Erik Sherman, Contributor, Inc.com wrote a good article,
He reconstructed an old e-mail exchange between Steve Jobs and James Murdoch about ebook prices between Apple and HarperCollins illustrates how savvy negotiation works.
1. Understand the importance of the negotiation. According to one of the emails, Steve Jobs got on the phone with Murdoch right away. Jobs was a busy man, but he knew that some deals are critical.
2. Show that you understand the context and why your proposition is better. Jobs knew, as did everyone in the publishing industry, that Amazon was driving much of the ebook business. Murdoch verified that Amazon paid $13 wholesale for an ebook title and sold it for $9.99–a loss, but Amazon wanted market share.
3. Show both kinds of value. Jobs showed two kinds of value in his email exchange. One was positive value–what HarperCollins would get by working with Apple–and the other was negative, or what HarperCollins would lose by not working with Apple.
4. Lay out the reality. The Jobs coup de grâce relates to the first point. When Murdoch shows signs of compromise, while trying, as Jobs did, to show positive and negative benefits to Apple, Jobs lays out a stark reality:
5. Play the emotion. One of the biggest mistakes that businesspeople make is to assume that the process is a rational and logical one. But negotiation is almost always an emotional play.