Common Negotiation Mistakes (10)
Introduction
Everybody negotiates. It can vary from who goes through the door first through to terms of contract.
You need to be able to negotiate effectively.
Some mistakes and ways to handle
1. Failing to prepare (preparation demonstrate your knowledge so that you gain the respect of the other party; less likely to forget things if fully prepared; if in group negotiations need to decide who says what; understand what the other party are likely to say; be prepared to compromise.)
2. Not building relationships (need to build trust so that you gain an insight into background of their goals, ambitions, fears, etc; need to establish a good relationship early on; with a good relationship better able to handle the 'ups and downs' of negotiations)
3. Being afraid to offend (can be apprehensive about saying or doing the wrong thing, this is where relationship building is important; understand
"...difference between negotiating and arguing. Unlike an argument, we are each party makes a case for or against something, the aim of negotiation is for both sides to reach an agreement. As both parties want different things, you can only arrive at this point through discussion of what you are and are not prepared to do..."
MTCT, 2024a)
4. Not listening (being a good listener is part of being successful negotiator; this involves learning what the other person wants:
how well you listen as a major impact on your job effectiveness and on the quality of your relationship with other people..."
MTCT, 2024a
NB
"...- we listened to obtain information
- we listened to understand
- we listen for enjoyment
- we listened to learn..."
MTCT, 2024a
"...we only remember between 25% and 50% of what we hear..."
Edgar Dale as quoted by MTCT, 2024a
You hope the important parts are captured in your 25-50%
5. Not knowing your 'BATNA' (best alternative to a negotiated agreement) (it's about keeping your options open as will not always get what you want; it is an attractive alternativ.e)
6. Caring too much (need to keep your emotions in check so that able 'to walk away'; walking away can put you in a stronger bargaining position negotiations restart as the onus is on the other party improve their offer.)
7. Assuming something is non-negotiable (it is important that
"...Nothing is off the table in negotiation, and it pays to take your context into account. If you think of everything is negotiable, you'll have a lot more options..."
MTCT, 2024a)
8. Focusing on price (having a fixation on price, risk putting yourself and/or other party into a corner; price is only one aspect of the deal; it is more effective to focus on the non-price parts of the negotiation, eg exclusivity clause, additional services, etc)
9. Trying to win (expecting to win an outright, even if you're entering the negotiations with a position of strength, can be ineffective;
"...The most effective negotiation is where both sides leave the table feeling that they have gained something. They may not have everything they want, but they have enough for the deal to be worthwhile..."
MTCT, 2024a
Know when to stop negotiating and agree on a deal.)
10. Giving an ultimatum (this can reduce the scope of the negotiation, ie there is a reduced chance of finding a compromise; can be perceived as aggressive and domineering; better to set deadlines as a way to encourage others to reach a decision, or break a deadlock.
"...The downside is that it puts you under time pressure. The upside is that both parties are focused on reaching an agreement within the timeframe, which can speed up the process of finding a compromise..."
MTCT, 2024a
Summary
"...Effective negotiation requires preparation and a clear understanding of what both you and the other party want to achieve.
While you want to secure the best deal, negotiation is about compromise and reaching consensus rather than 'winning'.
Consider what alternatives to your original aim you'll be prepared to accept - including walking away from a deal - and to remember to steer clear of ultimatums..."
MTCT, 2024a
(for more detail, see elsewhere in the Knowledge Base)