Vocabulary
8 key words for this lesson
CONCESSION
Something given up in order to move a negotiation forward. The rule in professional negotiation is that concessions must be traded, never given away — a concession without a return sets a precedent and signals that the original position was not serious.
Marcus asked for a 20% discount. Riley was willing to make a concession on price — but only if Marcus was willing to move on the contract length. A concession for nothing is not a negotiation; it is a reduction.
TRADE-OFF
An exchange in which gaining something on one side requires giving up something on another. Trade-offs give both parties a way to move without losing face — because each side gets something, and each side gives something.
Riley offered a trade-off: a lower unit price in exchange for a twelve-month commitment instead of six. Marcus got the number he needed for his budget. Riley got the contract length that made the reduction financially sensible.
ANCHOR
To set the first number or term in a negotiation, establishing the reference point that all later discussion is measured against. Whoever anchors first controls the frame — which is why experienced negotiators anchor high before the other side can anchor first.
Before Marcus could name a number, Riley anchored with the full annual contract value. When Marcus pushed back, the conversation was about how far to move from her number — not how far to move from his.
PRECEDENT
An earlier decision or action that becomes the standard or expectation for future situations. In price negotiation, giving a concession without conditions sets a precedent — the next time this prospect, or any prospect, opens a negotiation, they expect the same terms as a starting point.
Riley was careful not to set a precedent with Marcus. A 20% discount with no conditions would mean every renewal conversation starting from that lower number. She structured the concession with conditions precisely to avoid this.
SCOPE
The range of what is included in an agreement — how many users, how many features, how much support, how long the term. Adjusting scope is often a more sustainable negotiation move than adjusting price, because it changes what is being bought rather than what it costs.
When Marcus pushed on price, Riley shifted the conversation to scope. Could they start with a smaller team and expand in Q2? That gave Marcus a lower entry cost while preserving the unit price — and created a natural expansion conversation for later.
THRESHOLD
The point beyond which a party cannot or will not go — a floor on price, a ceiling on concessions, or a boundary on terms. Understanding your own threshold before entering a negotiation is essential. Understanding the other side's threshold is what makes a deal possible.
Riley knew her threshold: below a certain unit price, the account was not profitable. She did not share that number, but she used it to structure every offer she made — nothing she proposed crossed her own floor, even when the conversation got uncomfortable.
RECIPROCAL
Given or done in return for something equivalent. A reciprocal concession is one made in response to a move from the other side — it keeps both parties invested and signals that the negotiation is a two-way process, not a series of demands.
Riley made a reciprocal concession: when Marcus agreed to a twelve-month commitment, she moved on implementation fees. The movement was in response to his movement — which made it feel earned rather than given, and kept both sides at the table.
TERMS
The specific conditions and details of an agreement — payment schedule, contract length, support level, renewal clauses, and so on. Separating price from terms is a key negotiation move: often what looks like a price disagreement is actually a disagreement about terms.
Marcus said the price was too high. Riley asked him to separate the price from the terms: if the payment were spread across the year rather than billed upfront, would the monthly figure feel more manageable? It was the same total — but the terms changed the conversation.
Phrases
6 phrases and their meanings
IF YOU CAN MOVE ON X, WE CAN MOVE ON Y
The structural language of conditional negotiation. Nothing is agreed until everything is agreed — this phrase makes every concession explicitly conditional on a move from the other side.
'If you can move to a twelve-month term, we can move on the unit price. I am not able to give you both — but I can give you one if you can give me the other.'
WHAT ARE YOU ABLE TO MOVE ON
A probe that tests the other side's flexibility without revealing your own floor. Forces the other party to identify where they have room before you show your hand.
'Before I respond to the pricing request, I want to understand the full picture. What are you able to move on from your side — contract length, payment terms, implementation timeline? That tells me where I have room to work.'
I CAN WORK WITH THAT — BUT ONLY IF
A conditional acceptance — signals that you are open to the other side's position, but makes your agreement explicitly dependent on a condition. Keeps flexibility visible without giving a free concession.
