The Five Most Common Rookie Negotiator Mistakes

Whether you're buying a car, asking for a raise or trying to land the deal of your career, you need to know how to negotiate. In my almost 30 years negotiation experience, I've seen rookie negotiators (and sometimes experienced negotiators) make the same mistakes over and over again:

1. Failing to do the necessary homework

As the old saying goes, "failing to prepare is preparing to fail". There are no short cuts. If you want to achieve a great deal, you must put in the hard graft to understand the product (or service), the other party and, most importantly, the relevant market.

2. Overestimating the other party's power (or underestimating your own)

A lack of preparation will precipitate a feeling of heading into the unknown. Whether we like to admit it or not, this creates anxiety, and that's when we tend of overestimate the other party's power in the negotiation, or underestimate our own. Even if we have prepared well, this tendency can still be there, so we must make a conscious effort to assess the power dynamics of the negotiation in an objective, level-headed manner.

3. Skirting around difficult conversations

The best negotiators are personable and friendly - but also direct. However uncomfortable if may feel, you'll save time and avoid damaging misunderstandings if you make your demands in the clearest, most unambiguous way possible.

4. Speaking more than listening

The secret to great negotiating is helping the other party to help you. To do this, you need to listen, and listen carefully. If you allow the other party ample time to expound their case, and respond with probing questions, they'll inevitably reveal the nature of the barriers preventing them giving you what you want. Armed with this vital information, any concessions you may chose to make can be focussed in the most effective way.

5. Disclosing your walk-away price

Openness builds trust, and so being as open as possible is always a negotiation positive. Unless there's a clearly identifiable reason why information shouldn't be disclosed to the other party, then feel free to disclose it! But this doesn't extend to your walk-away price. Let this slip to the other party, and the negotiation is over. If you're selling, the buyer won't offer more than a penny over it and vice versa if you're buying. Why would they?

Happy negotiating!