Preparation is most of it

Negotiations are usually decided before anyone speaks, by who prepared.

Know your walkaway, meaning the point below which you would rather have no deal. Work it out in advance, in numbers, when you are calm. Without it you will accept something poor in the room, because the pressure to close is real and it is strongest at the end.

Know your alternative. What happens if this does not work? Another client, another supplier, doing it yourself, waiting. The strength of your alternative is the real source of your negotiating power, and improving it before the conversation is more useful than any technique. Somebody with three other options negotiates differently from somebody with none, and it shows.

Work out their side. What do they need, what are they measured on, what is their alternative, and what is their deadline? Their deadline is often the most useful thing you can know.

Separate your position from your interest. Your position is what you are asking for. Your interest is why. They asked for a twenty percent discount; their interest might be a budget limit this quarter, which a payment schedule solves without touching the price.

Prepare several variables, not one. Price, timeline, scope, payment terms, support period, exclusivity. A negotiation with one variable is a fight over a single number. With five, there are trades available that make both sides better off.

Write down your target, your acceptable range and your walkaway before you enter the room.