Negotiations are an integral part of life, regardless of your profession. Almost everyone engages in them, whether for work or personal reasons.
For example, you might need to negotiate the terms of your employment contract or reach an agreement with your colleagues during a conference. If you’re running a business, you might need to negotiate a price with a vendor before making a large purchase. Even buying a car or a house involves some level of bargaining. Hence, learning how to negotiate effectively is a must.
Of course, conducting an effective negotiation takes some time and effort. You’ll need to plan well for one to reach your desired outcomes. That said, negotiations can go sideways if you’re not careful. There are several mistakes that many negotiators—both seasoned and novice ones alike—often make. Though seemingly small, these errors can be detrimental to the success of a deal. That’s why it’s so important to be aware of these pitfalls to avoid them.
To learn more, below are four common mistakes that can occur when you’re making a deal:
Failing to Make the Necessary Preparations
Planning is the key to success in many situations, and negotiations are no exception. Often, people tend to dive headlong into negotiation before thoroughly preparing for it. This approach can be fatal, as failing to plan may cause you to make a bad deal.
Even if you know what you want from a negotiation, you still need to review other factors that will affect how well the process will go. Taking the time to prepare can help you make rational decisions and boost your confidence.
Below are a few things to consider when preparing for your negotiation:
BATNA (Best Alternative to Negotiated Agreement)
A BATNA is your next best alternative when you’re unable to get what you want from a negotiation. Essentially, it’s the least of the favourable outcomes or the lowest amount you are willing to accept that the other party is willing to grant. By deciding on a BATNA, you can keep your options open and land a better deal, even if you don’t get the exact desired result.
Walk-Away Point
As the name suggests, a walk-away point is when you decide to walk away from a negotiation. Determining this moment involves listing down the objectives you need to achieve (your must-haves) and those you want to achieve (your nice-to-haves), then enumerating offers that could stop you from reaching these objectives. Every time the other party mentions these offers; you may take it as an opportunity to consider declining a deal.
Cross-Cultural Negotiations
If you’re negotiating with someone who has a different cultural background, you’ll need to research potential cultural differences. Remember, not everyone will want the same things or communicate the same way. The other party may practise different norms from yours, so do be sure to learn what to avoid based on their nationality or cultural context.
Adopting a Win-Lose Mindset
Some people tend to adopt a “win-lose” mindset when conducting their negotiations. Referred to by some as “distributive negotiation,” which entails that only one party can benefit from a deal.
However, distributive negotiation is usually untrue, as the most effective negotiations are those where both parties can reach a solution that suits their interests. When negotiating, it is always best to collaborate rather than compete. This approach is called “integrative negotiation,” where parties adopt a win-win mentality.
Rather than bully other parties by making unreasonable demands and using coercive techniques, negotiators should focus on establishing a good rapport with the other party. When negotiating, actively listen to the other party. It promotes trust and transparency, encouraging the other party to discuss their perspective. By being open to their interests, you may find new and valuable opportunities you otherwise would have missed.
Letting Strong Emotions Take Control
Tensions may arise during a negotiation, and as a result, emotions can escalate depending on the intensity of a discussion. While it’s natural to feel angry, upset, or anxious during these situations, do be sure to keep these emotions in check. Intense feelings may prevent you from making rational choices and could cause you to act out in distasteful ways.
Should your negotiations become heated, try to call for a break. Use this time to calm down, then regroup to discuss any concerns you or the other party might have.
Practising Poor Ethics
Regardless of how much you want something achieving it through unethical means is never justifiable. Practising poor ethics in a negotiation can lead to dire and long-term consequences. Even if you benefit from it in the short term, it’s likely to backfire somewhere down the road. Acts like lying and deceiving can severely tarnish your reputation. As a result, other parties are likely to avoid engaging with you since they view you as an untrustworthy person.
While the negotiation pitfalls mentioned above may seem intimidating, they’re easy to prevent. Preparing in advance, adopting the right mindset, keeping calm, and exhibiting integrity, will help you turn any deal into a great one.
Become more motivated and confident. Contact us today.