There is a nice book by Gavin Kennedy "Everything is Negotiable". Your idea is proved in one of the chapters. Recommend to read it for everybody who is interested in business and wishes to learn about negotiation.

Roman Price commented:

Great post, the art of the deal is very important. I have learned over and over the extend of people skills for this reason.

Most people try to negotiate the best deal possible for themselves. Take it from me, if you take the guy's shirt off his back you have burned your own bridge. Business is long-term, share your shirt with him and you will both be clothed for a life-time to come.

Create lasting relationships both in your personal and business life, don't think about the deal at hand and invasion the deals down the road.

Works for me, just might work for you :)