Understanding Negotiations and the Different Types

Negotiation is something every one of us encounters, whether in business, relationships, or everyday life. It’s the process of two or more parties coming together to reach an agreement, but contrary to what many believe, not all negotiations look the same. Some involve high stakes with millions of dollars or entire companies on the line, while others may be about something as small as agreeing where to go for dinner.

One thing, however, is always true: if you are at the negotiating table, it’s because you need something from the other side. Without that need, there would be no reason to sit down. Recognizing this reality is the first step to becoming a better negotiator.

The Best and Second-Best Negotiations

People often think that the only way to “win” is to push hard in every negotiation, but that’s not the case. In fact, the best negotiation is no negotiation at all. When both parties already align in values, interests, or goals, there is no back-and-forth needed. The deal flows naturally, trust is established, and both sides leave the table satisfied. These moments are rare, but they do exist.

The second-best negotiation is one that is slow, deliberate, and thoughtful. Rushing negotiations almost always produces weaker outcomes because emotions run high, preparation is limited, and important details can be overlooked. When both sides take the time to prepare—analyzing what they need, what they are willing to give, and what the other party values—negotiation shifts from a tug-of-war to a structured conversation. The result is almost always a more sustainable agreement that benefits both sides.

Why Negotiations Are Difficult

Negotiations are challenging because of human nature. At the core, people want what they want. Often, they come to the table with a fixed idea of what success looks like and believe they should not have to move off that line. This rigid mindset is where many negotiations stall or collapse.

Another factor is leverage. In almost every negotiation, there is an A Side and a B Side. One party usually has more power, whether it’s financial resources, market position, or urgency of need. The A Side doesn’t always have to be the “bigger” party—it can simply be the one with stronger alternatives. For instance, a business that can walk away without consequence has more leverage than one that desperately needs the deal to survive.

The mistake many people make is failing to recognize which side they are on. If you’re the B Side but act like you’re the A Side, you risk pushing too hard, losing credibility, or walking away empty-handed. Self-awareness in negotiation is just as important as strategy.

The Trap of Constant Negotiation

Some people fall into the trap of believing they must negotiate with everyone, all the time. They treat every interaction like a deal that needs to be won. This mindset is dangerous because it creates unnecessary conflict, wastes valuable time, and often leads to outcomes that don’t move the needle forward.

Not every situation requires negotiation. Sometimes the smartest move is simply to agree, move on, and save your energy for bigger opportunities. In business, constant negotiating can actually harm relationships by making partners, employees, or vendors feel nickel-and-dimed.

There’s also the reality that some people will force you into a negotiation as a strategy. Their goal isn’t mutual success—it’s leverage. They may attempt to corner you into making quick concessions that give them short-term gains while setting them up for long-term advantage. Learning how to spot these tactics—and knowing when to walk away—is a critical skill.

Negotiation as a Strategic Skill

At its highest level, negotiation is not about winning or losing—it’s about managing human interaction. A skilled negotiator knows how to:

Recognize leverage and understand which side they are on.
Listen deeply to uncover what the other party truly values.
Balance firmness with flexibility, making concessions strategically instead of emotionally.
Avoid being rushed or forced into decisions that don’t serve their goals.
Maintain relationships even when the outcome isn’t perfect.

This is why being a master negotiator is one of the most underpaid and under-recognized skills in the world of communication. It’s not just about money—it’s about influence, problem-solving, and building agreements that last.

Practical Examples of Negotiation in Action

Business Partnerships: Two companies exploring a joint venture may discover that the strongest deal comes not from who takes the larger percentage, but from structuring the relationship to play to each other’s strengths.
Vendor Agreements: A vendor may try to rush you into a new contract by emphasizing urgency. A thoughtful negotiator pauses, evaluates the long-term implications, and ensures that the terms align with future needs.
Workplace Discussions: Even something as small as negotiating project timelines requires recognizing who holds leverage. The employee may need more time, but the employer may need immediate results. Successful negotiation balances both needs.

Final Thoughts

Negotiation isn’t about arguing, nor is it about winning at the expense of the other side. It’s about understanding needs, managing leverage, and moving toward an outcome that works in the long run. Sometimes that means walking away. Sometimes it means agreeing without resistance. And sometimes it means putting in the slow, careful work of building a strong deal.

At BL Consulting, we believe negotiation is one of the most valuable skills a leader can master. That’s why we specialize in teaching negotiation strategies and providing hands-on negotiation services. Whether you’re facing a high-stakes business deal, a vendor dispute, or even internal leadership challenges, we help you navigate the process with clarity, confidence, and control.

Because at the end of the day, negotiation isn’t just about deals—it’s about people.