Good morning and welcome to The Closer, the newsletter all about deals. Today’s edition is short and sharp — one tactic, backed by research, to help you negotiate smarter. No headlines, no noise — just a Nugget you can deploy by lunchtime.
If you have a friend trying to work something out – a big deal, a tricky negotiation – please forward this to them.
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LOSS FRAMING
EFFECTS
Closer Tactic #63 • Deal Psychology
Most people focus on gains.
Behavioral masters leverage loss aversion.
The Nugget
People hate losing something more than they like gaining the same thing.
When Netflix was negotiating content deals in the early streaming days, they would frame offers around what studios would "lose" by not partnering with them—lost revenue from cord-cutters, lost data about viewing habits, lost relationships with younger demographics. This loss framing was more effective than emphasizing the gains from partnership, leading to better licensing terms.
How to Deploy
• Frame your offer around what they'll lose by saying no
• Highlight opportunity costs of their alternatives
• Use what you're giving up language instead of "what you'll gain"
Avoid overusing loss framing—it can create negative emotions that hurt relationships.
Takeaway
The fear of losing beats the hope of gaining every time.
Reply with your best loss framing example—
we might feature you (and send a mug).