Nego Part II: From Plans to Playbook

In Part I, we covered the groundwork of negotiation: building a solid internal plan, selling your vision in the business review, and setting the stage for commercial alignment. The better you sell upfront, the easier the negotiation will be later on. In this second part, we move into the actual preparation of your negotiation meetings. This is where deals are made or lost.

We will walk through:

• What you want to change in the current collaboration
• The right financial framework to hit your targets
• Scenario planning and action design

And one reminder upfront: selling and negotiating are not the same thing. Once you walk into your first negotiation meeting, the selling should already be done. Continuing to sell during negotiation makes you look uncertain. It weakens your position. Sell early. Negotiate with intent.

Learn from past negotiations

Negotiation prep should always start with a look in the rear-view mirror. People are creatures of habit. They often repeat behaviour unless context dramatically changes. You need proper documentation to do this well — not vague notes, but real summaries of how negotiations unfolded in the past years.

Ideally, you go back three years to spot patterns. Ask yourself:

• How many meetings did it take to close a deal?
• When did the breakthrough happen?
• What were the key demands?
• What threats were made?
• What counteroffers came through, and when?
• How much did you invest to land the deal?

This retrospective helps you anticipate behaviour and build your offer roadmap accordingly. But be smart: not everything repeats. Your plan may be stronger or weaker. People on the other side may have changed. Competitive dynamics may have shifted. Past patterns should inform you, not dictate you.

Draft your negotiation variables

Negotiations look different by retailer. Steve Gates' "Negotiation Clockface" (The Negotiation Book, 2015) captures the contrast perfectly.

On the right side: competitive negotiations, where value is fixed and both parties fight over a split. Power dominates. Brand strength matters, alternatives matter, the conversation concentrates on price, and trust is low. Traders and hard discounters often live here.

On the left side, you aim to expand the pie. There is more complexity because you bring multiple variables into play — there is also more interdependence, and both parties need each other in the long term.

Start with a full review of your current agreements: both formal (contractual) and informal. Break them into three categories:

• Commercial: listing fees, promotional funding, retail media, bonuses, assortment clauses
• Operational: delivery terms, lead times, returns, EDI compliance
• Strategic: category captaincy, co-innovation, data sharing, sustainability commitments

For each variable, define your Opening Position (ambitious but defensible), your Target (what you actually want to land), and your Walk-Away (the line you won't cross without escalation). This gives you a structured trading range, not a gut-feel dance.

Build your financial framework

The financial framework is the backbone of your negotiation. It translates your commercial ambitions into numbers and tests whether deals are financially viable before you sit down at the table.

Build a trading model that simulates the P&L impact of different deal scenarios. Start with your current baseline, then layer in your asks:

• Price increase: what's the list price change, and how does it flow through to net net?
• Promotional investment: what level of support are you offering, and what ROI do you expect?
• Volume assumptions: what growth do you need from this customer to hit your targets?

The model should answer one question: if we land this deal, are we better or worse off than last year? And by how much?

The output helps you decide which battles to fight — and which to concede. Not all variables have equal financial weight. Know which ones move your P&L the most.

Scenario planning

No negotiation unfolds exactly as planned. Scenario planning prepares you for the curveballs.

Build at least three scenarios:

1. Best case: everything lands as planned — price, volume, investment levels all move in your direction
2. Base case: the most likely outcome, with some concessions on both sides
3. Worst case: the retailer pushes back hard — what do you give up, in what order, and at what cost?

For each scenario, define your action: what do you do if they reject your opening offer? What do you trade first? What do you protect at all costs?

This pre-wiring means your team reacts with logic, not emotion, when things get tense.

The day of negotiation

Walk in with a clear opening statement. Set the tone. Acknowledge the relationship. Then present your proposal — confidently and briefly. Don't over-explain. Don't justify before they've even pushed back.

Listen more than you talk. The other side will reveal their priorities if you give them space.

When they counter, don't respond immediately. Take notes. Ask clarifying questions. Understand what's behind the demand — is it a real constraint or a negotiating tactic?

The best negotiators are not the loudest. They are the most prepared.