In multi-party negotiations, the first country to sign a deal gets the most favorable terms. Each subsequent deal is structured on a "higher stair," making it progressively less attractive. This creates intense pressure and FOMO, punishing those who wait and see, as demonstrated by India's costly delay.
Frame every negotiation around four core business drivers. Offer discounts not as concessions, but as payments for the customer giving you something valuable: more volume, faster cash payments, a longer contract commitment, or a predictable closing date. This shifts the conversation from haggling to a structured, collaborative process.
Warner Bros. CEO David Zaslav employed a powerful negotiation tactic by not immediately responding to Paramount's offers. This silence compelled Paramount to repeatedly sweeten its own deal—increasing both the price per share and the percentage of cash—in an effort to secure a response, effectively negotiating against itself.
If a customer asks to push a signed deal past an agreed-upon deadline, don't say yes or no. Saying "I don't know if we can hold the price" creates productive uncertainty. This forces them to weigh the risk of losing their discount against the inconvenience of finding a way to sign on time, often leading them to solve the problem themselves.
In a competitive M&A process where the target is reluctant, a marginal price increase may not work. A winning strategy can be to 'overpay' significantly. This makes the offer financially indefensible for the board to reject and immediately ends the bidding process, guaranteeing the acquisition.
Trump's 'hokey pokey' with tariffs and threats isn't indecisiveness but a consistent strategy: make an agreement, threaten a severe and immediate penalty for breaking it, and actually follow through. This makes his threats credible and functions as a powerful deterrent that administrations lacking his perceived volatility cannot replicate.
Unlike previous administrations that used trade policy for domestic economic goals, Trump's approach is distinguished by his willingness to wield tariffs as a broad geopolitical weapon against allies and adversaries alike, from Canada to India.
The Trans-Pacific Partnership (TPP) successfully incentivized countries like Peru to raise labor standards. The carrot wasn't better access to the U.S. market, which they already had, but new access to Japan's historically closed market, which the U.S. helped negotiate.
To finalize an 18-month negotiation with music labels, Eleven Labs set deadlines to create urgency. These 'forcing functions' proved effective in driving the deal forward, even when the dates had to be moved. The imposed timeline compelled parties to make decisions and find a resolution.
Instead of lowballing, Bending Spoons makes a very fair, near-final offer immediately. This tactic builds a reputation for seriousness, similar to Warren Buffett's approach. It avoids lengthy back-and-forth and signals that they are not a buyer that can be "pushed around," creating an efficient and powerful deal-making process.
Contrary to popular belief, Trump's trade strategy isn't protectionism. He uses reciprocity, leverage, and executive flexibility to force other countries to lower their own trade barriers, ultimately aiming for a world with freer trade for the U.S.