'I can work with a reduced entry price — but only if we structure the contract so that the rate steps back up at renewal unless the volume targets are hit. I need something to anchor the discount to.'
LET'S SEPARATE THE PRICE FROM THE TERMS
A reframe used when price negotiation is stuck. Moves the conversation to contract structure, payment schedule, scope, or other levers — often revealing that the real disagreement is about terms, not the total number.
'Let's separate the price from the terms for a moment. The annual figure is what it is — but if we talk about how it is structured, there may be more room than the headline number suggests. Monthly billing, phased implementation, a smaller initial scope?'
THAT'S AT THE EDGE OF WHAT I CAN DO
Signals a threshold without making it personal, confrontational, or absolute. Keeps the door open while communicating that you are close to the limit — which invites the other side to move rather than simply saying no.
'I want to find something that works for both of us — but what you are describing is at the edge of what I can do at this contract value. If we can bring in the volume commitment, I have a little more room. Without it, I am at the limit.'
WHAT WOULD MAKE THIS WORK FOR YOU
An open probe that invites the other side to define what they actually need, rather than defending a position. Often reveals that what the prospect is asking for is different from what they actually need — and that there are creative solutions neither side has considered.
'You've told me the price is a concern — I hear that. But before we talk numbers, help me understand: what would make this work for you? Is it the total cost, the cash flow timing, the risk of commitment, or something else? Because each of those has a different answer.'
Videos
Watch these terms used in context
Dialogue
Read the dialogue and hover the blue words for definitions
Marcus
RileyRiley, I want to make this work — but I need to be honest with you. The number you have given me is 20% above what my CFO has approved. I need to find a way to close that gap.
I appreciate you being direct. Before I respond to the number — what are you able to move on from your side? Contract length, payment structure, implementation timeline? I want to understand the full picture before I start moving on price.
We can commit to twelve months instead of six. And we could push the start date to February, which helps our cash flow. But the unit price still needs to come down.
Twelve months and a February start — that is meaningful movement. Let me show you what that unlocks. If you can commit to the twelve-month terms, I can move on the unit price. I cannot do both — but the twelve months gives me the threshold I need to justify a lower rate internally.
How much of a reduction are we talking?
Ten percent on the unit price, in exchange for twelve months and payment split across two invoices. That is at the edge of what I can do at this scope — I cannot get to 20% without changing what is in the contract.
Ten percent is not enough. My CFO anchored at 15 when she approved the budget. Can you get closer to that?
Let's anchor this differently. The 15% your CFO is working from — is that based on the annual total, or the monthly rate? Because there may be a way to get her to the monthly number she needs without me going below the rate I can sustain.
She is looking at the monthly cost per user. That is the number she approved in the budget.
Then let's separate the price from the terms for a moment. If I phase the implementation so that you start with 20 users in February and bring on the remaining 10 in May, your per-user cost for Q1 hits the number she budgeted — and you scale into the full cost once the product is embedded. Same annual total, different monthly picture.
That is actually interesting. Would there be a precedent set here — would I be locked into this phased structure at renewal?
No — renewal is priced on the full 30 users from day one at the standard rate. The phased structure is a concession on implementation, not on pricing. I want to be transparent about that so there are no surprises at renewal.
I can work with that — but only if the May onboarding is included in the contract at no additional cost. I do not want a separate services fee for the second phase.
That is a reciprocal move I can make — onboarding for the second cohort is included if the contract is signed before the end of the month. That gives me what I need on timing, and it gives you what you need on implementation cost. I think we have the shape of a deal here.
Exercises
Complete all three exercises to see your final score
Pitch Corner
Read the pitch — click or drag words from the bank to fill the gaps.
