No matter how experienced you are, mistakes in negotiations happen. Sometimes, they’re small, with little impact on the outcome—we walk away from the table too early with a deal that could have been better. But occasionally, we’re guilty of a major negotiation faux pas that becomes costly.
In the world of negotiations, these big and small negotiation mistakes are usually avoidable. That said, at Negotiations Ninja, we see the same ones occur over and over—all of which can be bypassed with training and practice.
On that note, let’s look at the most common negotiation mistakes across multiple industries:
Mistake 1: Asking For Too Little
The golden rule of negotiating: Ask for more than you expect to get. It’s the basics of negotiating, and yet, so few of us apply it into practice. Most often, we do this out of a fear of rejection or a desire to speed things up. But by settling for a lower offer, you could be leaving value on the table.
Starting with your bottom line leaves little, or no, wiggle room in negotiations. To avoid this pitfall, always ask for more than you expect so you have someplace to go when your opposition delivers a counteroffer.
Mistake 2: Not Preparing
Many people view negotiation as a gunslinger’s paradise where you can “just wing it,” but that attitude could leave you unsatisfied and embarrassed. Showing up to a negotiation feeling confident in your own opinion and desired outcome is important—but that’s only half the battle. A good negotiator understands that everyone’s goals are important and will impact the deal’s outcome.
When approaching a negotiation, look at the situation from all angles and consider what your best alternative outcome could be. To maximize returns, develop strong relationships, and create winning situations for all parties involved, ask questions to understand the other side’s desires, and have plans to negotiate with this information in mind. It’s also essential to know your walkaway point to maintain a rational head.
Mistake 3: Not Listening
Listen. Listen. Listen. This is the most common skill that negotiation pros say to master on the Negotiations Ninja Podcast. Don’t craft your response while someone is speaking. Don’t interrupt. Stop thinking about your dinner plans. Just shut your mouth and listen.
Listening is more than just hearing. When someone is presenting their point in a negotiation, make eye contact, lean in, and be able to paraphrase back what you heard to ensure you fully understand what’s being said. This not only improves how you appear in negotiations. It’ll help your position if you understand the other party’s point of view and goals.
Once you understand their stance, consider your response and ask for clarification if you missed anything. It is always better to ask questions than to make assumptions.
Mistake 4: Giving Ultimatums and Creating Competition
If you’ve approached the table intending to negotiate, the second you give an ultimatum, you’ve thrown your bargaining chips out the window. Ultimatums create adversarial and competitive atmospheres, often leading to negotiation breakdowns, where the other side becomes defensive, and no one is willing to budge.
To avoid ultimatums and hostile negotiations, approach the table with flexibility and a willingness to be creative. Work together collaboratively to find a solution that benefits both sides. Know your bottom line, but be flexible getting there.
Mistake 5: Not Being Able to Walk Away
The ultimate leverage in any negotiation is your ability to walk away from the table. Never put yourself in a position where you don’t have multiple alternatives to fall back on. By actively cultivating and maintaining these alternatives, you gain the upper hand in negotiations and empower yourself to confidently say “no” when needed.
Remember, choosing not to make a decision is, in itself, a decision to walk away from the opportunity. Even if alternatives aren’t immediately available, position yourself to avoid making rushed decisions under pressure. Give yourself the time and space to evaluate, and don’t let time constraints force you into unfavorable commitments.
Mistake 6: Signing Without Understanding
It may seem straightforward, but it’s easy to sign a contract without fully grasping the details. This happens more often than we think, but in negotiations, it can lead to unfavorable outcomes where you end up with less than you anticipated. Just because you’ve verbally agreed to something doesn’t mean that’s what’s written in the contract. Always take the time to thoroughly read and comprehend the terms before putting pen to paper.
When it comes time to sign, take your time. Review the contract carefully and ensure you fully understand all the terms. If anything is unclear, don’t hesitate to ask questions. Once you sign, you leave yourself little to no room to make changes.
Mistake 7: Letting Emotions Take the Wheel
Sure, emotions—both ours and our counterparts—can give us useful insight into how things are going, but letting them steer negotiations can send them off the rails. When emotions get too intense, they can cloud our judgment and influence our decisions.
To avoid letting anger, or any other big emotions take over, take a break when things begin to heat up. This will give everyone some space to cool down and come back with clear heads. When you come back together, talk through what happened to let everyone share their thoughts and concerns. This helps to reset the tone and move discussions forward.
Bonus Mistake: Not Taking Notes
If you’re not taking notes throughout the negotiation process, you’re likely to miss something. We all think we’ll remember every piece of information, but that’s almost never the case. Avoid missing the details and just take notes. You won’t regret it.
Avoid Negotiation Mistakes: Call The Negotiations Ninja
Avoid costly mistakes in negotiations by leveraging expert guidance. Professional training equips you to navigate common pitfalls and maximize your negotiation outcomes.
Before your next negotiation, visit Negotiations Ninja to gain access to our essential negotiation success program. Contact us for more information.