Why Most Salespeople Fail at Negotiation and How to Fix It

In today’s hyper-competitive markets, customers are tougher, margins are tighter, and sales cycles are more complex than ever. Yet despite this reality, most salespeople still approach negotiation with habits that work against them.

Our research across more than 120 companies and 20,000 salespeople reveals a consistent pattern: even talented sellers make wrong turns in their negotiations that erode value, prolong the sales cycle, and damage profitability.

The good news? These wrong turns aren’t inevitable. They can be replaced with deliberate, repeatable practices that build stronger agreements and protect margins.

The Most Common Reasons Salespeople Fail

1. They cave too quickly on price.
   Many salespeople believe that dropping the price is the fastest way to win. In reality, this sets dangerous precedents, teaches customers to push harder, and destroys profitability.

2. They don’t uncover the customer’s real needs.
   Too many negotiators stop at surface-level “wants” (e.g., a lower price, faster delivery) instead of probing for underlying needs (e.g., meeting a deadline to impress a boss, reducing personal risk). Without uncovering needs, sellers have fewer levers to create value.

3. They fail to plan effectively.
   Under pressure, sellers often walk into negotiations without clear targets, concession strategies, or a plan for managing information. The result? Costly giveaways and unbalanced agreements.

4. They manage information poorly.
   Sharing too much, too soon,  such as internal deadlines, discounting flexibility, or offering free add-ons, erodes power. At the same time, many sellers don’t ask enough questions to uncover critical information that could change the deal.

5. They underestimate their power.
   Most salespeople assume the customer has all the leverage. In reality, sellers often have more power than they think, whether it’s due to switching costs, unique capabilities, or the customer’s own constraints.

The “Right Turns” That Drive Better Results

Top-performing negotiators don’t rely on luck or personality. They consistently apply six core RED BEAR Negotiation Principles™ to turn wrong turns into profitable outcomes:

• Position Advantageously – Anchor every conversation in a clear, compelling value theme.

• Set High Targets – Those who ask for more, get more. Aim higher, not lower.

• Manage Information Skillfully – Protect sensitive information, leverage the right facts at the right time, and ask questions that uncover actual needs.

• Know Your Power – Power is perception. Recognize and leverage the full range of strengths you bring to the table.

• Satisfy Needs Over Wants – Get beneath surface demands to address what the customer really cares about.

• Concede According to Plan – Never give something away for nothing. Make concessions slowly, deliberately, and always get value in return.

The Bottom Line

Most salespeople don’t fail at negotiation because of a lack of talent or effort; they fail because they rely on instincts that are counterintuitive to effective negotiation. It’s easy to default to quick concessions, emotional reactions, or poor planning under pressure.

However, by learning and applying proven negotiation principles, sellers can shift from leaving money on the table to creating profitable and sustainable agreements.

That’s how wrong turns become right turns,  and how negotiation stops being a painful obstacle and becomes a competitive advantage.

We’ll be doing a deeper dive into each of these wrong turns and the right turns that replace them in upcoming blogs, so stay tuned for more insights on how to master the art of profitable negotiation.

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