Quick Answer
Salespeople should avoid negotiating without preparation, discounting too quickly, talking more than listening, focusing only on price, revealing their minimum position too early, making concessions without receiving something in return, and failing to understand the buyer’s priorities. Other common mistakes include negotiating with the wrong stakeholder, reacting emotionally, and ending discussions without clearly documenting agreements and next steps.
Detailed Answer
Many negotiation losses are caused not by the buyer’s tactics but by mistakes made by the salesperson.
- Entering Without Preparation
A salesperson should know:
- Desired outcome
- Minimum acceptable outcome
- Customer priorities
- Decision-makers
- Competitive alternatives
- Negotiable terms
- Non-negotiable terms
- Discounting Too Quickly
Immediate discounting teaches customers that the original price may not have been justified.
Always investigate the reason for the request first.
- Talking Too Much
Salespeople sometimes fill silence because they feel uncomfortable.
Silence can be valuable.
Allow the customer to think and respond.
- Focusing Only on Price
Price is only one part of the commercial equation.
Other factors may include:
- Quality
- Risk
- Delivery
- Service
- Support
- Payment terms
- Implementation
- Giving Without Getting
A concession without a reciprocal commitment reduces value.
Use:
“If we do X, can you do Y?”
- Revealing Your Bottom Line Too Early
Your minimum acceptable position should be carefully protected.
Revealing it early can unnecessarily weaken your negotiating position.
- Negotiating With the Wrong Person
A salesperson may negotiate extensively with someone who cannot approve the final decision.
Understand the decision-making structure early.
- Reacting Emotionally
Fear of losing the deal can lead to:
- Excessive discounting
- Poor decisions
- Defensive communication
- Unnecessary concessions
- Failing to Establish Decision Criteria
If you don’t know how the customer will choose, you cannot effectively position your solution.
- Not Documenting Agreements
After negotiation, clearly confirm:
- Price
- Scope
- Deliverables
- Payment terms
- Timelines
- Responsibilities
- Next steps
Key Principle
Good negotiation is largely determined before the negotiation begins.
Preparation gives salespeople the confidence to protect value and respond intelligently under pressure.
Expert Perspective
Dr. Arunaagiri Mudaliar: Most negotiation mistakes happen before the negotiation starts. When preparation is weak, salespeople negotiate from emotion. When preparation is strong, they negotiate from strategy.