Whether you’re haggling over an automobile or trying to reach an agreement with a potential vendor, knowing how to negotiate is a skill that will get you far. And yet, many of the assumptions people make about negotiation are suspect, to say the least.
Let me show you what I mean. In my time as an executive coach, I’ve observed a number of business owners and executives making what I thought were tactical errors in their negotiations. Here are some of the ones that stood out to me the most.
Thinking It’s Wrong to Make the Initial Offer
Here’s what conventional wisdom tells you: The person who makes the first offer is entering into a vulnerable position, and as such it’s generally better to go second in the negotiation process.
I’m not sure that I agree with this—at least not all of the time. The way I look at it, the person who goes first sets the tone. You create the initial reference point around which all further offers will be based—and statistically, most counter-offers don’t veer too far from the initial one.
The bottom line? It may not always be right to offer first, but there can be real power to it.
Only Accepting One Outcome
Entering into a negotiation, some executives tend to think there is only one outcome they could possibly be content with.
I think there’s some real merit to having a specific goal in mind, and to being able to visualize what you want to come out of the negotiation process. As the same time, though, I’d recommend not getting too set in your ways. You may receive some other possible outcomes that are different, but perhaps just as good—if not more so. At least be open to them!
Accepting an Offer Too Quickly
This one may surprise you: Even if you’re given an offer that’s just what you want, you can err in accepting it too quickly.
The reason for this is simple: If you accept an offer in a way that seems flippant or thoughtless, the other party won’t feel as satisfied in the process. They may even feel like they gave you too good an offer. And that’s something that will stick with them—making them less likely to want to work with you again in the future.
These are just a few of the ways in which I’ve seen negotiations mishandled. I’d love to coach you through some additional strategies and tips. Reach out today and let’s set up a time to talk! You can contact Dr. Rick at www.rickgoodman.com or call 888-267-6098.