Common Negotiating Mistakes

Sales Mastery, Sales Training
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In a business-to-business environment negotiating can be everything from a simple, one issue “give and take” to a very complex process requiring multiple meetings.  Since most salespeople seldom enter “formal” negotiations, the intent here is to provide you with some basic negotiating tactics that will help you level the playing field.

The biggest barrier to success is that most salespeople are woefully unprepared to negotiate, since they are too emotionally involved in the outcome.  They simply want the business too badly to be objective.  Here are a few common negotiating mistakes that salespeople make.

  • Getting emotionally involved. Avoid statements like, “We’d really like to get this done,” as it indicates a willingness to do most anything to get the prospect to buy, and the smart prospect will try to see how far you actually will go.
  • Making unilateral concessions. A unilateral concession is agreeing to a prospect’s request too quickly, without asking for anything in return.  It demonstrates inexperience, and sends the message that you are willing to give in easily, encouraging the other party to ask for more concessions.
  • Not understanding the prospect’s pain and his alternatives. This is your “ace in the hole” and without it you are defenseless.  The more you understand about the prospect’s need to get something done and his options, the more leverage you have.
  • Talking too much. When you are monopolizing the conversation it’s impossible to “read” the other party and learn what the real motivators are.  You’re giving information, not receiving it.  Falling into this trap is a sure way to lose.  Remember the 70/30 rule.
  • Not understanding your own objectives clearly. Failure to have worked out, in advance, your list of primary (best case) and secondary (fall back) objectives will create confusion and indecision for you.  If you aren’t crystal clear on what your objectives are, you’ll just end up winging it.  This is a certain path to disaster.
  • Not understanding the buyer’s tactics. These include:
    • playing one supplier off against the other (”ABC Company can do it for me at this price. Can you beat that?”)
    • the “flinch” (“Wow. That’s really expensive!”) which immediately puts the salesperson on the defensive and encourages discounting
    • getting the salesperson to make the first offer, then negotiating from that point, and
    • splitting the difference

All these tactics are designed to give the other party the upper hand.  The successful negotiator will avoid all of these mistakes.

Self-Study Assignment:  How many of the above mistakes do you make when you are negotiating with a prospect or customer?  How do these mistakes impact your ability to be successful?  Make a commitment to doing a better job the next time you have to negotiate something.