Counter-Offer Email
Marcus has emailed Riley asking for a 20% discount to match what his CFO approved. Riley needs to respond with a structured counter-offer — not a simple no, not a free reduction, but a conditional proposal that moves both sides forward
Dear Marcus, Thank you for being direct about the budget constraint — it is exactly the kind of clarity that helps me build a proposal worth taking to your CFO. I want to respond with a structured counter-offer rather than a straight reduction, because I think there is a way to get you to the number she approved without me setting a— — —that makes every future conversation start from a discounted baseline. Here is what I am proposing.On price: I can move to a 10% reduction on the unit rate if you can commit to a twelve-month— — —— payment in two invoices, start date in February, and the full user count active from month one. That is the— — —I need to justify the reduction internally. A shorter contract or a single invoice does not give me the same room.On monthly cost: I want to flag something your CFO may not have considered. If we phase the— — —— 20 users from February, the remaining 10 from May — your Q1 monthly spend lands at exactly the figure she approved in the budget, without changing the unit price at all.This is a— — —on implementation timing that I am prepared to make as part of this deal. The annual total does not change, and renewal is priced on the full 30-user licence at the standard rate from day one — I want to be transparent about that so there are no surprises.If you can get me sign-off by Friday, I will include onboarding for the second cohort at no additional cost — a— — —move for your commitment on timing. I think this gives your CFO the monthly number she needs and gives me the structure I need to make it sustainable. Would a thirty-minute call tomorrow work to confirm the details? Riley
Tip: Read the whole passage first to understand the context, then fill in the blanks.
Matching
Click a word, then click its correct definition.
Click a word on the left, then its definition on the right.
Words
Definitions
Fill in the Blank
Drag the correct words from the word bank to complete each sentence.
Sentence 1
Marcus asked for 20% off. Riley made a— — —— but structured it as a trade: a lower unit price in exchange for a twelve-month commitment. A reduction with nothing in return was not something she was willing to do.
Sentence 2
Riley offered a— — —: a lower per-unit price in exchange for a longer contract term. Marcus got the budget number he needed; Riley got the commitment length that made the reduction viable.
Sentence 3
Before Marcus could name a number, Riley— — —with the full annual contract value. When he pushed back, the conversation was about how far to move from her number — not from his.
Sentence 4
Riley was careful not to set a— — —with this deal. A 20% discount with no conditions would mean every future negotiation starting from that lower number as the baseline.
Sentence 5
When price felt stuck, Riley shifted the conversation to— — —. Could Marcus start with 20 users and expand in May? That gave him a lower monthly cost without changing the unit price.
Sentence 6
Riley knew her— — —: below a certain unit price, the account stopped being profitable. She did not share that number, but it shaped every offer she made in the negotiation.
Sentence 7
Riley made a— — —concession: when Marcus agreed to twelve months, she included onboarding for the second cohort at no cost. His movement unlocked her movement.
Sentence 8
Marcus's CFO was looking at the monthly cost per user, not the annual total. Riley suggested separating the price from the— — —— a phased start could get the monthly number to the approved budget without changing the annual rate.
Tip: Think about the meaning of each word and what makes sense in the sentence.
Multiple Choice
Choose the best answer for each question about the dialogue.
1.Why does Riley ask 'what are you able to move on from your side?' before responding to Marcus's discount request?
2.What is the risk of making a concession without attaching a condition to it?
3.When Riley says 'let's separate the price from the terms,' what is she doing?
4.Riley proposes phased implementation as a negotiation move. What makes this smarter than simply reducing the price?
5.Marcus asks whether the phased structure sets a precedent for renewal. What does this question reveal about Marcus — and how does Riley handle it?
6.What does 'anchoring' mean in a price negotiation — and why does Riley do it before Marcus can?
7.Riley says she will include onboarding for the second cohort 'if the contract is signed before the end of the month.' What type of move is this?
8.Why is 'I can work with that — but only if' more effective than simply agreeing to the prospect's request?
Deal Clinic
Read the conversation — judge each highlighted move: Good or Weak?
Evaluate each highlighted move — is it effective or not?
✓ 0 of 4 evaluatedContext
Marcus has just said: 'I need you to come down to 15% below your quoted price — my CFO has approved the budget at that level and I cannot go above it.' Watch how two salespeople respond.
Marcus
Riley, I want to move forward — but I need the price at 15% below your quote. My CFO has set that as the approved budget and I have no room to go above it.
Salesperson A
I understand that's a firm number for you. I can go to 12% — that's the most I'm authorised to discount without going back to my manager. If you can accept 12%, I think we can close this today.
