Not Leaving Dollars on the Table During Business Negotiations

Gender disparities in business negotiations often result in women leaving money on the table. Studies show that men are more willing to bargain back and forth to get what they want where women tend to compromise in an effort to smooth things over. According to “The Cost of Not Negotiating” co-authors Linda Babock and Sara Laschever, “Left unchecked, gender disparities in negotiation quickly transform into clear pay and promotion inequalities.” Women often start negotiations at a lower price, devaluing their worth and resulting in less than desirable business deals.

 Women can avoid falling into preconceived gender modes of negotiation by being prepared, confident and vocal. Laura Kray, author of “Women in Higher Education,” points out a few key points to successful negotiations. It is essential to establish a target point—an optimistic but realistic price—as well as a reservation price or bottom line prior to meeting with your client. Realistically, it is rare for each party to receive the exact terms they desire, so each party must come prepared with the best alternative to the negotiated agreement in mind. The Program on Negotiation at Harvard Law School points out that the number one mistake made during business negotiations is underestimating your own authority, ability and strengths. After all, you cannot successfully negotiate when you don’t know how much your products and services are worth.

Hire CEO Tory Johnson further highlights the importance of thorough preparation, self-confidence and effective communication in business negotiations. It is crucial to never overestimate your opponent’s knowledge of your weakness. A confident self-presentation and body language sets the tone for success. “Banish negativity. Don’t wait until it feels right or comes naturally because you’ll be waiting forever,” Tory says. For some people, negotiating may never be fun, but it is an essential part of advancing one’s company and getting what you deserve.

Ultimately, the goal of business and promotion negotiations isn’t to make more money, but rather to prove your value and determine a compromise that works. Tory inspires fellow businesswomen to proudly acknowledge their strengths and assert their importance in today’s marketplace, “Don’t leave money on the table because you’re too shy to ask. And when you do speak up, be sure to celebrate yourself for using your voice.”

Never feel that walking away from a bad deal is a sign of weakness, but rather the contrary—an invaluable strength—as you are holding out for negotiations that maximize your profit and fulfill your business needs. It's a smart move. Dee McCrorey reminds women business owners, “Even in tough economic times, you really don’t want to do business with someone or work with a company that uses strong-arm tactics to get only their way.” To decipher what a bad deal looks like, you must be thoroughly prepared with fieldwork regarding your client’s strengths and immediate needs.

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