4 Common Misconceptions About Negotiation in the Professional World

Let's wipe them out and make successful deals.

Life is one big bargaining table. We’re all constantly in negotiating situations — all of us. As long as we maintain social connections and don’t live secluded in a cave, we’re forced to assert our interests.

At work, we negotiate prices with customers and suppliers, we ask our boss for a raise or the implementation of groundbreaking ideas. Other than that, we continuously have to use our negotiating skills in our private lives. We discuss the price of a sofa set with the salesperson at a furniture store. We argue with our partners about food and movie choices at home. You name it.

No one is exempt from negotiations. Therefore, shouldn’t we be better proficient in this field?

When I entered the professional world, I quickly realized that certain benefits and successes didn’t just fall into my hands. Having excellent negotiating skills was a must. However, I had rather a clichéd notion of a brilliant negotiator: dominant, tough, and occasionally prone to theatrics.

Unfortunately, many of us make false assumptions regarding negotiations. A one-sided view primarily causes these misconceptions. Let’s break down four of the typical misconceptions about negotiation in professional life.

1. The negotiating partner has the whip hand.

We often see ourselves as “supplicants” in a negotiation. We have a great interest in pursuing our goals, but at the same time, we perceive our neediness, weaknesses, and fears too intensely.

Guess what. Your negotiation partners are also subject to certain constraints and have fears. They’re probably as dependent on you as you are on them.

A few years ago I had a job interview in a company. I was sitting in front of the CEO, whom I had known before. He assured me that I’d get the job several times during our conversation. Therefore, we quickly got to the most exciting part: the salary negotiation. I rolled up my sleeves and made an opening offer. I suggested a slightly too high amount of money, which was promptly rejected. The manager then made a counteroffer and wouldn’t go any cent higher.

Then I told him I would need some time to think his offer through. My request for more time surprised him. He suddenly tried hard to convince me how great the company’s working atmosphere and economic situation were.

At that moment, it became crystal clear to me that I was in a more powerful position than he was. I took advantage of the golden moment and asked for employee benefits, such as reimbursement of travel expenses (because I was a commuter) and a marginal salary increase after one year of successful cooperation. He accepted both of my requests. And finally, I was on board.

2. Haggling isn’t appropriate everywhere.

In Western cultures, many shy away from haggling. People find haggling silly and believe it instead belongs to an oriental bazaar. Yet, it’s in no way “pathetic” or hopeless to ask for a lower price on a product. The indicated prices in online and department stores and supplier offerings are almost always list prices. And list prices generally include an outrageously high profit margin.

Therefore, we’d better push prices down wherever possible. Surprisingly often, suppliers will lower the price immediately. We only need to present good arguments for a discount.

As a marketing professional, I was also responsible for purchasing printed materials and promotional items. I worked with numerous service providers. Whenever I placed repeated orders with the same partner, I asked for a discount. I emphasized our loyalty as a customer and explained that we had a limited budget. And boom, I paid at least 10 percent less.

I also renegotiated when I wasn’t 100 percent satisfied with the provided service or when the initial contract didn’t cover every detail.

Therefore, the initial price should be seen as an invitation to a negotiation table. It almost always goes a little lower, regardless of the situation or context.

3. The price is the only variable that matters

Do you know those people who stubbornly insist on a specific price and aren’t interested in anything else in a negotiation? Is this perhaps your approach too?

Well, the whole negotiation shouldn’t depend only on the factor price. The price is one of many variables. There are other negotiation factors to be taken into account.

For example, if you want to buy commodities for your company, the payment method, delivery time, and packaging count as well. Do you work with a freelance PR specialist, but they charge a hefty sum for their services? Instead of immediately rejecting the offer because of the horrendous price, you’d better ask what exactly you can expect in return. Maybe it includes a comprehensive service that covers all eventualities, so you don’t get surprised by extra payments later on. And perhaps it’s even worth paying the PR specialist more if they’re willing to provide disproportionately more service.

As you can see, other factors, such as time-saving, more securities and comfort, are also worthwhile in the negotiation. It’s crucial to uncover your counterparts’ deeper needs — those being of high immaterial value for them and you can easily fulfill. That way, negotiations aren’t just reduced to the price.

4. Solid arguments alone lead to success

No, they don’t. Rational arguments alone usually aren’t enough to assert our interests. Negotiations can be just as irrational as human actions. Feeling sympathy and building a trusting relationship is necessary for a negotiation’s success.

Or aren’t you more generous with people who are particularly sympathetic and listen to you actively? Small talk and active listening are two magical tools to gain the other person’s trust and obtain interesting details at the same time.

I used to have monthly reporting meetings with the company’s managing director. Every time I asked for an urgent ad-hoc meeting, I had to deal with his somewhat stubborn secretary. Even though I gave her good reasons for those ad-hoc meetings, she questioned their necessity. She was adamant about her work. Small talk and silliness seemed to be a mere waste of time for her.

One day I had to send her a copy of my passport for a business trip, and she noticed that I was born in the same year as her daughter. She started talking about her daughter, and it turned out that we had a lot in common. I listened with interest and asked many questions about her family.

The ice between the secretary and me was broken at that moment. She became more generous toward me and no longer left me out in the cold.

Humans are irrational and relationship-oriented living beings. Therefore, we shouldn’t only count on solid arguments to succeed in a negotiation. It’s also imperative to connect with the negotiating partner on an emotional level.

In Summary

Misconceptions about negotiation make us overlook our full potential. We don’t realize that we’re missing out on unique opportunities.

To effectively pursue our interests, we should:

• Not underestimate our position of power. Employers also depend on qualified applicants. Otherwise, they wouldn’t spend so much money and effort on employer branding campaigns.
• Not accept the first price because it always includes an outrageously high margin. We’ve to take the initiative and push the price down.
• See price as one variable of many. Not everything revolves around the price — other more profound aspects count too.
• Consider the emotional component of negotiations. Negotiations aren’t only cool calculations. We have to take the time to build a positive relationship first.

We need to bear these misbeliefs in mind because our next great deal is just around the corner. Let’s make the most of it.