Preparation

The negotiation is won or lost before you walk into the room.

The Preparation Framework

1. Know Your Numbers

Before any negotiation, define:

Never enter a negotiation without these defined.

2. Research Their Side

Know as much as possible about:

Their Constraints

• Budget limitations
• Timeline pressures
• Authority levels (can they actually decide?)
• Policies they must follow

Their Interests

• What do they really need?
• What are their pain points?
• What would make them look good?
• What are they afraid of?

Their Alternatives

• What happens if they don't reach agreement with you?
• Who else could they work with?
• How urgently do they need this deal?

3. Research Market Data

Arm yourself with objective criteria:

• Salary: Glassdoor, levels.fyi, Payscale, industry surveys
• Real estate: Comparable sales, Zillow, market reports
• Contracts: Industry standard terms, benchmark rates
• Products: Competitor pricing, cost breakdowns

Objective criteria shifts the conversation from "I want" to "the market says."

The Preparation Checklist

□ What is my target outcome?
□ What is my opening position (anchor)?
□ What is my walkaway point?
□ What is my BATNA? How can I strengthen it?
□ What are their likely interests?
□ What constraints are they under?
□ What is their BATNA?
□ What objective criteria support my position?
□ What questions should I ask?
□ What concessions can I offer that cost me little but value them much?
□ What might they ask for? How will I respond?
□ Have I practiced out loud?

Understanding Their Constraints

Everyone operates under constraints. Finding them is gold.

Time Pressure

• End of quarter/year (budget cycles)
• Vacancy costs (hiring)
• Project deadlines
• Personal deadlines (they're leaving, promotion pending)

If they have time pressure, slow down. If you have it, hide it.

Budget Reality

• Fiscal year resets
• Pre-approved ranges
• Multiple budget buckets (salary vs signing bonus vs equipment)
• "Use it or lose it" budgets

Ask about budget structure, not just total budget.

Authority Limits

• Who actually makes the final decision?
• What requires approval above them?
• What can they agree to on the spot?

"What would need to happen for you to say yes today?"

Organizational Constraints

• Internal equity (other employees' compensation)
• Policy requirements
• Precedent concerns ("If we do this for you...")
• Legal/compliance limitations

Building Your Information Arsenal

Questions to Ask Before Negotiating

For salary:

• "What's the salary range for this position?"
• "How is compensation structured here?"
• "What's the typical progression for this role?"

For business deals:

• "What's your timeline for making a decision?"
• "Who else is involved in this decision?"
• "What would make this a great outcome for you?"

For purchases:

• "Is this your best price?"
• "What flexibility do you have?"
• "What would I need to do to get a better rate?"

Information to Gather

Preparing Your Concessions

Concessions should be planned, not improvised.

The Concession Strategy

1. List everything you could give up

   • Price reductions
   • Timeline changes
   • Scope adjustments
   • Terms modifications

2. Rank by cost to you

   • High cost: Things that really hurt
   • Medium cost: Things that matter but are acceptable
   • Low cost: Things that seem valuable but cost you little

3. Estimate value to them

   • What do they care most about?
   • What seems valuable but costs them little?

4. Match low-cost-to-you with high-value-to-them

Example: Job Negotiation Concessions

Scripting Key Moments

Don't improvise critical moments. Script them.

Your Opening

Write out exactly how you'll state your initial position:

"Based on my research and the scope of this role, I'm looking
for compensation in the range of $130,000 to $140,000."

Responding to Their Offer

"I appreciate the offer. I was hoping for something closer to [X]
based on [objective criteria]. Is there flexibility there?"

When Asked for Your Number First

"I'd like to understand the full scope of the role before
discussing numbers. Can you share the range you've budgeted?"

Handling Lowball Offers

"That's quite a bit below market rate. Help me understand
how you arrived at that number?"

Practice Out Loud

Reading preparation is not enough. You must:

1. Say your key phrases out loud - They'll sound different
2. Practice with a friend - Role-play the negotiation
3. Anticipate objections - Prepare responses
4. Time yourself - Pauses should feel natural

The Night Before

• Review your numbers one more time
• Get good sleep (fatigue kills negotiations)
• Prepare your environment (quiet room, good connection if virtual)
• Have your research accessible but not visible
• Dress appropriately (it affects confidence)

Mental Preparation

Adopt the Right Frame

• You're solving a problem together, not fighting
• They want this deal too, or they wouldn't be talking
• Asking for what you want is professional, not rude
• Their initial offer is a starting point, not the truth

Confidence Anchors

Before the negotiation, remind yourself:

• Your BATNA (you have options)
• Your qualifications/value
• Times you've succeeded before
• The worst case (they say no, you're no worse off)

Kill Desperation

If you feel desperate:

• Improve your BATNA before negotiating
• Delay the negotiation if possible
• Remind yourself this isn't the only opportunity
• They can smell desperation. It weakens you