
advantageous payment terms.
Timing

9. What it Means for the SELLER
If your buyer isn't interested in making a
purchase soon, you need to get them to
be.
Timing

10. What it Means for the SELLER
To do so, you can offer a shorter contract
length, a smaller total deal size, or more
advantageous payment terms, if and
only if the buyer will ink the deal in the
very near future.
Timing

11. What it Means for the BUYER
If you know that the other end of the
table wants you around for awhile, and
you're willing to make that
commitment, you now have a lot of
leverage when it comes to Deal Size and
Payment Terms.
Contract Length

12. What it Means for the BUYER
You can offer to commit to a longer
contract at a reduced total price or for
more advantageous payment terms.
Contract Length

13. What it Means for the SELLER
If you're selling, and your buyer doesn't
want to commit for as long as you'd like
them to, you now have some bargaining
power over payment terms and deal size.
Contract Length

14. What it Means for the SELLER
For Deal Size, you can say, “Yeah, you
can come aboard for half of our desired
duration, but you will have to pay 20-
percent more each month to make it
worth our while."
Contract Length

15. What it Means for the SELLER
The same goes for Payment Terms:
“Look, we can let you pay monthly if you
sign on for the whole year, but if you're
only willing to commit to six months, we
will need payment up front."
Contract Length

16. Deal Size
What it Means for the BUYER
Buyers can use Deal Size to negotiate for
better Payment Terms or a more
agreeable Contract Length. If you are
forking over a ton of money, you can
likely get out of annualized payment
terms and pay monthly instead.

17. What it Means for the SELLER
Sellers can use Deal Size to create
urgency, which affects Timing, by
offering lower prices during given
periods and not others.
Deal Size

18. What it Means for the SELLER
So, if your buyer wants a reduced price,
give them a limited window for securing
that price so that you can get a better
result with Timing.
Deal Size

19. Payment Terms
What it Means for the BUYER
If you're willing to pay an entire contract
up front, you have plenty of
opportunities to lower your liabilities
when it comes to Deal Size, Contract
Length, and Timing.

20. What it Means for the BUYER
When it comes to Contract Length, you
can ask for an extra month or two for
free. In the same vein, regarding Deal
Size, you can ask for a discount on the
total price.
Payment Terms

21. What it Means for the SELLER
You want everything up front, but your
buyer isn't interested. So make them
interested. Tell them you'll cut their
Monthly Cost or Contract Length if they
pay right away.
Payment Terms

22. Anytime somebody is negotiating with you, there
will be levers to pull. Ramping up one lever might
mean reducing others, or vice versa.

23. The important thing is that you recognize the
relationships between the four levers of sales so
you can adjust them fairly and advantageously.

24. Want to further develop your selling skills?
Download FREE
Communication
Skills Training