Negotiation Playbook

Version: 1.0 | Last Updated: Nov 2025

---

Negotiation Philosophy

Core Principle: Negotiate on value, not price.

Goals:

• Close deals at fair value
• Maintain healthy margins
• Build long-term customer relationships
• Set precedent for renewals/expansions

---

Discount Authority Matrix

Discount %	Authority Required	Approval Time
0-10%	Account Executive	Immediate
11-20%	Sales Manager	24 hours
21-30%	VP Sales	48 hours
31%+	CEO	72 hours + justification

Rule: Never discount more than 30%. Walk away if needed.

---

When to Discount (and When Not To)

✅ Acceptable Reasons to Discount

1. Multi-year commitment - 15-20% for 2-3 year deals
2. Large deal size - Volume discounts (500+ users)
3. Strategic account - Logo value, reference customer, case study
4. Competitive pressure - Only if competitive AND qualified
5. End of quarter - To hit team goals (manager approval)

❌ Never Discount For

1. "It's our policy" - Not your problem
2. "We're a nonprofit/startup" - Everyone has budgets
3. First ask - Make them work for it
4. To speed up decision - Creates bad precedent
5. Unqualified buyer - If they can't afford it, disqualify

---

Common Negotiation Tactics (and Counters)

Tactic 1: "We need a discount"

Counter: "I understand you want the best value. Help me understand—what's driving that request? Is it budget constraints, competitive pricing, or something else?"

Then:

• If budget: Offer smaller scope, annual vs. monthly payment
• If competitive: Show differentiation, offer POC
• If testing you: Hold firm, reinforce value

---

Tactic 2: "Your competitor is cheaper"

Counter: "Which competitor? Let me make sure we're comparing apples to apples."

Then:

• Show feature comparison matrix
• Calculate total cost of ownership (competitor + missing features)
• Emphasize value vs. price

Example: "Bonusly is $3/user/month plus $25-50/user/year in rewards. Total: $5-9/user/month. We're $10-15/user/month but include training, objectives, chat, and AI—no separate tools needed."

---

Tactic 3: "Can you throw in [EXTRA SERVICE]?"

Options:

Option 1: Add-on Pricing "We can absolutely include [SERVICE]. The investment for that is $[X]. Does that work?"

Option 2: Trade "If we include [SERVICE], what can you give us in return? Annual prepay? 2-year commitment? Reference/case study?"

Option 3: Future Commitment "Let's start with the core package. Once you see results in 90 days, we can add [SERVICE] then."

---

Tactic 4: "We need more time to evaluate"

Counter: "Of course—thoughtful decisions take time. Help me understand: what else do you need to see to make a confident decision?"

Uncover:

• Missing information? Provide it.
• Need approval? Schedule call with decision maker.
• Stalling? Create urgency.

Urgency Plays:

• "Pricing increases Q[X]"
• "Implementation slots filling up"
• "Promotion ends [DATE]"

---

Tactic 5: "Let's start with a free pilot"

Response: "We offer pilots, but they're structured POCs with clear success criteria—not open-ended free trials. Here's why..."

Paid POC Benefits:

• Creates commitment and accountability
• Ensures stakeholder engagement
• Validates value before full deployment
• Credits toward annual contract

Offer: "$[X] for a 60-day POC with [XX] users. If you hit success criteria, that credits toward your annual contract."

---

Tactic 6: "Our budget is only $[X]"

Response: "I appreciate you sharing that. Let me ask: is that a hard cap, or is there flexibility if we can show ROI that justifies a higher investment?"

If hard cap:

• Reduce scope (fewer users, fewer features)
• Annual prepay vs. monthly
• Multi-year commitment for discount

If flexible:

• Show ROI calculator demonstrating value > cost
• Compare cost of NOT solving the problem
• Offer payment terms

---

Value-Add Concessions (Non-Discount Alternatives)

Instead of discounting, offer value-adds:

1. Extended pilot - 30 days → 60 days POC
2. Additional training - Extra admin training sessions
3. Priority support - Upgrade to priority tier (first 90 days)
4. Custom integration - One integration included
5. Executive briefing - Quarterly exec business reviews
6. Early access - Beta features before general release
7. Dedicated CSM - More hands-on customer success support
8. Payment terms - Net 60 vs. Net 30

Rule: Only offer value-adds that don't reduce margin significantly.

---

Mutual Concession Framework

Never give without getting.

