B2B Street Fighting

About the Author

Brian J. Dietmeyer is a renowned negotiation expert and the CEO of Think! Inc., a global negotiation consultancy he founded in 1996 with Dr. Max Bazerman of the Harvard Business School. Before establishing Think! Inc., Dietmeyer served as VP, National Account Sales for Marriott International. He is also the author of Strategic Negotiation, a seminal work in the field. His vast experience spans six years of dedicated research and fourteen years of practical application and consulting on more than 20,000 business-to-business negotiations across nearly fifty countries.

Main Idea

B2B Street Fighting: Three Counterpunches to Change the Negotiation Conversation by Brian J. Dietmeyer revolutionizes the traditional understanding of negotiation. Contrary to the belief that negotiation is an unpredictable soft skill, Dietmeyer asserts that it is a highly repeatable and predictable process. He introduces three strategic counterpunches to help negotiators shift the conversation from the price of products and services to the value of solutions, effectively neutralizing 97% of buyer negotiation tactics.

Table of Contents

1. Introduction: Fight Back Against the Economic Meltdown
2. Negotiation Tactics Are 97 Percent Predictable
3. Problem #1: Commoditization Pressure
4. Counterpunch #1: Consequence of No Agreement (CNA) Analysis
5. Problem #2: Price Pressure
6. Counterpunch #2: Trading
7. Problem #3: Selling Value Then Negotiating Products and Services
8. Counterpunch #3: Multiple Equal Offers (MEOs)
9. Conclusion: Negotiating Like a B2B Street Fighter

Introduction: Fight Back Against the Economic Meltdown

In the tumultuous landscape of B2B negotiations, a representative must not only advocate for their company's interests but also strategically outmaneuver competitors and negotiate optimal solutions for customers. Dietmeyer likens a skilled negotiator to an ultimate fighter, prepared long before stepping into the ring. This preparation involves extensive data collection, starting weeks or even months ahead of negotiations, to build a robust, fact-based strategy.

As Dietmeyer emphasizes, “Our street fighter is more geek than Goliath; his or her strength comes from the accumulation of well-documented data.” This meticulous preparation ensures that when negotiations commence, the negotiator can respond rationally and effectively, grounded in solid data rather than emotion.

Negotiation Tactics Are 97 Percent Predictable

Despite the common belief that negotiations are random and unpredictable, Dietmeyer’s research reveals that buyer tactics follow predictable patterns. 97% of these tactics fall into two categories: referencing alternatives to your offer (e.g., "I will build it myself," or "I will buy from a competitor") and leveraging these alternatives to ask for concessions. Recognizing and understanding these patterns allow negotiators to anticipate and counteract them effectively.

“When you look at the tactics buyers use to keep the seller reacting at the negotiating table, 97 percent of them fall into just two categories.” - Brian J. Dietmeyer

Problem #1: Commoditization Pressure

One of the primary challenges in negotiations is commoditization pressure, where buyers treat your product or service as a commodity, thereby forcing a battle for the lowest price. To combat this, it’s crucial to demonstrate that your offering is not just another commodity but a unique solution that delivers superior value.

“Value, then, must be mapped against the customer's needs and viewed from the perspective of the total ecosystem.” - Brian J. Dietmeyer

Counterpunch #1: Consequence of No Agreement (CNA) Analysis

The first counterpunch, CNA analysis, helps neutralize commoditization by focusing the conversation on the real value being offered. A CNA statement outlines the buyer’s alternatives if the deal falls through and emphasizes the unique benefits they would miss out on. By understanding and articulating these consequences, negotiators can shift the discussion to a more productive and collaborative space.

For example, common CNA-related tactics include: