Negotiation is mostly preparation. The person who knows their own costs, their alternatives and the point at which the deal stops being worth doing will out-negotiate a more confident person who does not, almost every time. Small business owners tend to lose negotiations before they start by not establishing what they can actually afford to accept.
Four things do most of the work.
Know your walk-away before the conversation
Establish the point at which the deal is worse than no deal, based on your real cost of delivery including unpaid time. Then hold it.
The alternative is discovering mid-conversation that you have agreed to something unprofitable, which is how small suppliers end up busy and losing money. A deal declined on price is cheaper than one delivered at a loss.
Negotiate everything, not just price
Payment terms, deposit, delivery schedule, volume commitments, exclusivity, who carries transport, and what happens on late payment are all negotiable and often matter more than the headline rate.
Conceding on price in exchange for a deposit or shorter payment terms can leave you better off in cash terms than holding the price and waiting ninety days.
Ask, then stop talking
Most owners undermine themselves by explaining their price, then adding a justification, then offering a discount nobody asked for. State the position and let the silence sit.
Asking why the other side needs what they are asking for usually reveals a constraint you can solve more cheaply than by discounting.
The written agreement is the real negotiation
Whatever was agreed verbally, the document governs. Read what happens on cancellation, late payment, quality disputes and termination, because those clauses decide what the deal is worth when something goes wrong.
For anything significant, have it reviewed. And ensure you are contracting as the registered company rather than personally, with details matching your registration at the Companies and Intellectual Property Commission. Free business support including contract guidance is available through the Small Enterprise Development and Finance Agency.
Frequently asked questions
What is the most important preparation?
Knowing your walk-away point, based on the real cost of delivery including unpaid time, and holding it.
What besides price should I negotiate?
Payment terms, deposits, delivery schedule, volume commitments, transport responsibility and late payment consequences.
Is conceding on price ever sensible?
Yes, in exchange for a deposit or shorter payment terms, which can leave you better off in cash than holding the price.
What do owners most often get wrong?
Over-explaining their price and offering discounts nobody asked for. State the position and stop talking.
Why does the written agreement matter so much?
Because it governs regardless of what was agreed verbally, particularly on cancellation, late payment and disputes.
Further reading
Originally published in August 2018. Updated September 2026 into practical negotiation guidance for small business owners.
