Negotiation is at the heart of every successful deal. Whether you’re trading commodities, securing logistics contracts, or navigating financial agreements, your ability to negotiate determines the outcome. Some people think negotiation is about pushing hard and refusing to budge, but that couldn’t be further from the truth. The best negotiators aren’t the ones who demand the most; they’re the ones who know how to create value, build trust, and secure agreements that benefit everyone involved.

Over the years, I’ve negotiated deals in markets around the world. Some have been smooth, some have been tough, and a few have been downright brutal. But through all of them, I’ve learned that the best outcomes don’t come from playing hardball—they come from understanding the other side, knowing your leverage, and finding solutions that work for both parties.

Understanding the Other Side

The biggest mistake people make in negotiations is focusing only on what they want. They walk into a meeting with their list of demands, their price points, and their non-negotiables, without ever considering what the other party needs. That approach rarely works. If you don’t take the time to understand what’s important to the other side, you’ll struggle to find common ground.

Before I sit down at the table, I do my homework. I research the company, the individual I’m dealing with, their business model, and their challenges. If I can understand what pressures they’re facing—whether it’s supply chain issues, financial constraints, or competitive threats—I can shape my offer in a way that helps them while still benefiting me. Negotiation isn’t about winning at the expense of the other party; it’s about structuring a deal that both sides feel good about.

Building Trust and Credibility

Trust is the most valuable currency in any negotiation. If the other party doesn’t trust you, they will question every offer you make, hesitate on commitments, and look for ways to protect themselves at your expense. On the other hand, when trust is established, negotiations move faster, agreements are more durable, and deals become long-term partnerships instead of one-time transactions.

I’ve always believed that honesty and consistency go a long way in negotiations. Overpromising and underdelivering might get you a deal in the short term, but it destroys your reputation in the long run. People remember who plays fair and who doesn’t. The best deals I’ve secured have come from relationships built on trust, where both parties knew they could rely on each other to follow through.

One way to build trust is by being transparent. If there’s a problem, I put it on the table. If there’s a constraint I can’t move past, I make it clear from the start. Nobody likes surprises in business, and being upfront about challenges helps establish credibility. It also creates an opportunity to work together on solutions rather than ending up in a standoff.

Leveraging Market Knowledge

Knowledge is power in negotiation. The more you understand market conditions, pricing trends, supply and demand dynamics, and global events that affect trade, the stronger your position. Walking into a negotiation without knowing the numbers is like stepping onto the ice without skates—you’re going to have a hard time keeping up.

I always make sure I have the most up-to-date market data before I negotiate. If I’m discussing a commodity deal, I want to know where prices have been, where they’re expected to go, and what external factors could shift the market. If I’m negotiating a logistics contract, I want to understand fuel costs, shipping delays, and regulatory changes that could impact delivery timelines. Having this knowledge allows me to push for better terms with confidence because I’m not relying on guesswork—I’m working with facts.

Creating Win-Win Solutions

Some people walk into a negotiation with the mindset that for them to win, the other side has to lose. That’s the wrong approach. The best deals happen when both sides walk away feeling like they’ve gained something valuable. A lopsided deal might seem like a victory in the moment, but it often leads to resentment, contract disputes, or the other party walking away as soon as they find a better option.

I always aim for a structure that benefits both parties. That could mean adjusting payment terms to ease cash flow constraints, structuring a deal in phases to reduce risk, or finding creative solutions to logistical challenges. When the other party sees that I’m not just out to squeeze them but am actually invested in making the deal work for both of us, they’re far more willing to negotiate in good faith.

Knowing When to Walk Away

Not every deal is worth making. One of the hardest lessons I’ve learned is that sometimes, the best negotiation tactic is knowing when to walk away. If the terms don’t make sense, if the risks outweigh the benefits, or if the other party is being unreasonable, forcing a deal through can do more harm than good.

I’ve had negotiations where the numbers didn’t add up, and instead of forcing a compromise, I chose to step back. More often than not, walking away with confidence sends a message that you know your worth and aren’t desperate. And sometimes, when the other party realizes you’re willing to leave the table, they come back with better terms.

Negotiation isn’t about being the loudest voice in the room or refusing to compromise. It’s about strategy, preparation, and understanding what makes a deal valuable for everyone involved. It’s about building trust, using market knowledge to strengthen your position, and knowing when to push forward and when to step back.

Over the years, I’ve seen countless negotiations play out, and the ones that succeed follow the same principles—respect, preparation, and a commitment to finding common ground. The best deals aren’t the ones where one side walks away feeling like they’ve taken everything. They’re the ones where both sides walk away knowing they’ve built something that will last.

That’s the real art of negotiation. It’s not about winning—it’s about creating value.