Episode #450: Stuart Foster

What’s the real difference between negotiation strategy and tactics, and why does it matter so much in high-stakes deals? In this episode of Sales Reinvented, we’re joined by Stuart Foster, an international sales performance coach, who answers this question and shares his expertise on navigating complex negotiations. 

Stuart reveals how understanding the balance between strategy and tactics can be the key to closing deals, building long-term relationships, and ensuring mutual success. Whether you’re negotiating with a tough buyer or trying to secure a lasting partnership, Stuart’s actionable advice will equip you with the tools you need to master the art of negotiation.

Outline of This Episode

• (0:51) What is the difference between negotiation strategy and tactics?
• (1:26) How should strategy and tactics complement each other in a deal?
• (2:22) Stuart’s go-to negotiation strategy for high-stakes deals
• (5:28) The role of planning in negotiation strategy and tactics
• (6:55) Common negotiation strategies in complex sales
• (8:55) How to handle aggressive negotiation tactics from buyers
• (10:30) Stuart’s top three negotiation strategy dos and don’ts
• (13:38) Real-world example of applying strategy and tactics in a high-stakes deal

Three Effective Negotiation Tactics

Stuart shares three negotiation tactics that he’s found particularly effective when trying to gain leverage in high-stakes deals. 

1. The first tactic is to rank negotiable terms—both for yourself and the other party. By understanding the most important terms to the other party, you can make concessions on items that are of low value to you but of high value to them, creating goodwill and making it easier to focus on more critical negotiables. 
2. The second tactic is building in trading negotiations. Stuart advises that you should always have items you can trade away that are of little importance to you but can be of significant value to the other party. This not only helps you secure favorable terms but also ensures that the other party feels like they’ve won, which fosters a sense of collaboration. 
3. Finally, having an alternative is key. If you can’t reach your primary goal, having a strong backup plan allows you to still walk away from the negotiation with a favorable outcome. By ensuring that you always have a viable alternative, you give yourself the confidence to stand firm without feeling desperate.

The Role of Planning in Negotiation

Stuart places heavy emphasis on planning as the most crucial element of any successful negotiation. As he explains, your strategy and tactics cannot be executed effectively without thorough preparation. This involves doing in-depth research, not just about the other party’s interests and positions, but also understanding your own. 

Planning includes understanding which negotiables are most important to you, the other party’s priorities, and how to use that information to your advantage. One of the key elements of planning that Stuart highlights is knowing when to walk away from the negotiation. You must have clear boundaries and understand the point at which continuing the conversation no longer serves your interests. 

Without a solid plan, you risk making hasty decisions that could undermine the negotiation’s long-term benefits. Planning also helps reduce uncertainty and ensures you’re prepared to deal with any surprises that may arise during the process.

Managing Aggressive Buyers and Negotiation Tactics

Handling aggressive buyers is a reality that every salesperson faces at some point, and Stuart shares valuable advice on how to manage these tough situations. When you’re dealing with a buyer who uses aggressive tactics—such as last-minute demands or take-it-or-leave-it ultimatums—Stuart stresses the importance of staying calm and not getting rattled. 

One of the most common aggressive tactics is the “nibble,” where the buyer tries to add a small request or demand right at the last minute. Stuart’s approach to handling this is to calmly acknowledge the progress made and suggest that if the buyer wants to revisit any of the terms, you’re open to renegotiating the entire deal. This allows you to reassert control over the conversation and prevent any last-minute demands from derailing the agreement. 

Additionally, when faced with a “take it or leave it” approach, Stuart recommends politely declining the demand and then redirecting the conversation to highlight the value you’re bringing to the table. By emphasizing the benefits and offering alternatives, you can turn these aggressive tactics into opportunities for collaboration.

Focusing on the Total Cost of Ownership

In a real-world example, Stuart shares a high-stakes negotiation involving a long-term contract for the supply of products and services to a large utility company. The buyer, new to the industry, had a background in commodities, while the lead engineer, responsible for setting standards, was also part of the buying committee. 

Stuart’s strategy focused on positioning his company as a subject matter expert and emphasizing the total cost of ownership rather than just the initial purchase price. By highlighting factors like reliability, service, and energy usage, Stuart was able to shift the conversation from a focus on price to one on long-term value. 

Additionally, by understanding the buyer’s interests—such as the need for quick response times to site—Stuart offered innovative solutions like training on-site engineers and providing spare parts at key locations. 

This approach not only met the buyer’s immediate needs but also addressed their long-term interests, helping Stuart secure the deal while fostering a strong, collaborative relationship. This example highlights the power of combining negotiation strategy with tactical flexibility to create mutually beneficial outcomes in complex, high-stakes negotiations.

