Commercial negotiation is an essential communication process for every sales professional. A well-conducted negotiation not only helps to close favorable deals but also builds lasting relationships with clients. However, several common mistakes can jeopardize a negotiation — even when it seems to be going well. Here are 10 mistakes to avoid in order to maximize your chances of success and become a great negotiator.
1. Not preparing sufficiently for the negotiation
One of the most common mistakes is entering a negotiation without adequate preparation. By underestimating the importance of information, you risk not grasping the stakes or missing out on opportunities. Before every negotiation, it is essential to understand the client’s needs, the strengths and weaknesses of your offer, and any possible alternatives. Preparation not only boosts your confidence but also enables you to better anticipate your counterpart’s objections.
Success in negotiation is 80% preparation and 20% improvisation.
Harvey Mackay, author and negotiation expert
2. Imposing your conditions without listening to the other party
Commercial negotiation is not a monologue but a dialogue. Too often, negotiators focus solely on their own objectives and forget to listen to their counterpart. Such a rigid attitude can quickly lead to a stalemate. It is crucial to listen actively, ask questions, and strive to understand the other party’s expectations and needs. By demonstrating attentiveness and flexibility, you increase your chances of finding common ground.
70% of negotiations fail due to insufficient preparation according to a study by the Harvard Business Review.
3. Not setting clear limits
Entering a negotiation without clearly defining your limits is risky and one of the 10 mistakes to avoid in commercial negotiation. It is crucial to know what you are willing to accept and what you cannot concede. Without these boundaries, you might end up accepting unfavorable terms just to close a deal. Before negotiating, identify your breaking points and potential concessions to avoid making poor decisions under pressure.
4. Lacking flexibility in discussions
While setting limits is important, being too rigid can hurt the negotiation. An uncompromising stance can lead to a breakdown in discussions or a rejection of the offer. It is essential to remain open to compromises and alternative solutions. Flexibility is a major asset in any successful negotiation.
5. Failing to properly value your offer
Another common pitfall is not effectively highlighting the value of your product or service. If you do not clearly communicate the advantages and benefits, the other party may undervalue your offer. During the negotiation, emphasize what differentiates your product and why it meets the client’s needs. A clear presentation of your proposition will strengthen your position.
82% of sales professionals believe they are not sufficiently prepared to handle complex negotiation situations.
6. Focusing solely on price
Reducing a negotiation to a mere discussion about price is a classic mistake. Although price is a key factor, other elements—such as quality, after-sales service, or delivery times—can be just as important. Broadening the discussion to include the overall proposal allows you to find mutually beneficial compromises and avoid getting stuck in a price war.
7. Underestimating objections
Objections are almost inevitable in a commercial negotiation. Ignoring them or dismissing them too quickly is a mistake. It is important to understand your counterpart’s real concerns and address them with solid arguments. Taking the time to handle objections shows that you respect the other party’s viewpoints and are ready to find solutions.
Examples of objections and adapted responses:
8. Showing too much eagerness to close the deal
In the heat of the moment, it can be tempting to rush to close a negotiation in order to avoid losing the client. However, appearing overly eager can weaken your position and lead you to make excessive concessions. It is important to remain composed and balance patience with determination. A successful negotiation takes time.
9. Neglecting long-term relationships
A commercial negotiation should not be viewed solely as a one-off transaction but as an opportunity to build a lasting relationship. By focusing solely on immediate gains at the expense of the relationship with the client, you risk missing out on future opportunities. Adopt a win-win approach that satisfies both parties and lays the groundwork for long-term collaboration.
10. Forgetting to formalize the agreement
Finally, one of the major mistakes in commercial negotiation is failing to properly formalize the agreement once negotiations are concluded. A verbal or informal agreement may lead to misunderstandings or future disputes. It is imperative to draft a contract or document that clearly outlines the terms and conditions of the agreement to avoid any confusion.
Improve your negotiation skills even further by understanding the different stages of the negotiation process and mastering them. Click the link below to explore our training on becoming a better negotiator.