Verdict
Salesperson A — Response to discount request
Salesperson B
I hear the constraint — and I want to find a way to make this work. Before I respond to the number, can I ask: what is the CFO looking at when she says the budget is set at 15% below? Is she looking at the annual total, the monthly per-user cost, or the total cost of the first year including implementation?
Verdict
Salesperson B — Response to discount request
Marcus
She's looking at the monthly per-user cost. That's the line in her budget. The annual total is less of an issue — it's the monthly number she's approved.
Salesperson A
Got it. Well, if I drop to 12% on the unit price, that should get close to the monthly number she has in mind. I can't quite get to 15% without sign-off, but 12% is real movement.
Verdict
Salesperson A — Follow-up move
Salesperson B
That is useful — because it means the unit price is not necessarily the only lever. If we phase the implementation so that you start with 20 users in February and bring on the remaining 10 in May, your monthly per-user cost in Q1 lands at the number your CFO has approved — without me touching the unit rate at all. Same annual total. Different monthly picture in Q1.
Marcus
That could work. But I would need the May onboarding included in the contract — I can't have a separate services line item showing up later.
Salesperson B
I can include the May onboarding at no cost — if the contract is signed by the end of this month. That is a reciprocal move: you get the implementation included, I get the timing I need to hold these terms. If we can both move on those two things, I think we have a deal.
How to read it: The blue dot marks a move you need to evaluate. Prospect lines are context only.
Group Activities
Role-play scenarios and discussion questions for group classes
🎯 Choose the Best Response
Work in pairs. For each negotiation scenario, choose the response that best demonstrates professional price negotiation. Discuss why before clicking.
Customer says
“A procurement manager says: 'Your competitor quoted us 18% below your price. Can you match it?'”
Salesperson responds…
Customer says
“A CFO says: 'We can do the deal, but I need net 60 payment terms instead of your standard net 30.'”
Salesperson responds…
Customer says
“A prospect says: 'Can you give me a better price if I sign today?'”
Salesperson responds…
Customer says
“Partway through a negotiation, a prospect says: 'I feel like we keep going in circles on price. Can we just settle this?'”
Salesperson responds…
🔗 Customer Profile Match
Match each negotiation situation to the best technique for handling it. Discuss your reasoning before clicking.
Plans / Options
Separate price from terms
The prospect's real constraint is a metric (monthly cost, Q1 budget) rather than the total number. Move the conversation to scope, phasing, or payment structure — because there may be a way to hit their number without touching the unit price.
Make a conditional concession
'I can work with a reduced price — but only if you can commit to twelve months / pay in one invoice / sign by the end of the month.' Attach a condition of equal or greater value before moving. Nothing is agreed until everything is agreed.
Anchor before they do
Introduce your full contract value or standard rate before the prospect can name their number. Once a number is on the table, all movement is measured against it — anchor high so that any concession still lands in a viable range.
Customers — which plan fits each one?
Situation 1
A prospect says the price is too high, but when you probe what 'too high' means, you discover their CFO is looking at monthly per-user cost — not the annual total. The annual total is actually within their budget.
Situation 2
A prospect asks for a 15% discount. You are willing to move on price, but only if something changes on their side. You need a condition to attach before you make any movement.
Situation 3
A prospect opens the negotiation by naming a number that is far below your standard rate, before you have had a chance to introduce your own pricing.
✏️ Finish the Salesperson's Line
The salesperson has started a negotiation response — finish the line using language from this lesson. Compare your completions before clicking for the suggested answer.
Customer
“A prospect says: 'I need you to come down 20% — that's the budget.'”
Salesperson
“Before I respond to that number — what are you able to …”
Customer
“A prospect asks for a discount and you are willing to move — but not for free.”
Salesperson
“I can work with a lower unit price — but only if …”
Customer
“Price negotiation has gone in circles and the prospect seems frustrated.”
Salesperson
“Let's separate the price from the terms for a moment — …”
Customer
“A prospect says: 'Your competitor is offering 18% below your price.'”
Salesperson
“I want to respond to that properly — but first, can I ask what was included in their quote? …”