Avoid These Pitfalls When Closing a Deal 

All effective managers must be able to bargain, whether it’s to work out a contract’s conditions, win people over in a meeting, or set deadlines with their teams. 

If you aren’t good at negotiating, your career will suffer. You might, for instance, lose business or the respect of your coworkers. Or, you can struggle to resolve issues that stronger negotiators would easily resolve. 

This article examines 10 typical negotiation errors and discusses how to avoid them. The errors are examined in no particular sequence. 

Mistake 1: Not Preparing 

Even if you know exactly what you want out of a negotiation, you still need to plan and practice your arguments thoroughly. 

You feel more confident when you are prepared, which is crucial in any negotiation. The other side will take you seriously if you can show that you are knowledgeable about the issue. Additionally, you’ll be less likely to overlook anything if you’re well-prepared. Including everything in your negotiation is crucial because it may be quite challenging to add additional demands after the fact. 

Decide who will say what before you start any group talks by sitting down with your team. Utilizing role-playing, practice your “pitch” and make sure your arguments are clear. Talk about what the opposing side is likely to say and what you’re willing to give up. Make a note of the meeting and bring your notes. 

Mistake 2: Failing to Develop Relationships 

There may be times when you must enter a negotiation “cold,” without knowing the other side’s preferences. But if you can, attempt to build a rapport with the other side. Building trust through simple conversation can help you learn more about a person’s objectives, aspirations, and even concerns regarding the negotiation process. 

There may be some difficult conversations to come, but if you build a strong rapport right away, you have a better chance of coming to a satisfactory conclusion. 

Mistake 3: Fear of Offending 

It can be challenging to try to negotiate the best price for yourself, your group, or your company. You can be worried about speaking poorly, making a hasty decision, or haggling. Perhaps you find it difficult or embarrassing to reject other people’s ideas, especially if your leadership style is consensus-based rather than directive. 

You can deal with these emotions by keeping in mind that there is a distinction between bargaining and arguing. The goal of negotiation, as opposed to an argument where each party presents their case for or against a position, is for both parties to come to a compromise. You can only reach this conclusion through a conversation about what you are and are not prepared to do because both partners have different priorities. It’s just a necessary step in the process. 

Mistake 4: Failure to Listen 

In order to negotiate successfully, you must pay attention to the other party. Finding points of agreement will be more challenging if you talk over him or ignore what he has to say. You will probably also say, “Put his back up!” 

You can find out what the other person wants, determine whether you have any interests, and determine how far away your perspectives are when you have good listening abilities. To comprehend her intentions and interests, use active listening and empathy. 

Mistake 5: Not Knowing Your “BATNA” 

“BATNA” (which stands for “Best Alternative to a Negotiated Agreement”) 

In essence, even if your goal in negotiations is to achieve your desired outcome, you also need to determine your best possible alternative. This implies that you are aware of when it is wise to give up and go away. 

Before starting negotiations, decide on your BATNA and understand what a “good” result would be, even if you didn’t obtain everything you wanted. 

Because you’ve left your choices open, having a clear BATNA allows you to push harder during negotiations and perhaps obtain a better outcome than you had anticipated. 

Mistake 6: Excessive concern 

You must be concerned about the negotiation’s outcome, but not to the point where you are unable to walk away and end up making a poor choice. In other words, control your emotions, approach the process like a game, and choose when to stop. 

You’ll also be in a better position to negotiate should the other side decide to try again if you can walk away from the negotiation. This is because he will have to make his offer better. 

Mistake 7: Assuming something is indisputable. 

Consider the following case: A top team has inked a multi-million dollar, four-year contract with a talented basketball player. It’s a solid pact with pricey penalty break clauses that will keep him at the club for the duration of the contract, along with his potential earnings and sponsorship opportunities. 

However, he falters in his first campaign, and a rival team expresses interest in signing him. The penalty break condition in the “cast-iron” contract between his club and him is suddenly a subject for negotiation. It’s not an easy trade to close, but everyone is thrilled when he joins a new team the following season. 

This illustration demonstrates that nothing is off the table in negotiations and that it is beneficial to consider your surroundings. You’ll have a lot more options if you approach everything as negotiable! 

Mistake 8: Concentrating on Cost 

Money is a common topic during business talks. However, if you enter a negotiating session fixated on price – because you want to lower it or protect it – you run the risk of pushing either yourself or the other party into a corner. 

Of course, price matters, but it’s frequently only one component of a transaction. Think of any other issues you could negotiate. You could, for instance, decide to add an exclusivity clause, more services, or better contract conditions. 

Mistake 9: Trying to “Win.” 

Even if you are starting the negotiation from a position of strength, coming to an agreement may be more challenging if you anticipate winning outright. 

The most successful negotiations are those in which both parties feel as though they have acquired something from the discussion. Even though they may not have gotten everything they desired, the deal was nevertheless profitable. 

It’s critical to avoid being greedy. If you play “hardball” and imperil future negotiations, you could jeopardize a deal that both of you can agree on if the other party makes a concession. To put it another way, know when to give in to pressure! 

For advice on how to reach a just settlement during negotiations, read our article on Win-Win Negotiation. 

Mistake 10: issuing a deadline 

No more conversation is possible if your state in your first offer, “This is our best and last offer.” 

This kind of ultimatum forces the opposing party into a corner, making the possibility of reaching a compromise much slimmer. Although it’s occasionally important to use this tactic when the opposing party is trying to “chip away” at your position, it might come out as arrogant and overbearing. 

However, understand the distinction between a deadline and an ultimatum. Expert negotiators frequently impose fictitious deadlines to pressure the opposing party into making a choice or ending a standstill. 

The drawback is that you are under time constraints. The advantage is that finding a compromise can go more quickly because everyone is focused on getting something done by the deadline. 

Major Points 

Preparation and a clear knowledge of what you and the other side want to accomplish are essential for effective negotiation. 

Negotiation is not about “winning,” even though you want to get the greatest deal; it’s about compromise and reaching an agreement. 

Remember to avoid ultimatums and think about what alternatives to your initial goal you’d be willing to accept, such as walking away from a contract.

If you found this article insightful, you might also be interested in exploring these topics further. Here are five articles that could capture your attention:

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