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Learn More About Stuart Foster

What was a pivotal moment in your career that shaped your approach to negotiation, and how did it influence your strategy and tactics?

A pivotal moment for me happened early on in my sales career when I had some sales training that focussed on the value we bring to our customers. It changed not only my approach to negotiations but also my whole view of selling. I found that by genuinely understanding my client’s needs and pain points, I could offer a solution that truly added value. I changed my approach from a transactional mindset to a partnership-focused strategy, meaning that I went from simply selling a product to becoming a trusted business advisor. I took the time to understand each stakeholder’s unique concerns and priorities and address the specific needs of each influencer and decision-maker. All of this led to more effective and targeted negotiations, built stronger, long-term relationships, and strategic partnerships.

Can you share a specific negotiation tactic that has consistently helped you close deals more effectively? Please provide an example where it worked.

A tactic that I find to be very effective in negotiations is having a collaborative approach to problem solving. Buy deeply understanding “What is the problem to be solved?” and creating a ‘joint workshop’ environment to collaboratively solve it, we can explore different solutions that allow for value creation for both parties. On one occasion when working with a large food & beverage manufacturer they wanted a reduction in lead times for spare parts for their production lines. We set up a workshop with their engineering department, where together we were able to co-develop a tailored solution by standardising on key equipment. Not only did this reduce lead times, it also reduced their stores stockholding, and reduced downtime. I find that by using this method there is mutual investment in the outcome. 

What is the most challenging negotiation you’ve ever faced, and what strategy or tactic helped you turn it into a win?

One of the most challenging negotiations that I’ve faced was with a xxxx OEM, when working with them on their automation platform. I was trying to convince them to move away from their current supplier who they had been with for many years. By working with their stakeholders to understand what the problem was I found that there was a significant fear about the cost to change, how working with a new platform might impact their programmers and engineers, and fears about adopting an untested (by them) platform. The approach that I took with the different stakeholders was to value promotion, risk mitigation, and proof of concept. There were clear financial and logistical benefits to our solution which we promoted to the buyer and senior management. With the design and engineering team we provided training on our platform, along with a pilot program and phased introduction to demonstrate the simplicity and superior performance of our platform. We agreed a series of KPI’s and were able to demonstrate measurable improvements during the trial period. By doing this we were able to alleviate the client’s concerns about switching automation platforms and build confidence in the new solution.

What are your top three must-have tools, frameworks, or resources that sales professionals should use to improve their negotiation skills?

The first would be a good CRM system. This is critical for when you need to map key decision-makers and influencers, record and analyse data, track interactions and manage complex sales cycles. All of this will help when building your strategy and setting out your tactics for negotiations.

Have a framework that let’s you deeply understand the clients needs. Consultative Selling, SPIN (Situation, Problem, Implication, Need-Payoff), or value based selling can help you to gather the information you need and understand where your value exists when you come to the negotiation.

Knowledge is power. If you don’t already have it then invest in some industry specific market research. This can offer insights into market trends, competitive analysis, and buyer behaviour, which will all help when you are building your strategy.

With buyer behaviours evolving and AI playing a larger role in sales, how do you see negotiation strategies and tactics changing in the future? What should sales professionals do to stay ahead?

The role of AI in sales is only set to increase. At it’s heart this means data driven insights and predictive analytics. I think a big area that AI will impact is in understanding emotional buying behaviours. Psychographics and emotional engineering are becoming more prevalent in the business to business world and this is influencing not only the salespersons strategies but also the buyer’s. Professional buyers are using AI to develop and build their negotiation strategies therefore salespeople need to be doing the same. They need to embrace AI tools to gain deeper insights into client needs, personalize engagement, and enhance decision-making. Staying ahead involves continuously learning about these new technologies and integrating AI-driven tools, whilst retaining empathy and creativity so we can continue to focus on building authentic relationships and trust.

What’s are some simple but powerful negotiation tactics that most salespeople overlook?

Silence: Many salespeople underestimate the power of silence during negotiations. Pausing after making an offer, or receiving a counteroffer, can prompt the client to reveal more information or make concessions.

Anchoring: This is an incredibly powerful psychological technique. Setting the initial terms of negotiation high to create an anchor can shift the perceived value and lead to a more favourable outcome.

Summarizing and Confirming: Regularly summarizing key points and confirming agreement during discussions helps to ensure clarity, prevents misunderstandings, and keeps both parties aligned. It can also help to demonstrate momentum during negotiations.