Sales negotiations aren’t all created equal. Some are about holding your ground. Others are about getting creative. The best sellers know the difference—and use the right approach at the right time.
In this guide, we’ll break down five core types of sales negotiation you should master and we will give you some specific examples to help take this from theoretical to reality. There’s also a little FAQ around sales negotiations at the end. In the meantime, let’s get started, the 5 types of sales negotiation are:
- Distributive Bargaining
- Integrative Bargaining
- Mixed-Motive Bargaining
- Attitudinal Structuring
- Intra-Organizational Bargaining
Each one plays a role in effective sales training and sales cycle management. Let’s look at what they mean—and more importantly, how they show up in SaaS sales scenarios.
1. Distributive Bargaining (a.k.a. Win-Lose Negotiation)
Definition:
Distributive bargaining is what most people think of when they hear the word “negotiation.” It’s about slicing a fixed pie. One side wins a larger piece, and the other gets what’s left.
- Example in SaaS Sales:
- Your prospect says, “We need a 20% discount to move forward.”
- You respond, “I can offer 5% if you agree to a 2-year term and sign by Friday.”
You then go back and forth and settle on 10% or something like that. This is classic give-and-take. You’re conceding some ground, but anchoring the conversation with expiration dates and value exchange.
- When to use it:
- Late-stage deal cycles with procurement teams or finance departments, especially when they’re trained to play hardball.
- Personally I hate giving into this so quickly and easily, and I’ve got specific strategies I offer discounting training to prevent this from getting out of hand. Give me a call, I am happy to share them with you.
2. Integrative Bargaining (a.k.a. Win-Win Negotiation)
Definition:
This approach focuses on expanding the pie so that both parties walk away better off. It’s not about who loses less, but about discovering shared value.
- Example in SaaS Sales:
- You learn that your prospect’s biggest pain is onboarding complexity.
- Instead of cutting price, you include 60 days of white-glove onboarding and a dedicated CSM.
Now you’re solving for the real problem, not just the sticker price.
- Where N.E.A.T. Selling™ comes in:
- Integrative bargaining is at the heart of N.E.A.T. Selling™. The “E” stands for Economic Impact, – and when you ask the right questions, you uncover value levers that move the deal forward.
3. Mixed-Motive Bargaining
Definition:
This hybrid approach blends competition and cooperation. You’re trying to win, but also preserve the relationship for future business. Because we all want Customer Success to help with up-selling, cross-selling and expansion selling, right?
- Example in SaaS Sales:
- You’re negotiating with a multi-product customer who’s buying your CRM today but might need a revenue intelligence tool in six months.
- You give a moderate discount now, with a tiered pricing structure that makes expansion easier later. You can also anchor this in your contract so they don’t try to negotiate further when it’s time for the upsell and crossselling conversations.
You’re thinking long-term and playing chess—not checkers.
- Why this matters for SaaS:
- Subscription revenue depends on renewals and upsells. You’re not closing a deal; you’re opening a relationship. Sales training and enablement strategies must reflect this balance.
4. Attitudinal Structuring
Definition:
This isn’t about the content of the deal—it’s about building trust, shaping perceptions, and setting the tone for collaboration.
- Example in SaaS Sales:
- You show up prepared with a structured or customized version of your offering tailored to their industry or a very specific need. It will require some additional resources on your side. You share case studies, talk openly about potential risks, and frame your pricing around measurable ROI based on what you discover around need and economic impact of that need.
The buyer starts to see you as a partner—not a vendor.
- Sales Leadership Insight:
- This is especially important when you’re multi-threading. If your “champion” is going to introduce you to the CFO, they need to want you to win. Let’s face it the ROI question is going to come from the CFO if it has not already been asked.
5. Intra-Organizational Bargaining
Definition:
Not all negotiation happens externally. Sometimes, the real battle is inside the buying org—or even inside your own team.
- Example in SaaS Sales:
- Your champion is on your side, but procurement wants to push you to their preferred vendor list.
- Meanwhile, legal wants to redline your data privacy terms.
You coach your champion on how to manage internal objections, helping them become an internal seller.
- How to support this:
- Make sure you’ve mapped out the full buying committee and equipped your champion with the right content and business case.
Final Thoughts: Train for Every Type of Negotiation
Mastering these five types of negotiation isn’t about memorizing scripts—it’s about knowing how to flex your style to fit the situation. This is why negotiation is baked into every one of our sales training courses.
Whether you’re coaching a team through late-stage pricing objections or training SDRs to set discovery meetings that uncover value, knowing how to handle each negotiation type is a game-changer.
“Negotiation isn’t the final step in the sales process. It is the process.”
— Richard Harris
🔍 Quick FAQ: What Sellers Ask About Negotiation
Q: Is integrative negotiation always better than distributive?
A: No. Integrative negotiation is great for long-term value and relationships, but sometimes a good old-fashioned distributive move—like conditional discounting—gets the job done when time is tight.
Q: How do I stop reps from always defaulting to discounting?
A: Train them to ask better discovery questions (hint: N.E.A.T. Selling™), uncover real needs, and the actual economic impact of those needs. This will help position value before price ever hits the table.
Q: Can negotiation be taught, or is it just a skill people have?
A: It can 100% be taught. We’ve trained SDRs and AEs who hated conflict and turned them into confident, margin-protecting pros. It just takes the right coaching.
Ready to Stop Giving Away Margin?
Let’s talk about how to build a team that knows how to negotiate with confidence and close on value.
👉 Schedule a free call and we can chat.
📱 Or text/call me directly at 415.596.9149.