January 8, 2024

QUICK DEALS IN NEGOTIATIONS

Quick negotiations are generally foolish negotiations. However, if one party is well prepared for the “quickie” and the other party is not, the advantage lies with the person who is prepared.

My research and experiments confirmed that quick deals were extreme deals. They were very good for one party and very bad for the other. On balance, it was the skilled person who did well in the quick negotiations.

Mistakes are likely to happen whenever people don't give themselves enough time to think or force themselves into a quick decision.

1. The person initiating the negotiation often has the advantage of surprise—if you are on the receiving end, slow it down until you have time to organize your thoughts.
2. Important things are easily omitted in quick deals. There is not enough time to think through possible outcomes or alternatives.
3. There is pressure to be decisive and to close. Resist this pressure until you are comfortable with your decision.
4. Simple calculations become difficult under time pressure - mistakes are made.
5. Misunderstandings lead to unintended negative consequences.
6. There is no time to create Both-Win innovations that can lead to a better deal.

Don’t make a quick deal unless you have to. There generally is more value in being prudent and allowing time to help guide the negotiation to a more optimal conclusion.