Examples:

You give: 15% discountYou get: 2-year commitment + annual prepay + reference/case study

You give: Priority support included You get: Annual contract + public logo usage + testimonial

You give: Extended POC (60 days vs. 30) You get: Commitment to decision by end of POC + executive sponsor engagement

---

Negotiation Scripts

Script 1: Holding Price

Prospect: "Can you do 20% off?"

You: "I understand you're looking for the best value. Our pricing reflects the comprehensive platform you're getting—9 features that would cost 3-4 vendors to replicate. What I CAN do is show you the ROI calculator so you can see how PulsePlus pays for itself in [X] months through reduced turnover alone. Fair?"

---

Script 2: Multi-Year Discount

Prospect: "Can you discount for multi-year?"

You: "Absolutely. For a 2-year commitment with annual prepay, I can offer 15% off. For 3 years, 20% off. Which works better for your planning cycle?"

---

Script 3: Volume Discount

Prospect: "What if we add more users?"

You: "Great question. Our volume pricing works like this:

• 100-500 users: $15/user/month
• 500-1000 users: $12/user/month
• 1000+ users: $10/user/month

Where do you expect to land after full rollout?"

---

Script 4: Competitive Pricing

Prospect: "[COMPETITOR] is cheaper."

You: "Let's make sure we're comparing accurately. [COMPETITOR] does [ONE THING] for $X. PulsePlus includes [LIST 5 THINGS]. To match our capabilities with point solutions, you'd pay:

• Recognition platform: $5/user
• Training platform: $10/user
• Communication: $5/user
• Total: $20+/user vs. our $15/user.

Plus, you have one vendor, one integration, one contract. See the value?"

---

Script 5: Payment Terms

Prospect: "We can't pay annually upfront."

You: "No problem. We offer:

• Monthly payments at $[X]/month
• Quarterly payments at $[X]/quarter (5% savings)
• Annual prepay at $[X]/year (15% savings)

Which works for your finance team?"

---

Red Lines (Non-Negotiables)

These are deal-breakers. Walk away if they insist:

1. Unlimited users for flat fee - Kills our business model
2. On-premise deployment - Not supported
3. Source code escrow - Proprietary IP
4. Unlimited support - Resource drain
5. Custom pricing below cost - Unprofitable
6. No data retention after cancellation - Security/legal risk
7. Indemnification beyond standard - Legal liability
8. Integration ownership - We control our integrations

---

Closing Techniques

1. Assumptive Close

"So we're looking at [PLAN] for [USERS] with [START DATE]. I'll send the contract over today for signature. When can you get that back to me?"

---

2. Summary Close

"Let me recap what we've agreed on:

• [X] users on [PLAN]
• Implementation starts [DATE]
• [SPECIAL TERM 1]
• Total investment: $[X]/year

If I get this into a contract by EOD, can we move forward?"

---

3. Alternative Choice Close

"Do you prefer to start with the 30-day POC or go straight to annual deployment?"

---

4. Urgency Close

"I can hold this pricing through [DATE], but after that it increases 10% for new customers. Can we finalize by then?"

---

Negotiation Killers (Avoid These)

❌ Discounting too early - Train buyers to always ask ❌ Discounting without concession - Leaves money on table ❌ Apologizing for price - Undermines value ❌ Matching competitor blindly - Race to bottom ❌ Going silent - Prospect assumes you're out ❌ Taking it personally - Stay professional ❌ Lying about authority - Destroys trust

---

Post-Negotiation Actions

If Deal Closes:

1. Send contract within 24 hours
2. Schedule kickoff call
3. Introduce customer success manager
4. Document special terms in CRM
5. Thank the champion

If Deal Stalls:

1. Document final offer in writing
2. Set expiration date
3. Schedule follow-up call
4. Continue adding value (share content, insights)
5. Don't chase—maintain posture

If Deal Dies:

1. Understand why (record in CRM)
2. Ask for feedback
3. Stay in touch (quarterly check-ins)
4. Win/loss debrief internally
5. Move on to next opportunity

---

Negotiation Prep Checklist

Before Every Negotiation:

• [ ] Know their business and pain points
• [ ] Understand decision-making process
• [ ] Research competitive alternatives
• [ ] Calculate their ROI
• [ ] Know your walk-away point
• [ ] Have approval for discount (if needed)
• [ ] Prepare value-add alternatives
• [ ] Set clear next steps

---

Document Owner: Sales Leadership Review Cadence: Quarterly based on win/loss analysis