Over the course of my career, I have been involved in hundreds—if not thousands—of negotiations. Some involved multimillion-dollar agreements, while others focused on something as basic as the cost of a product, a promotional allowance, delivery terms, or who was responsible for a particular expense.

My years in the convenience-store industry taught me one thing very quickly: almost everything is negotiable.

At Clark Retail Enterprises and White Hen Pantry, where we operated roughly 1,400 convenience stores, negotiation was part of everyday business. Whether working with beverage companies, foodservice suppliers, equipment manufacturers, contractors, landlords, distributors, or service providers, the objective was never simply to beat the other side on price. The objective was to create an agreement that made economic sense while maintaining a relationship that could continue to produce value.

That distinction is important.

Today, the U.S. convenience-store industry generates enormous volume. According to NACS, convenience stores produced $817.5 billion in total sales in 2025, including $341.2 billion in in-store sales. The industry operates nearly 152,000 stores and handles approximately 160 million customer transactions every day.  

With numbers like those, seemingly small negotiations can have enormous financial consequences.

Consider a supplier negotiation that reduces product cost by just 2%. Across hundreds or thousands of stores and millions of units, that improvement can quickly become significant. But price is only one piece of the negotiation. Freight, payment terms, rebates, promotional funding, equipment, service levels, warranties, delivery frequency, minimum orders, exclusivity and price protection can sometimes be worth more than another percentage point off the invoice.

Preparation Is Where Negotiations Are Won

I have always believed that the best negotiators do much of their work before they ever sit down at the table. Know what you want. Know what you are willing to give up. Understand the economics of the agreement and, whenever possible, understand what the other party needs from the relationship.

In convenience retail, suppliers frequently want more than an order. They may want additional locations, better shelf positioning, greater menu penetration, preferred-supplier status or a commitment to growth. Those things have value. That means you should enter the discussion knowing your must-haves, nice-to-haves and walk-away points.

Stay Calm

Negotiations can become emotional, particularly when a lot of money is involved. Getting angry rarely improves your position.  Stay focused on the facts. If someone throws out a number or condition you don’t like, you don’t have to immediately react. Ask questions. Understand how they arrived at it. Sometimes silence is one of the most effective negotiating tools available.

Listen Actively

One of the biggest mistakes people make is spending the entire negotiation thinking about what they are going to say next.

Listen instead.

The other party will frequently tell you what is important to them. If a supplier cannot move further on product cost, perhaps they can provide better freight terms, extended payment terms, rebates, marketing dollars, training or equipment. Research into purchasing and supply management reinforces the importance of bargaining as a core supplier-management activity rather than treating negotiation as simply a one-time price discussion.  

Express Yourself Clearly

Ambiguity is the enemy of a good agreement. Clearly explain what you need, why you need it and what the business opportunity could mean for both parties. Don’t assume the other side understands your expectations. And don’t negotiate simply for the sake of negotiating. There should be a business reason behind your request.

Seek a Resolution

The goal isn’t necessarily to “win.” If you destroy the economics for your supplier, you may eventually create problems for yourself. You need suppliers who make money, invest in their businesses, provide dependable service and want to grow with you.

This is particularly important in today’s c-store environment. Foodservice now represents 28.5% of in-store sales but 38.9% of in-store gross profit dollars. At the same time, direct store operating expenses increased 4.2% in 2025 and card fees reached a record $21.3 billion.   Those pressures make strong supplier relationships—and disciplined negotiations—even more important.

Choose the Right Time and Place

Not every disagreement needs to be resolved immediately. Sometimes the smartest negotiating move is to stop, gather additional information and reconvene. Difficult conversations are generally more productive when both parties have the necessary information, and the right people are involved.

Be Open to Solutions

Finally, don’t become so committed to your original position that you miss a better solution. Some of the best agreements I’ve negotiated ended differently than I originally expected. Both sides brought ideas to the table, challenged assumptions and ultimately found an arrangement that worked better.

After more than 30 years working across convenience retail, restaurants, merchandising, marketing and supplier management, my view of negotiation has become fairly simple:

Be prepared. Stay calm. Listen. Know your numbers. Clearly communicate what you need. And look for an agreement that creates value for both sides.

Because the goal isn’t simply to resolve today’s negotiation.

The goal is to create a relationship that makes tomorrow’s negotiation easier.

Want more ideas?  For more information on Gray Cat Learning Series, visit: https://www.graycatenterprises.com/gray-cat-learning-series