When does negotiation make no sense?

Service Business

Negotiation is a multi-stage process. You have to prepare for them properly, which consumes a lot of time and money that every entrepreneur must take into account. You can skip the stage of collecting information about the contractor and its offer, but then we cannot be sure that the talks will end favorably for us. You have to bear in mind that there are situations in which it is not worth negotiating. You should be able to recognize them in order to avoid the involvement of financial resources and our energy, which can be used to implement other projects. When and with whom is it not worth negotiating?

Negotiations - with whom should they not be undertaken?

As an entrepreneur, you should be able to judge your contractors - whether they can be trusted, whether they are truthful and what their true intentions are towards you and the contract you have signed. Establishing a closer relationship with a business partner significantly facilitates the conclusion of commercial transactions. You can be sure that the contractor will fulfill the agreed terms of cooperation.

Do not negotiate if:

  • you don't trust someone

  • you have doubts about his intentions either

  • you know that a given entrepreneur acts unethically and against accepted social norms, breaking the applicable law.

A contract may be attractive and seemingly beneficial to your company, but entering into it with an untrustworthy partner can expose you to financial losses, loss of reputation, and even unpleasant legal consequences.

Example 1.

A new sales representative came to the grocery store owner

food wholesaler. He offered the entrepreneur a very profitable contract for the purchase of a large amount of candy and chocolates, which are quite easily tradable commodities. The owner had never worked with this representative before, although he obtained supplies from this warehouse himself. He decided to sign the contract, having previously negotiated several terms of the contract. The entrepreneur did not pay attention to the entry that was added in small print in the relevant contract. It turned out that the sale concerned products with a short use-by date. The owner drew attention to this fact when customers began to return expired sweets to the store.

You should also not negotiate with a person who is influenced by strong emotions. Outbursts of anger, screams and threats can spread to us, and the conversation about business turns into a verbal skirmish, and then turns into an argument that will certainly make it difficult to come to an agreement.

Negotiations - when is it not worth taking them?

The negotiation process should be initiated when we really want to work out new, mutually beneficial terms of cooperation. However, this will not be possible under the following circumstances:

  • we do not have sufficient negotiating power - it is not worth negotiating if we know that we will not be able to convince our partner to step down on even one point of the contract,

  • we are not sufficiently prepared for negotiations - we do not know the competition's offer, we are unable to judge where our limit of concessions lies, we do not have arguments that would support our position,

  • there is a much better offer on the market - you should not enter into negotiations if you can easily find an offer from the competition, which is more beneficial for us without bargaining,

  • the parties agree as to the terms of the contract - if your partner agrees to the terms set by you, there is no room for negotiation, because the contract is signed,

  • representatives of both parties do not have the appropriate decision-making powers - before starting negotiation talks, you should make sure that the persons representing your partner can make binding decisions regarding individual arrangements. Otherwise, the negotiated terms will have to be re-approved by the entrepreneur himself, i.e. the other party to the contract,

  • we can fulfill a given need in a different way.

Example 2.

The entrepreneur invited business partners to lunch. There were no tables available at his favorite restaurant. The businessman did not negotiate with the waiter as there was another delicious restaurant with free tables nearby.