Deadlines are looming. Maybe it's the end of the fiscal year or you just received a mandate from management to complete that project ASAP. There's big-time pressure on you to get the contract done. So you just give the other side what it wants, like 20% off for the next 12 months.

Please...don't go there. Decisions made in desperation can eat away at your company's profits. Plus, you may set a dangerous precedent. When facing time pressures, you need to sharpen your negotiation skills. That means developing a clearly defined wish list and determining exactly what you're willing--and not willing--to give up.  

For example, as a supplier, you may decide that a 20% discount is okay if the client agrees to purchase the goods at the regular price for a 12-month period beginning Jan. 1, 2015. Or, if the 20% reduction is "out of bounds," offer another concession such as free shipping for the next six months.

Only you can determine what's out of bounds (see Tutorial).