Bold Session Recap: How To Negotiate More Profitable Deals
Meet Mike Lander, a former procurement director with over 20 years of experience managing procurement on a global scale.
Mike has been on both sides of the table—overseeing deals worth more than £500 million.
Now, he leverages his expertise to empower agencies and service providers with the skills to negotiate better, more profitable agreements.
Recently, we had the chance to sit down with Mike to discuss his insights on mastering negotiation and trading value, instead of defaulting to discounts.
In the past, you have bought, grown, and sold businesses for seven-figure sums and negotiated deals worth over £500 million. How did you get where you are now?
My career has been quite eclectic—nonlinear—and I think that’s becoming more typical for people today. I started as an engineer, but I soon realized I wanted to explore more than just engineering. That curiosity led me into banking, which I found both challenging and rewarding.
Later, I decided to pursue an MBA, which opened doors to mainstream consulting. I worked with firms like KPMG, McKinsey, and PwC, where I was immersed in high-pressure environments, long hours, and complex problem-solving. These roles taught me a tremendous amount—not just about consulting and procurement but also about understanding people, building relationships, and creating strategies that deliver long-term value.
Procurement became a key focus in my career, whether as a buyer, an advisor, or even running outsourced procurement services. Over time, I realized I had developed an aggregate understanding of how deals are made and how value is negotiated. This helped me execute over £500 million worth of goods and services transactions. After selling a procurement consultancy I co-founded, I felt ready for a new challenge.
It was my wife, a former CMO in the tech world, who suggested I use my buyer’s expertise to support sellers. That idea really resonated with me, and now I work closely with agencies, helping them qualify opportunities more effectively, convert proposals into actual business, and negotiate more balanced, profitable contracts. The core of my work is helping sellers see the deal from the buyer’s perspective so they’re better equipped to succeed.
Do you see negotiation as a big problem within the agencies you work with? What’s the typical framework you apply?
Yes, it’s a significant challenge for many agencies. Often, agencies spend an enormous amount of time—sometimes 30 or more hours—developing creative proposals and preparing for pitches. They craft insights, conduct research, and rehearse their presentations to perfection. But when they’re shortlisted, and it’s time to negotiate the actual terms of the deal, they might spend less than an hour preparing. That’s a huge missed opportunity.
On the other side of the table, buyers are often highly trained negotiators. Big brands understand that skilled negotiation drives profitability and value for years to come. This creates an imbalance where creative, agile, and innovative agencies face off against negotiation-savvy, process-driven buyers. The result? Agencies often agree to terms that compromise profitability and lead to challenges like over-servicing or fear of losing a major client.
To address this, I apply a four-step framework:
- First, it’s crucial to understand the context and objectives of the deal. This means clarifying what both parties want to achieve, identifying their priorities, and mapping out potential walk-away positions.
- Second, we define the negotiation process and timescales, outlining the steps and ensuring alignment with the counterparty.
- Third, we prepare deal variables by identifying all the negotiable elements—such as price, scope, and KPIs—and setting both minimum acceptable and ideal outcomes for each.
- Finally, we engage in the negotiation, iterating as needed and refining our approach based on the counterparty’s responses.
Interestingly, over 70% of the value in any negotiation comes from the preparation phase—steps one through three—not from the actual discussions. When agencies invest time upfront, they significantly increase their chances of negotiating a profitable, balanced agreement.
What’s some concrete advice on strengthening your negotiating strategy?
The most important thing you can do to strengthen your strategy is to prepare thoroughly. Start by using the framework I described earlier to identify all the key variables and understand your counterparty’s perspective.
Building trust is another critical element. Research has shown that trust builders—negotiators who emphasize empathy, flexibility, and collaboration—consistently outperform others, especially in high-stakes, complex deals.
One of the biggest mistakes agencies make is falling into the trap of discounting. Instead, focus on trading value. For example, if the counterparty pushes for a lower price, ask for concessions, such as a reduced scope of work, longer contract terms, or lower SLAs. Always know your BATNA or Best Alternative to a Negotiated Agreement because a strong pipeline gives you leverage. When your pipeline is weak, desperation can lead to poor deals.
Another key advice is to ask open-ended questions to uncover the motivations behind your counterparty’s demands. Don’t just accept “we need a discount” at face value—dig deeper to understand why that demand is being made. This approach not only helps you address their concerns but also allows you to identify creative solutions that benefit both sides.
Finally, keep negotiations rational and respectful. Stay calm, stay focused, and aim for adult-to-adult conversations where facts and logic guide the discussion.
How do you effectively shift the conversation from discounting to trading value? How do we handle situations where the counterparty pushes for a discount despite our focus on value?
Shifting the conversation from discounting to trading value requires a strong understanding of your offering’s economic impact. Agencies, even creative ones, can quantify the value they bring. For example, research from Kantar shows that the most creative and effective ads generate more than four times as much profit. Use such data to tell a compelling story about how your work drives outcomes.
If a counterparty insists on a lower price, never agree without asking for something in return. For instance, you might offer a reduced rate in exchange for an extended contract duration, reduced scope, or introduction to another client. When you trade, you maintain the perceived value of your services while finding a mutually beneficial exchange of value.
If negotiations stall, take a step back and educate your counterparty on the consequences of failing to reach an agreement. This isn’t about issuing threats but helping them see collaboration’s mutual benefits. Always position your services as an investment with the potential for high returns rather than a cost to be minimized.
Can you suggest any resources—books, blogs, podcasts, or even case studies an agency could review to learn more?
There are many excellent resources for agencies looking to improve their negotiation skills. I highly recommend William Ury’s The Five Steps to Breakthrough Negotiation, which offers practical strategies for overcoming deadlocks and reaching agreements. Blair Enns’ work on niching and differentiation is also invaluable for agencies seeking to position themselves as indispensable partners.
Additionally, many insightful blogs and podcasts cover negotiation and procurement strategies. I’ve included a curated list of resources in the presentation deck, which I’d happily share with anyone interested. These materials can help agencies refine their skills and adopt a more strategic approach to securing profitable deals.
