Strong brands are monopolists – their customers cannot switch to competitor brands. This applies even though similar products are usually available, as the alternative product cannot attain the mystique of a successful brand. Manufacturers of these brands are fully aware of this, of course, so they defend their interests with confidence. Buyers from businesses who want to negotiate successfully need to prepare very thoroughly and base their approach on partnership.
Negotiating with strong brands can be challenging, but it’s not in the interests of either the retailer or the supplier to have empty shelves. If negotiations fall through, both sides lose. Negotiators who bear this in mind can act more effectively and ultimately find viable compromises. It’s important to prepare especially thoroughly and carefully for negotiations with teams representing strong brands.
It’s important to prepare especially thoroughly and carefully for negotiations with teams representing strong brands.
The negotiating strategy is based on an in-depth supplier analysis and a Total Cost of Ownership (TCO) review. In addition to sales figures, other factors for consideration include joint advertising activities and the long-term quality of the collaboration. The TCO analysis enables you to formulate realistic negotiation objectives and identify potential win-win solutions. During the next stage, the procurement team develops arguments and counterarguments, assigns roles, and works out negotiation scenarios, escalation steps, and alternative plans.
Key Take-Aways: Negotiating with Strong Brands
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Thorough preparation is essential: Conduct in-depth supplier analysis, Total Cost of Ownership (TCO) review, and scenario planning to identify realistic objectives and win-win solutions.
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Follow the Harvard principles: Separate people from the problem, focus on interests not positions, invent options for mutual gain, and insist on objective criteria.
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Plan for contingencies: Define BATNA (Best Alternative to a Negotiated Agreement) and identify the ZOPA (Zone of Possible Agreement) to manage risks and maximize negotiation leverage.
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Foster partnership mindset: Regular, structured discussions and attractive framework conditions beyond pricing build long-term collaboration and strategic preference with brand suppliers.
The article is part of our magazine issue Achieving Cost Excellence.
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When negotiations succeed, it is rarely by chance. Their outcome is largely determined by thorough preparation from early alignment with internal stakeholders and clear business objectives to a solid understanding of the market and supplier landscape. Competitive dynamics, behavioral insights from psychology and game theory, and a company’s reputation all shape the room for maneuver at the negotiation table.
In an interview with Barry Nalebuff, Professor at Yale School of Management, negotiations are framed as a question of value creation rather than power, with cooperation and data-driven analysis enabling fairer, more sustainable outcomes.
Negotiations with strong brands require a partnership mindset and rigorous preparation. By focusing on shared interests, objective criteria, and long-term value creation rather than positional power, procurement teams can expand the zone of possible agreement and reach sustainable compromises where both sides benefit.
Successful cross-cultural negotiations require flexibility rather than fixed assumptions. Understanding local communication styles, decision-making norms, and the importance of relationships allows negotiators to build trust, avoid friction, and reach sustainable agreements across borders.
In an interview with negotiation expert Matthias Schranner, former crisis negotiator with the police and FBI, emotions are highlighted as a major barrier. Effective negotiators reduce pressure, focus on shared interests, and use clear, constructive questions to steer discussions away from conflict and toward sustainable, mutually beneficial agreements.
In an interview with Simone Hilbrig, Managing Director at Inverto, the focus is on how culture, courage, and inclusion drive sustainable success. Empowering people, challenging traditional structures, and embracing diversity strengthen leadership, improve performance, and enable more resilient business models.
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Authors
Laura Steinhoff
Principal
is a Principal at Inverto in Hamburg. She is an experienced buyer in the retail and consumer goods industry, advising customers from these sectors as part of comprehensive procurement optimization projects.