5 Things to Avoid During Negotiations to Win a Deal

Most people negotiate every day, in both private life and business environments. It’s a common aspect of human relationships, aiming to understand others’ needs, reach a conclusion, and find a solution that satisfies both sides. In business, negotiation is essential in the supplier-customer relationship. Whether you’re finalizing a contract, discussing terms with a supplier, or closing a deal with a client.

Effective negotiation can lead to mutually beneficial outcomes. Still there are certain mistakes and behavior patterns that can potentially derail the process and hinder success. In this article, we’ll explore five common mistakes to avoid during the negotiation process to ensure a smooth and successful result.

1. Failure to understand customers’ needs

One of the biggest mistakes in negotiation is communicating with the customer without understanding their requirements. Failing to research the other party, gather necessary feedback, and define your objectives can make it difficult to navigate the negotiation effectively. To avoid this, take the time to gather relevant information and develop a clear strategy before engaging in negotiations. According to LinkedIn Research, 76% of top-performing sales representatives, do a thorough research before contacting prospects.

In Dealia, you can gather all the necessary information through the form on your website. Customers can request a quote by clicking the quote button and completing the form. You can design your forms and assign them to your items. Once your customer requests for quote, you should already have all the necessary data from your potential customers to prepare a solid quote. Even if you don’t, you can always message the customer directly to ask more questions and better understand their needs.

2. Ignoring customers’ feedback

Unfortunately, many negotiators focus solely on making their point and achieving their satisfactory price level goals and conditions. Once the negotiation is in progress, they fail to take into consideration the customer’s feedback and understand their perspective. To avoid this, you need to be fully engaged with the other party’s statements, asking clarifying questions, and demonstrating empathy towards their position.

Once you send your first quote in the Dealia negotiation panel, your customer will receive an email with a link to their own negotiation panel. There they will be able to view the quote from you and have the option to accept, reject, or counteroffer.

Once a customer rejects your offer, they will be prompted to give feedback so you know why they didn’t like your offer. Then you will have a chance to adjust the offer to meet the needs of your customer. The same is true for counteroffers. It provides you with information on what is the most suitable price for your customer, so you can adjust your offer accordingly. It all brings you closer to building a rapport and finding common ground.

3. Being too aggressive

It’s essential to be assertive during negotiations, but being too confrontational can create unnecessary tension and have negative effects. Adopting a win-at-all-costs mentality can often lead to damaged relationships. Instead, try to be collaborative and creative in finding the right solutions. Aim to come to an agreement and add value for everyone involved. Maintain a respectful and professional dialogue throughout the negotiation process to build trust and strong business relationships.

In Dealia, it’s advisable to always support your offer with a professional message explaining shortly the reason for the offer price and conditions involved. Every time you prepare an offer, there is an option to type a message. Customers will see it in their own Dealia negotiation panel together with the pricing offer.

4. Offering price deductions or other incentives too soon

Sometimes agreeing to provide additional incentives too early during negotiations can undermine your position and make it more difficult to reach a favorable agreement. Rushing to offer discounts, agreeing to unfavorable terms, or conceding ground without sufficient justification can signal weakness and invite further demands from the other party. Instead, carefully evaluate each offer you are about to give and only offer incentives when necessary.

5. Lack of alternative negotiation plan

It’s always good to have an additional strategy in case something doesn’t go as expected. It will help you avoid being backed into a corner. Failing to establish “Plan B” can leave you vulnerable to pressure tactics and limit your ability to win satisfying deals. Before entering into negotiations, identify what would be your alternative negotiation outcome that would still meet your expectations.

Hopefully, this article will help you avoid some common mistakes that can happen during the negotiation process. Make sure to carefully plan the price and conditions that are the most satisfactory for you as well as the least preferable but still acceptable. It will help you establish the lowest price level that you cannot cross. Do your best to gather all the necessary data from the customer and maintain effective communication throughout the negotiation.

Also, establish alternatives to maximize your success. The Dealia negotiation tool will help you achieve the preferable outcome as it gives you feedback from the customer along the way. You can then use it to better understand your customer’s needs and tailor the best offer that will be satisfactory for you and your customer.