Notes for owners · Sales management
Negotiation and terms: what to give, what to hold and what to write down
A small-business negotiation rule: trade a term for a term, give what costs you little, never give away price, scope or payment security for free, and write the agreed points down the same day.
The GullySales team · Updated 17 Oct 2026 · 6 min read
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In a negotiation, every give needs a get. When a buyer asks for a lower rate, you answer with a condition that costs them little and protects you: a bigger lot, an advance, a firmer date, a shorter payment window. Decide before the call which concessions are cheap for you and which are dear. Afterwards, write down what was agreed and send it the same day, because a handshake is remembered differently by each hand.
Which concessions are cheap, and which are dear?
A concession is cheap when it costs you little and the buyer values it. It is dear when it costs money or weakens your hand in the next deal. Sort them before the meeting, not while someone is pressing you.
| Buyer asks for | What it really costs you | What you can ask for in return |
|---|---|---|
| A lower rate on the whole lot | Margin on every unit | A bigger quantity, or one delivery instead of four |
| Longer credit | Money tied up, and the risk of delay | An advance, or a cheque dated before dispatch |
| Free delivery | The freight and a truck's time | Unloading help and a fixed day |
| Changes after approval | Rework, and your schedule | Changes charged at the rate in the quote |
| A held price | Exposure if your costs rise | A confirmed order by a stated date |
The rows where you will not move without a trade form your hold list. Your own table will differ. A fabricator's slack is not a caterer's. What matters is knowing which row you are in before you answer.
What should you never give for free?
Three things: price, scope and payment security. Move on any of them and say what you want back.
Price is the obvious one. A discount given because the buyer pushed may teach the buyer to push next time. Scope slips more quietly: "while you are at it, could you also..." is the start of unpaid work, so say yes and add it to the quote. Payment security is where good orders turn into collection problems, because the terms were eased for a buyer who seemed trustworthy. If you are a small supplier selling to a large buyer, check the statutory payment-period rules for MSME suppliers with your adviser before you accept 60 or 100 days.
How does "if you, then I" work?
Say both halves together. "If you confirm all the sites this week and pay a third on confirmation, I can hold this rate." The buyer hears a price tied to a condition, not a refusal.
Never concede first and ask afterwards. "Fine, I will drop it. Could you also pay in advance?" gives away the move and then begs a favour. Reverse the order.
Make each concession smaller than the last. If your first step is large and your second is small, the buyer learns where your floor is, and the buyer will stop pushing exactly there.
For example: a marble supplier in Kishangarh
Imagine a supplier in Kishangarh quoting polished marble slabs to a builder for three housing blocks. The builder's purchase head says, "Your rate is high. Take something off, and deliver to each block free, and we pay in 60 days."
The owner wants the order, so the owner agrees to all three on the phone, including 4 per cent off. Weeks later the second block asks for slabs cut to a new size "as per the architect", the 60 days become 100 while the accounts office waits for a signature, and the owner finds they have given price, freight and credit together with nothing in writing. On invented numbers: that discount on a ₹46 lakh order is ₹1.84 lakh, and free delivery to three sites adds about ₹70,000 of freight. That is roughly ₹2.5 lakh given up, before counting what 100 days of credit costs on the balance.
The owner reopens the deal with a ledger. Left column, what is given: a smaller discount, delivery to all three blocks, 45 days. Right column, what comes back: all three blocks ordered together, a quarter paid on confirmation, size changes after sign-off charged at the quoted rate. It goes out that evening in six lines. The builder replies "ok, agreed" on everything except the quarter in advance, which shrinks to a tenth. The discount is smaller, but each part of it has a condition and a record.
What should the same-day message contain?
Keep it short enough to be read. Cover the items supplied, the price with tax shown, any discount and its condition, quantities and dates, the payment plan, and one sentence on what happens if the scope changes. End with: "Please reply 'agreed' or tell me what to correct."
That last line matters. A reply turns your summary into a shared record, and silence does not. For a long arrangement or a large sum, ask your own adviser how a proper agreement should be drawn.
When should you walk away?
When every concession is met by another demand and the buyer will not say what is offered in return, you are being worked, not negotiated with. Set a floor before the call: the price or payment term below which the order costs you more than it pays. If the offer goes under it, decline politely: "This is as far as I can go. If the numbers change, I would like to hear from you."
Also stop when the person across the table cannot decide. Talking to someone who must go back to a boss gives that boss your position without you present. Ask to meet the decision-maker, or put your terms in writing and let them travel.
Draw your own ledger
Think of the last three times a buyer pushed you. For each, write what you gave and what you got. If the right column is empty, you have found where margin leaks. Negotiation is one stage of the sales process; if you want help setting the hold list for your own trade, negotiation and closing support is the work, and the first step is to tell us what you need.
