10 Negotiation Skills to Boost Your Beer Sales

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Sales negotiation is a crucial skill in the craft beer market, a process that goes well beyond setting prices and closing contracts.

In an increasingly competitive market, craft brewers need solid negotiation skills to secure deals that work in their favor.

Negotiation in the beer world

Sales negotiation in the craft beer world involves conversations between brewers and distributors, retailers or even consumers directly.

These conversations can cover anything from distribution terms to shelf placement or participation in events.

Why negotiation matters

In the craft beer market, negotiation is essential for reaching agreements that benefit both sides.

It’s not just about setting prices, but about building lasting relationships with distributors and retailers.

Negotiations let both parties communicate constructively, creating room for trust and ongoing collaboration.

1. Prepare ahead of time

Before negotiating, brewers should understand the market, know the profile of their potential partners and be clear on the alternatives available to them.

In negotiation, that alternative has a name of its own, BATNA (best alternative to a negotiated agreement), a concept popularized by Roger Fisher and William Ury in Getting to Yes (1981). If you know, for example, that another distributor in your area is willing to carry your beers, you’ll negotiate with more confidence and know exactly when it makes sense to walk away from the table.

2. Don’t open the conversation

Instead of opening the conversation on terms and prices, let the other side go first. This gives you valuable insight into their expectations and position.

Listening first and speaking second is key to understanding what the other side needs.

This tactic has its nuances. Research on anchoring shows that the first offer tends to set the range of the negotiation and that whoever makes it often comes out ahead, as long as they know market prices well (Galinsky and Mussweiler, 2001). That’s why letting the other side open works best when you lack enough information, for example, about what a bar pays other breweries for a keg.

3. Decide on your concessions in advance

You need to be clear about the concessions you’re willing to make, whether on price, volume or distribution terms. This keeps you from agreeing to rushed commitments in the middle of the negotiation.

In beer, the usual concessions go beyond the price per case or per keg, and include the minimum order, payment terms, exclusivity in a territory or the loan of draft equipment.

4. Stay away from ranges

Avoid offering wide ranges, especially when discussing prices. Give specific figures to prevent misunderstandings. Transparency is crucial for building trust.

A study published in the Journal of Experimental Social Psychology found that offers with precise figures, rather than round ones, draw more moderate counteroffers, because the other side assumes whoever makes them knows the value of what they’re selling (Mason et al., 2013).

5. Don’t split the difference

Instead of splitting the difference, look at other forms of value. Splitting the difference means settling at the midpoint between two figures, which tends to reward whoever started with the most extreme demand. Offering steep discounts can hurt your financial viability. Explore options such as add-ons or promotions.

6. Keep the conversation light

Even though negotiations can get intense, it’s important to keep a friendly tone. Goodwill helps build long-term relationships and heads off potential resentment.

7. Don’t talk only about money

Beer negotiation isn’t only about price. Consider offering added value, such as joint promotions or events, to balance out financial concessions. At a bar, that could mean a tasting with the brewer, point-of-sale materials or a rotating tap with special releases.

8. Put the terms in writing at the right time

Hold off on written commitments until both parties have agreed on the terms verbally. This ensures the paperwork accurately reflects what was discussed.

9. Stay calm

Keeping your cool during negotiations reinforces your image as a reliable, consultative partner. Trust is essential for building solid relationships.

10. Walking away is always an option

If the demands are unreasonable or simply not profitable, walking away is a valid option. Not every negotiation pays off, and leaving an unworkable deal behind can be the smartest move.

Conclusion

Negotiation skills are essential in the competitive craft beer market.

Preparation, empathy and the ability to offer value beyond price are key to striking mutually beneficial deals and building lasting relationships.

Frequently Asked Questions (FAQ)

1. What is BATNA in a beer negotiation?

It’s the best alternative to a negotiated agreement, in other words, what you’ll do if you don’t reach a deal, such as selling to another distributor or directly in your taproom. Knowing it tells you when it makes sense to walk away from the table.

2. Should you make the first offer when negotiating with a distributor?

It depends on how well you know the market. The first offer works as an anchor and usually favors whoever makes it if they know prices well. If you lack information, it’s better to let the other side open.

3. Why use precise figures instead of ranges?

A range invites the other side to settle on whichever end suits them best. An exact figure signals that you know the value of your product and usually draws more moderate counteroffers.

4. What can you offer besides price?

Minimum orders, payment terms, territory exclusivity, loaned draft systems, tastings with the brewer, point-of-sale materials or special releases for a rotating tap.

Bibliography

1. Roger Fisher and William Ury, Getting to Yes. Negotiating Agreement Without Giving In, Houghton Mifflin, 1981
2. Adam D. Galinsky and Thomas Mussweiler, First offers as anchors, the role of perspective-taking and negotiator focus, Journal of Personality and Social Psychology 81, 2001
3. Malia F. Mason et al., Precise offers are potent anchors, Journal of Experimental Social Psychology 49, 2013

Recommended

• How to Build a Successful Brand When Starting Out in the Craft Beer Industry
• Is the Craft Beer Revolution Over? Inflation, Prices and Market Saturation