Mastering B2B Negotiations: Insights from a Seasoned Procurement Professional
In the complex world of business-to-business transactions, negotiation skills can make the difference between a mediocre deal and a transformative partnership
In the complex world of business-to-business transactions, negotiation skills can make the difference between a mediocre deal and a transformative partnership. Milena Reyes, a procurement manager with nearly eight years of experience across pharmaceutical giants, consulting firms, and tech companies like Leboncoin, shares her hard-earned insights on the art and science of B2B negotiations in this revealing conversation with sales expert Maxime on the "Aux Commandes" podcast.
The Reality of Learning Negotiation Skills
Beyond Business School Theory
While many professionals enter the procurement field with business school credentials, Reyes emphasizes that real negotiation expertise comes from practice, not textbooks. "I don't think I learned negotiation at school," she explains. "I learned theories, vocabulary, and concepts, but that doesn't make you a good negotiator."
The challenge with theoretical approaches is that every negotiation is unique, influenced by countless variables:
The personality and style of your counterpart
The timing and context of the deal
The specific products or services being negotiated
The relative power dynamics between organizations
The Apprenticeship Model
Reyes credits much of her negotiation development to working alongside experienced mentors, particularly Eric Bourgeois at Leboncoin. This hands-on learning approach involved:
Extensive practice with real stakes and consequences
Immediate feedback on negotiation performance
Role-playing exercises to prepare for different scenarios
Post-negotiation analysis to identify areas for improvement
Essential Negotiation Fundamentals
1. Preparation is Non-Negotiable
The foundation of successful negotiations lies in thorough preparation. Reyes outlines several critical preparation elements:
Define Your Objectives Clearly:
Know exactly what you want to achieve
Establish your ideal outcome, acceptable alternatives, and walk-away points
Prepare for multiple scenarios based on different counterpart responses
Research Your Counterpart:
Understand their business pressures and motivations
Anticipate their likely negotiation points
Identify potential areas of mutual benefit
Prepare Your Team:
When involving internal stakeholders in negotiations, clear role definition is crucial. "Information is gold, so you need to share it sparingly," Reyes notes. Uncoordinated team members can inadvertently reveal sensitive information or undermine negotiation positions.
2. Communication Channel Strategy
One of Reyes' key tactical recommendations is simple but powerful: pick up the phone. "Email negotiations don't work because it's very easy for the other party to say no via email. By phone, it's more complicated."
This preference for voice communication stems from several advantages:
Immediate response and clarification
Emotional nuance and tone detection
Harder for counterparts to dismiss requests outright
Real-time problem-solving opportunities
3. Active Listening as a Competitive Advantage
Many negotiators focus intensely on what they want to say while neglecting what they can learn. Reyes emphasizes the strategic value of listening:
Gather intelligence about the counterpart's priorities and constraints
Identify unexpected opportunities for mutual value creation
Demonstrate respect that can improve relationship dynamics
Never interrupt – it's both impolite and strategically counterproductive
4. Emotional Regulation and Professional Detachment
Perhaps the most challenging aspect of negotiation is managing emotions and maintaining objectivity. Reyes draws inspiration from the Toltec principle of "don't take anything personally."
Why Emotional Control Matters:
Counterparts may deliberately try to destabilize you
Personal reactions can cloud judgment about deal value
Emotional responses can reveal weaknesses in your position
Professional detachment enables clearer strategic thinking
Creating Professional Personas:
Reyes describes adopting different "characters" for different negotiation contexts – not deception, but strategic adaptation of communication style and approach based on the situation and counterpart.
The Price-First Reality
Despite the complexity of B2B negotiations, Reyes is refreshingly honest about initial evaluation criteria: "I won't lie – the first thing I look at is price. I'm not saying I'll focus only on price, but if you ask me the first thing I check when opening a supplier proposal, it's the price."
This price-first approach serves as an initial positioning tool, but sophisticated procurement professionals quickly move beyond simple cost comparisons to evaluate:
Service quality and reliability
Delivery timelines and flexibility
Contract terms and payment conditions
Long-term partnership potential
Additional value-added services
Building Internal Stakeholder Relationships
The Education Challenge
One of the most overlooked aspects of procurement success is internal relationship management. When Reyes joined Leboncoin, the procurement function was newly created, requiring extensive internal education about the value of professional purchasing.
Proving Value Through Results:
Demonstrate concrete savings and improvements
Show how procurement expertise enables better business outcomes
Provide additional services or capabilities for the same budget
Remove administrative burden from internal teams
Integration Strategy:
Rather than appearing as a last-minute cost-cutting function, Reyes advocates for early integration into business processes. She requests inclusion in initial supplier discussions, even when her immediate input isn't required, to build relationships and understanding before formal negotiations begin.
Training Internal Teams
Recognizing that not all company spending flows through procurement, Leboncoin implemented internal negotiation training programs. These sessions focused on:
Practical scenarios rather than theoretical concepts
Role-playing exercises with realistic business situations
Quick, engaging formats that respected busy schedules
Cross-functional learning that benefited various departments
Advanced Negotiation Strategies
Partnership vs. Transactional Approaches
For strategic suppliers with significant business impact, Reyes advocates shifting from traditional buyer-seller dynamics to partnership models. This approach involves:
Deeper Relationship Investment:
Regular business reviews and performance discussions
Daily communication on operational issues
Collaborative problem-solving for mutual challenges
Long-term strategic planning alignment
Expanded Negotiation Variables:
When price negotiations reach their limits, creative procurement professionals explore alternative value creation:
Payment terms optimization for cash flow benefits
Contract duration adjustments for security and planning
Cross-selling opportunities leveraging company assets
Marketing partnerships and promotional collaborations
Managing High-Stakes Negotiations
For critical suppliers where alternatives are limited, negotiation approaches must adapt:
Increased preparation time and resources
Senior stakeholder involvement for relationship building
Multiple negotiation rounds with strategic patience
Focus on mutual value creation rather than zero-sum outcomes
Key Takeaways for B2B Success
Milena Reyes' experience across diverse industries and company sizes offers several universal principles for B2B negotiation success:
Preparation trumps natural talent – invest time in understanding your position, objectives, and counterpart
Relationships matter more than transactions – build genuine partnerships for sustainable business success
Communication channels influence outcomes – choose phone calls over emails for important negotiations
Emotional intelligence is a competitive advantage – manage your reactions and read others effectively
Value creation beats price battles – explore creative solutions that benefit both parties
The evolution from theoretical knowledge to practical expertise requires patience, practice, and continuous learning. As Reyes notes, "The Milena of five years ago negotiated very differently from the Milena of today." This growth mindset, combined with systematic skill development, creates the foundation for long-term success in the complex world of B2B negotiations.