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Negotiation mistakes to avoid

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The negotiation process is an essential aspect of the beginning of any new project. However, Inc. Magazine warns that making certain errors could lead to the consultant coming up short.

One simple word can throw off the negotiation process and lead to misunderstanding. According to the source, that word is "between", usually denoting a range, whether in the project's price or start and end dates. Such imprecise wording may lead to disagreements and clients may simply choose the end of the range that better suits them, leaving no recourse for the consultant.

Conceding to deals due to the lengthy negotiation process is also an error, the source warns. Though negotiating can be tedious, it is an important step and should be handled with care and attention to detail.

Finally, though some encourage allowing the client to make the first offer, it may cause the consultant to lose out, the source says. It cites a study by researchers at Northwestern, which found "when a seller makes the first offer, the final settlement price tends to be higher than when the buyer makes the first offer."

Errors in the negotiation process can sometimes lead to a poor relationship with clients and may develop into legal disputes if the problem continues further. In the event that this occurs, entrepreneurs who have protected themselves and their companies with professional liability insurance may have better financial outcomes than those who chose to remain uninsured.  

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