Preparing for a negotiation requires significant time and effort, and closing the deal is the ultimate goal. However, the closing stage is often the most challenging part of the process and you are likely to face several negotiation barriers.
Research reveals that 17-24% of negotiations fail even when both parties are expected to gain from the deal. This highlights the complex nature of reaching a mutually beneficial agreement and emphasizes the importance of detailed negotiation planning.
In this article, we will explore effective strategies to overcome common obstacles in deals and achieve your negotiation goals.
Negotiations rarely run smoothly and you are likely to encounter obstacles during the process. Closing deals successfully requires careful planning, effective communication, and a strong negotiation strategy.
Let’s look at some common obstacles you might face and ways to overcome them.
While going into negotiations feeling prepared and confident is important, excessive confidence can hinder the outcome.
A research study by Becker and Curhan found that participants who felt negative after a negotiation performed better in subsequent negotiations, while those who felt they performed well became overconfident and performed less effectively. It is important to strike a balance and remain grounded throughout the negotiation process.
Unresolved issues pose another significant challenge in negotiations. These issues may include disagreements about specific conditions or fundamental differences in expectations and goals.
Being proactive and resolving any issues early on in the negotiation process is a key part of success. Maintaining regular and open communication with the other party will help you identify potential problems or concerns.
Understanding and accommodating differing interests is crucial for a successful negotiation.
Both parties must perceive the deal as mutually beneficial for it to close successfully. Taking the time to research and understand the other party's needs and interests will enable you to tailor the negotiation strategy, boosting the likelihood of a favorable outcome.
Closing delays can create conflicts and increase the risk of a deal falling through. Do everything in your power to avoid delays. For example:
Unresolved issues are a common roadblock in deals and can cause negotiations to break down. Keep a record of all issues and address them proactively with the other party. By addressing these issues early, you can prevent them from escalating and hindering the negotiation process.
Creating a sense of urgency is a simple persuasion tactic that is often used in negotiations. Urgency triggers like limited-time offers can encourage the other party to act quickly, helping you reach an agreement faster.
Pro Tip: Highlight time-sensitive benefits or limited-time offers to emphasize the value of acting quickly. However, it’s important to use urgency triggers ethically and avoid manipulative tactics that can damage relationships.
Various studies have shown that transparency is a key element of successful negotiations. A buyer will lose trust immediately if they suspect that you are not being transparent and this is likely to cause the negotiations to break down.
Here are five ways to improve transparency in negotiation deals:
Closing a deal in negotiations is often the most challenging and critical stage of the process. Getting to the closing stage requires hours of preparation, yet studies show that a large number of negotiations still fail to reach an agreement, even when both parties are expected to benefit.
You can improve your chances of success by preparing in advance and having a plan in place to overcome common negotiation barriers. Avoiding delays, addressing issues early, and maintaining transparency are all simple tactics you can use to close deals and achieve your negotiation goals. For negotiation training taught by our leading experts, get in touch with Scotwork Global and begin your negotiation journey today.