Commercial negotiation is the business jargon for a bargain. It means striking a fair deal, deriving the maximum output at the least possible cost that the person at the other end of the deal concedes to. The truth is, not even a child in India is alien to the concept. The people take to bargaining as naturally as fish to water. The good news is this skill, nurtured and developed by the incessant lowbrow street shopping, comes in handy in the highly sophisticated and disciplined business environment too. While the specifics of it differ, the essence of negotiation remains the same everywhere.

What is Commercial Negotiation?

Commercial negotiation is the process by which two parties with different agenda agree on the price of the business transaction they are involved in. It is marked by the communication of each party's interests and what they are expecting from the deal. Negotiations mean finding a leeway in the other's list of demands and getting themselves more elbow room. A negotiation becomes successful when each side concurs with the other's needs. The agreement usually happens only if both the sides find the deal has something in it for them, that is, if the agreement is mutually beneficial. This is a standard feature in all the business transactions.

It is a deal gone awry if one side walks out with all the benefits. In other words, it reflects the poor negotiation skills of the losing team.

What are Commercial Negotiation Skills?

The negotiator has to possess specific skills to talk their way out and cut an excellent deal. For the better or for worse, the audacity of a good negotiator lets them extract the maximum juice out of a proposition. They have to work in the more extensive interests of the company. Some of the skills that you need to develop for engaging in commercial negotiation are as follows.


This is a given. Without impressive communication skills, you cannot survive on the battlefield for long. If the negotiator lacks communication skills, it is highly likely that the person will let the other side have the more significant share of the pie. Besides, it is not possible to convey your ideas and objectives without effective communication. A healthy and friendly conversation has to transpire between the two sides for a quick and mutually beneficial deal. A communication gap or a lack of clarity may even lead to acrimonious disputes.


While in talks with an adversary to form a deal, it is important to appear confident and self-assured. It has a subtle psychological impact on the people watching. To make someone buy your proposal you have to sell it with conviction and confidence. The people who look like they know their stuff will have more takers for their proffered deal. Also, speaking with elegance has an edge. If the negotiator fumbles for words, it will come across as lack of confidence. As a result, the people who are engaging in the deal might not feel comfortable getting committed to the agreement. To gain the trust of the people at the other end of the contract, the negotiator should look competent and sure-footed.


While it is far-fetched to say that a person negotiating can pull someone into a deal just by appealing to them, it is true that the charisma of the negotiator works in their favour. It is not possible to charm someone into a deal, but it is possible to win their hearts and favour. The logic is pure and simple. If you can create an impression on the minds of your adversary and get into their good books, it is likely that you can also influence their decision and have them come around to your demands.

Thinking on one's feet:

Negotiations happen spontaneously. There is no single way to do it. There is, of course, the theory behind it. One can always think it through and do the homework. But when on the field, things may not go exactly as planned. Since, the person is on their own, representing the company, she/he have to be on their toes. Practices can bear no fruit if one fails to improvise. One has to continually change tactics according to the need of the moment and make it up as it as one goes along. This is crucial as the weight of the company is on the shoulders of the person negotiating on behalf of the whole organisation.

Thinking ahead:

The person conducting the negotiations must always be a few steps forward. It is essential for the person to have a vision of the company's future and how important the present deal is for that. It is necessary to have clarity of what one is looking to achieve from the deal and how important it is to make it. This way, you can create the changes you want to bring. By planning, the negotiator can decide on the strategies to follow. While this may seem contrary to the improvising bit about negotiations as mentioned above, the fact is that a successful negotiation is a little bit of both.

Besides these skills, one other thing that is common to all successful negotiators is their conduct — behaviour towards their opponent. The whole point of negotiations is to earn what is needed respectfully, without getting into disputes or conflicts. Almost all the successful negotiators maintain a friendly disposition and at least in the initial moments of their conversation, focus more on the things they agree with each other.

Another thing to remember while conducting negotiations is to discuss things in the order of its importance.

Why is Commercial Negotiation so Important?

To put it in a nutshell, negotiation skills are essential to keep your business floating. It is only through active negotiations that one can take maximum advantage of their adversary and make sure one is not taken advantage of. Good negotiations, simply put, means good business. Here are some ways in which good negotiations can prosper your business.

  • By getting a profitable deal from the suppliers. With negotiations, you can bargain for lower costs of raw materials and products. This will, in turn, increase the revenue and raise the profit of the business.
  • Negotiations set the stage for the future relationship between the two parties. It is a binding which both the parties have conceded to. Therefore, it forms the basis for resolving any dispute or conflict that unravels on their journey together.
  • The whole point of conducting negotiations is to win good contracts for the company. Good contacts guarantee and protect the rights of the parties involved. Also, it stands the test of time without raising any disinterest or conflicts.
  • While getting into an agreement, negotiations are the way to protect the intellectual rights. Before sealing the deal, the two parties must clarify on the ownership of the intellectual property rights so that no copyright infringement case may surface in the days forward.

Negotiations are one of the most important and the most difficult parts of doing business. Negotiations involve influencing the other person's decisions to suit one's own. It is no easy task. Moreover, it has the potential to make or break the business. It can quickly go either way. Therefore, it is important not to lose one's ground while finalising a deal.

There are a couple of things the negotiator must keep in mind before entering into negotiations. These are the things she/he might need to decide in prior. The first one being the in-depth knowledge of one’s own business and that of the other’s and chalking out plans to carry forward the mission. The second one is as important, which is to devise contingency plans, that is, the path that should be followed in case things are not going as planned.

If you are someone who wants to make a difference to your company, commercial negotiation skills should be developed and honed at an early stage. This necessitates proper training and education. There is no shortage of higher education for management in a country like India. It is all the matter of finding the right courses.

What are the courses offered by Hughes Global Education?

The Hughes Global Education provides a plethora of online courses for the working men and women to what their management skills. It offers an executive program in sales and marketing for the same.

Executive Programme in Business Management

This course is designed to provide mid-level managers and executives with a broad overview of the key concepts, strategies, techniques and tools needed to successfully meet the challenges of today’s global business environment. It will give participants the knowledge needed to work cross-functionally within any organization and become highly skilled in the basics of business management.

Executive Programme in Business Finance

This course gives an understanding of the new ways of business. With the ever-evolving manner of the business world, it is necessary for people to develop new tactics and strategies. The course focuses on just that. It also gives them the tools and modern techniques to do the functions that are expected of them. There is no doubting that the EPBF course will be your springboard to great heights.

The negotiation skills, usually borne out of practice, might elude even the most brilliant men and women. What is necessary is not just intelligence but also the persona of a leader. Nevertheless, the skills can be cultivated by the right training.