Negotiation is an important skill that can help you secure better deals and come to mutually beneficial agreements in many areas of life. However, negotiation is not always the best approach. There are certain situations where trying to negotiate can actually work against you or may not be appropriate. In this article, we’ll explore when negotiation is not recommended and when it’s better to avoid haggling, compromising or making counter offers.
When you have no leverage
A key principle of negotiation is that you need leverage – something the other party wants or needs from you – in order to negotiate successfully. If you have nothing to offer the other party and no bargaining power, then you won’t get very far demanding concessions or a better deal. For example, entry level employees usually can’t negotiate their salary or benefits because they don’t yet have proven skills or experience that the employer values. In this case, trying to force negotiations will likely irritate the employer without gaining anything.
When prices are fixed
There are situations where prices are simply non-negotiable. For example, pricing in retail stores, rates at a hotel chain or fees charged by a utility company are usually fixed. Trying to haggle over set rates that everyone pays will not work. The store clerk, hotel front desk or service rep has no power to give you a special deal. Negotiation only works when there is flexibility in the pricing built into the system.
When you have no other options
Leverage in a negotiation comes from having strong alternatives. If you absolutely need what the other party has to offer and have no other choices, then you have zero leverage. For instance, if you desperately need a job and this company is your only promising lead, you won’t have much luck negotiating the salary – you either accept the job at the offered pay rate or end up with nothing. Having options and being willing to walk away gives you power to influence the deal.
When preserving the relationship is critical
In some situations, maintaining trust and a healthy ongoing relationship is more important than “winning” in a negotiation. Negotiating forcefully and trying to get the upper hand may get you concessions in the short term but damage a valuable connection. For example, being combative with your spouse over household responsibilities could undermine your marriage. Sometimes it’s better to have a collaborative discussion and compromise without turning it into a contentious negotiation.
When you have incomplete information
Entering a negotiation without solid knowledge puts you at a disadvantage. The other party may take advantage of information gaps to manipulate the negotiation in their favor while giving up minimal concessions. For complex deals, like negotiating to purchase a business, it’s wise to thoroughly research important details like assets, liabilities, revenues, expenses and risks before negotiating a price. Otherwise the seller can control the narrative and hide potential red flags while you’re left negotiating blindly.
When the deal is genuinely fair as-is
Just because you can negotiate does not mean you always should. If the offer, pricing or terms presented to you are already reasonable and competitive, negotiating may be unnecessary. Think carefully before pushing back just for the sake of haggling over minor details or making the other party jump through hoops. Pick your battles wisely and consider if negotiation is needed or likely to accomplish anything beyond causing friction.
When you lack confidence
Negotiating successfully requires confidence in your position, ability to influence the other party and willingness to walk away if necessary. If you lack self-assurance, the other side can sense weakness and take advantage. You may cave to suboptimal terms or get pressured into a bad deal. Build up your confidence by thoroughly preparing, practicing negotiation skills and learning your value before entering high-stakes talks.
When alternatives like mediation are better options
There are alternatives to direct negotiation that are less adversarial, preserve relationships and reach resolution. Mediation using a neutral third party may help settle disputes and find acceptable compromises between conflicting interests. In a nasty divorce or bitter business dispute, mediation or arbitration can circumvent an emotional negotiation standoff and lead to mutual agreement.
When you have nothing to gain
Only devote time and effort to negotiating if there is potential for meaningful gains. Don’t waste energy haggling over unimportant details, insignificant cost savings or symbolic concessions that have little practical value. Focus negotiations where real benefits like cost reductions, improved terms or relationship building are achievable. Decline negotiations unlikely to yield substantive advantages.
When the timing is wrong
The context around a negotiation can determine whether it’s worthwhile to bargain at that moment. Don’t negotiate when the other party is: angry or upset, extremely busy, facing urgent deadlines, or waiting for buy-in from decision makers. Similarly, avoid negotiating when you are: unprepared, distracted by other priorities or emotionally charged over the issues. Wait for cooler heads to prevail or for time pressures to ease before engaging.
When mutual good faith is lacking
Productive negotiations require both sides to bargain ethically and in good faith. If the other party has proven untrustworthy, acts in bad faith or has undermined you before, entering into negotiations gives them opportunity to further take advantage through deceit and manipulation. Protect yourself by avoiding negotiations with parties who have not earned trust and shown willingness to deal fairly.
When better alternatives emerge
The business landscape can change, leading to lost leverage and new options materializing. Be ready to walk away from negotiations if your alternatives improve. For example, during a job offer negotiation, you gain more leverage if another company makes you a better offer. Be willing to forego negotiations already underway and pursue the superior opportunity rather than getting locked into an outdated negotiation.
Conclusion
Negotiation is a useful skill for securing win-win agreements, but it’s not always the best path. Consider if negotiation is appropriate and likely to succeed before investing time and effort. Avoid negotiating when you lack leverage, confidence or viable alternatives. Also beware of pressing negotiations when the timing, relationships or fairness are unfavorable. In such cases, compromise, build trust or wait for conditions to improve before negotiating.