Many often consider negotiation an arduous task, as it involves having conversations with people, where both parties are doing their best to protect personal interests. Going over negotiations while maintaining relationships remains relevant to businesses and investments.
It hardly comes easy to conclude a negotiation that keeps both parties happy, while overlooking small processes may result in costly errors that could mar the negotiation process. The negotiation society, for instance, discusses the pitfalls to avoid, which can make the difference between a successful negotiation and a significant disagreement.
Here are seven common negotiation mistakes to avoid at all costs.
1. Failing to prepare:
Before going into a negotiation, ensure you have all your facts ready about the components of the deal. Prepare your facts on the other party beforehand and study the intricacies of the agreement. Ensure you have sound knowledge of your partner’s values, desires, and expectations before beginning negotiation.
The problem with not having an idea about these is that you may be taken unawares and may get less than you expect from the deal. It is also necessary so you can practice and perfect your argument beforehand.
2. Failing to build relationships:
When you go into a negotiation without building relationships first, a vital component of a successful negotiation is already missing- Trust. Building trust gives better insight into the other party’s interests and values.
It also makes your partner warm up to you and gives them the will to acquiesce to your demands. Failure to build relationships makes the negotiation process cold and unwelcoming. It creates unnecessary tension and strife.
3. Failing to listen:
Empathetic listening is critical in the negotiation process. It gives you an opportunity to understand the other party better. Furthermore, you can identify shared interests and positions. You may, however, miss vital information when negotiating, resulting in undesirable outcomes. Having excellent listening skills gives you the edge and shows that you are committed to the negotiation.
4. Showing extreme care:
What gives you strength as a negotiator is to know that you can back out of a deal without feeling beaten. When the other party understands your onus, you get better treatment and deal. If you make it seem like your existence depends on that deal, you are at the mercy of the other party. However, treat the negotiation with respect but do not show your vulnerability.
5. Showing excessive concern over price:
Most business negotiations are about money. However, there are more to deals than just slapping a price on it. If you go into making an agreement, concerned solely about either making the most money from it or reducing the cost to the barest minimum, you stand the risk of marring the whole negotiation process.
Instead of getting worked up about the money involved, come up with propositions on additional services, and other benefits.
6. Not considering a BATNA:
Before you go into a negotiation, you should know your Best Alternative To Negotiation Agreement. Having this in mind gives you the advantage to sign your best possible deal.
You know when to cut your losses and provide an option, the other party will be willing to agree. In the end, having a BATNA means your partner will most likely agree to your terms, as you have already forgone your first offering.
7. Hurriedly concluding deals:
Do not be in haste to sign papers. Take your time, not only to go through the terms but also to understand the agreement altogether. Take your time as well, before accepting a compromise. This will save you lots of trouble after you must have signed the deal.
Negotiation requires sufficient practice to become better. Occasionally, you’ll find yourself making these mistakes while negotiating. In those instances, do your best not to negotiate in a tensed atmosphere, take a break, drink water, crack a joke. In the end, not all negotiations will go as you planned.
Suck it up and move on. If you have made more compromises than you want, find out if you can call it off or follow through to the end. At least, you’ve learned a valuable lesson.
