Seven Negotiation Mistakes To Avoid

Seven Negotiation Mistakes To Avoid

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A fine line must be drawn when negotiating. As a sales representative, you must walk a fine line between serving your company's interests and assisting your prospect in finding a solution that works for them. By the time you've reached the sales process negotiation stage, you and your prospect share the same objectives: getting your business's offering into their hands. It's a team effort, thus to find the best solution, you should cooperate, not argue, with your customer.

This does not imply that your prospects are powerless. Even if negotiation isn't a battle, you may still win it if you can establish and hold a firm position throughout the discussion and come to a mutually beneficial agreement with your consumer.

But since things don't always work out well in negotiations, you need to steer clear of the following troublesome phrases if you want to keep your morale high and still reach a solution that benefits all parties.


1. "This Call Ought To Be Over Pretty Soon."

Assuring your prospect that the negotiation will move quickly and easily won't make them feel more comfortable; on the contrary, it will. People feel more at ease during negotiations when they believe they have plenty of time to discuss the terms and make a decision.

They will become more watchful and agitated if they sense that time is running out. You don't want that because your prospect will start making safe decisions once they are in risk-aversion mode. Start by stating, "We've got [X minutes] on the agenda," if you want your buyer to stay open. I believe that's all the time we'll need, but if not, I'm delighted to continue the conversation.


2. "Between."

What will happen if you tell your prospect that the pricing range is between $12,500 and $15,000? They'll demand $12,500 in return. Furthermore, the lower price "anchors" your prospect's view of the worth of your goods. If you mention $12,500, they may have previously believed $15,000 was a reasonable price, but the lower number may now look excessive.


3. "What About Lowering The Price?"

With one major exception, you won't always be able to offer your goods for full price, and that's okay. Make sure you are receiving anything in exchange if you are offering a price reduction. They'll sign today, right? Do they intend to sign a lengthier contract?

Remember that your initial move should never be to provide a discount. Don't let your eagerness to close the sale cause you to lose sight of the value of your product, which is priced as it is for a reason.

Is there another, smaller concession you may make to entice the potential customer to sign? Before you lower the price, make sure you've tried all the other free offers. Customers believe that price and value are directly related, therefore lowering the price too soon may unintentionally reduce the perceived worth of your product.


4. "I Make All Decisions."

Even though you are the final approver, it might not make sense to use your position to demonstrate your strength. In high-stakes agreements, having an exit if you need one comes in handy when you keep your approval power to yourself.

Especially if you've already made a number of concessions, you may occasionally need to take a break from the negotiation to assess the offer in front of you. Are you and your business actually comfortable with these terms? You can have the time you need to make a considered decision by informing your buyer that you need to run new requests by a different stakeholder.


5. "Let's Figure Out The Specifics Later."

There's a reason why they say the devil is in the details. Without agreeing to a statement of work, you wouldn't engage a builder to construct your home. Similarly to this, before agreeing to a price, you should know exactly what your prospect anticipates from you.


6. "I Have To Finish This Right Away."

Perhaps today—the last day of the month—is when you need to close this one last deal to meet your quota. All of us have been there. But what if you were to say out loud that you must conclude this business right now, rather than tomorrow or next week? You'll be on the ropes with your prospect.

Your prospect won't have to make as many concessions as they might have otherwise if you make it clear that you're under time constraints to complete the transaction. At the buzzer, they might even try to smuggle in a few bold requests. After all, why shouldn't they pressure you to drop your price or provide extra services for free if they know you're anxious to sign a deal before midnight?

However, this does not imply that displaying urgency is always undesirable. For instance, the prospect may have mentioned a deadline by which they must have a plan in place. The salesperson can determine the best contract sign date by working backward from that date and taking installation and training into account. What if that day is right now? It's time to up the heat.


7. "Let's Split The Difference."

Splitting the difference will result in a significant margin reduction. It also drastically reduces the perceived value of your product. Try to find a different way to settle the dispute. By giving your prospect the impression that they have "won" something and making you appear more reasonable, even a minor compromise can help you end a stand-off.

To prevent them from having to pay for the same level of assistance, you might be able to assist them with data migration, promote the product to end customers, or even personally instruct them on how to use it. Be imaginative. There are other directions you might take in this situation other than compromising your stance.


Negotiations can be finicky, difficult affairs, and they run the risk of going south if you aren't methodical and careful in your approach. The words and phrases on this list have the ability to damage your credibility and unfairly disadvantage you in these types of interactions. So be sure to always avoid them when you're bargaining, no matter what.