Author: Constantin Măgdălina, Expert Trends and Emerging Technologies

Negotiation is one of the most undervalued skills in the Romanian business environment. Many managers view it as a “sales” skill or a simple price game. In reality, negotiation is a strategic process that directly influences profit, relationships with partners, team efficiency and business sustainability.

Every company, regardless of size, negotiates with suppliers, customers, banks, employees or investors. The difference between those that just survive and those that grow comes from the way these companies defend their interests through negotiation.

When the market is hyper-competitive and margins are compressed, negotiation is no longer just a useful skill, but an essential condition for profitability and sustainable development. That is why we see that in companies that invest in developing negotiation skills, resilience and the ability to transform every discussion into an opportunity increase.

Negotiation is a proccess, not an instinct

Many professionals confuse negotiation with the simple ability to convince or insist. In reality, effective negotiation is based on rigorous preparation, understanding the objectives of both parties, and a clear strategy. Every step counts: from analyzing the client’s needs, to defining the minimum acceptable limits, to formulating the final proposal.

Companies that do not treat negotiation as a strategic process constantly lose financial advantages. For example, a salesperson who quickly accepts the client’s first counter-argument and lowers the price is leaving money on the table. Over time, these small losses accumulate and turn into thousands or tens of thousands of euros lost annually.

Negotiation is not about unilateral gain, but about balance. A solid partnership is built on trust and transparency, but also on respecting one’s own interests. Without such an approach, companies become dependent on external pressure and lose the ability to control the commercial relationship.

How much does a lack of negotiation skills cost?

Let's imagine that we have a team of five salespeople. Each has the goal of selling products worth 100,000 euros per month. But, in order to close deals faster, each one gives up 2% of the price, on average. It seems like a small amount. In reality, each one gives up 2,000 euros per month.

Five salespeople mean 10,000 euros lost every month. In a year, the loss reaches 120,000 euros. With this money, we could finance a complex marketing campaign, a new product or a digitalization project.

Worse, to compensate for the loss, the team would have to sell at least 2% more just to return to the same level of profit. Extra effort, overtime, more pressure, but without a better real result.

This is the reality of companies that do not negotiate effectively. Lack of preparation, haste, fear of losing the customer and the absence of clear discount policies lead to constant losses. Many managers only notice this phenomenon when profits are falling and costs are rising, but by then it is already too late.

Negotiation has a direct impact on turnover and profitability. A team that knows how to defend its value, manage objections and build trust reduces pressure on pricing and maintains healthy margins.

Negotiation as a tool of differentiation

In mature markets, companies no longer compete solely on products, but on the way they negotiate and build relationships. Negotiation becomes a competitive advantage.

A concrete example: two companies offer the same service at the same starting price. One prepares its negotiation by analyzing the client's needs, contractual risks, flow and payment terms. The other goes by instinct.

The first manages to conclude a fair and sustainable contract, with clear clauses that are satisfactory to both parties. The second wins a quick transaction, but under slightly unfavorable conditions. In the short term, the difference seems small. In the long term, the first company strengthens its position within the partnership and reduces the risk of non-payment.

Companies that understand the value of negotiation transform this process into a growth tool. They train teams to prepare for each meeting, collect data, anticipate objections and use ethical persuasion techniques. Negotiation becomes part of the organizational culture.

Internal negotiation, a forgotten component

Negotiation doesn’t just happen with customers or suppliers. It happens every day between colleagues, between departments, or between managers and teams. When people don’t know how to negotiate internally, the organization loses efficiency.

For example, a project manager who doesn’t know how to negotiate resources ends up delaying deliveries. A CFO who doesn’t negotiate payment terms with suppliers blocks cash flow. An HR manager who doesn’t negotiate training budgets misses development opportunities for colleagues.

Internal negotiation brings clarity, balance, and accountability. Companies that encourage it reduce conflict, increase cooperation, and speed up decision-making.

How to build teams that negotiate effectively

In many companies, negotiation is not a priority. It is considered a “talent” and not a skill. The truth is that negotiation is learned. It is based on clear techniques, psychology and good preparation.

Companies that invest in negotiation training quickly see an increase in margins and a reduction in commercial conflicts.

For example, one company that offered an intensive negotiation program to its sales team increased net profitability by 12% in just six months. This result came not from higher volumes, but from protecting the price and value offered.

Negotiation is not something you improvise. It is something you learn. It is something you practice. And it is something you perfect. How?

• Define the commercial policy: Every company must establish clear limits for discounts and the conditions under which they can be granted. This way, sellers have concrete benchmarks and no longer give in under pressure.
• Invest in training: Applied negotiation courses help employees recognize partners’ tactics, respond with logical arguments, and maintain control over the discussion.
• Monitor performance: Analyze the impact of negotiations on margins and the duration of the sales cycle. Identify patterns and constantly improve the process.
• Train empathy: Effective negotiation is not confrontation, but collaboration. People who listen, ask questions, and understand their partner’s interests build lasting agreements.
• Recognize and reward results: The best negotiations are not those that only bring immediate profit, but those that build stable relationships and reduce risks.

Through these actions, negotiation becomes a natural part of the way we work, not a reaction to pressure.

Negotiating in difficult times

Economic crises, inflation, and fierce competition expose the difference between those who know how to negotiate and those who give in. In unstable times, every percentage counts. Companies that maintain their negotiation discipline manage to preserve margins, secure partnerships, and avoid destructive compromise.

For example, in 2020, many companies accepted disadvantageous conditions just to keep customers. Those that knew how to negotiate flexibly, offering payment terms, not massive discounts, came out stronger. Strategic negotiation does not mean rigidity, but intelligent adaptation.

When your team knows how to negotiate, you are in control. You no longer react, but choose. You no longer lose money, but create value.

Negotiation is a skill that separates profitable companies from vulnerable ones. It is not a matter of luck or talent, but of discipline, preparation, and strategy.

Every percentage lost through an unjustified discount means extra effort, wasted time, and wasted resources. And when these losses become constant, they can lead to the decline of a business.

Negotiation is about more than money. It is about positioning, trust and balance. When you learn to negotiate, you protect not only your profit margin, but also the future of your company. Every meeting, every offer and every discussion becomes an opportunity to add value and build strong partnerships.

Companies that invest in this skill train their teams to think strategically, communicate effectively and defend the value they offer. And this is the key to any sustainable success.

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About Constantin Măgdălina

Constantin Măgdălina has 15 years of professional experience, during which he worked for multinational companies, both in the country and abroad. Constantin has a Master's degree in Marketing and Communication at the Bucharest Academy of Economic Studies. He is LeanSix Sigma and ITIL (IT Information Library®) certified, which facilitates a good understanding of processes and transformations within organizations. On the other hand, the certification obtained from the Chartered Institute of Marketing completes his business expertise. In the more than 4 years of activity within a Big 4 company, he initiated and coordinated studies that analyzed aspects related to the business environment in Romania. Among them are the economic growth forecasts of companies, knowledge management, the buying experience in the era of digital consumers, the use of mobile devices or the customer-centricity of companies in Romania. He is the author of numerous articles on topics related to innovation, streamlining business processes, digital transformation, emerging trends and technologies. He is invited as a speaker at numerous events and business conferences.