Most negotiations start with positions. A buyer says they need a lower price. A seller says they need better terms. Those statements matter, but they are often only the surface of the deal.
The more useful question is what is underneath the position. If you can understand the interest behind the demand, you usually get more ways to solve the problem.
A position is what they ask for
A position is the stated demand: 10% off, 90-day terms, free freight, exclusivity, a faster deadline, or a larger volume commitment. Positions are easy to hear because they sound concrete.
The trap is treating the first position as the whole negotiation. If the buyer says, “We need 10% off,” it is tempting to either accept, reject, or counter with 3%. That can turn the negotiation into a tug-of-war over one variable.
An interest is why they ask
The interest is the business reason underneath the position. Maybe the buyer needs margin relief. Maybe they are trying to hit a budget number. Maybe they have inventory risk, cash-flow pressure, internal approval constraints, or a competitor creating a benchmark.
Those are different problems. A price reduction might solve one of them, but it might not be the cleanest trade. Faster payment, cleaner forecasts, a different pack configuration, a promotional plan, a rebate structure, or operational simplification may create value without giving away the same economics.
Ask questions before trading value
When you hear a position, slow the conversation down. Try questions like: “Help me understand what is driving that request.” “What problem are you trying to solve with that structure?” “If we cannot get all the way there on price, what else would help you accomplish the same goal?”
Those questions do not guarantee a better deal. They do, however, give you a better map. Once you know the interest, you can trade around value instead of reacting to the demand.
Practical takeaway: treat the first demand as a clue, not the full deal. Find the interest before you price the concession.
Want the framework behind this? Download the free 5 Laws of Negotiation ebook → 5laws.negotiationsacademy.com
