Negotiation is the give-and-take over price, terms, and scope that happens near the end of a deal. It is the account executive's or closer's job, not the SDR's — the SDR's role ends at the booked meeting. A good negotiation trades concessions for commitments: a discount in exchange for a longer term, a smaller scope in exchange for a faster signature. A bad one gives away value to avoid conflict. The skill is in never giving something without getting something back.
In plain English
Negotiation is the final conversation where both sides decide the exact terms. The buyer wants a lower price; you want to protect the deal's commission and value. You don't win by refusing to budge — you win by knowing what you can give and what you need in return, and by keeping the conversation moving toward signature instead of a standoff.
Why it matters to you
As an entry-level SDR, negotiation is the one thing you should not do — if a prospect asks you for a discount, that's a handoff to the AE, not your call. But it matters because it's the next rung: the closer's craft you're heading toward is partly closing and partly negotiation. Watch how AEs do it, and you'll be ready when the deal-owning seat is yours.
For preparing, defending price, and holding your line as an AE, see Prepare for the Sales Negotiation.