Q. I buy supplies and arrange for services for my department and I’m usually pretty good at getting the best price. But the faster pace today worries me a little, and I’m feeling more and more pushed to close deals faster. Is my focus off? I’ve always been wary of “quick deals.” —Hadley T.

A. I don’t think your focus is off. If you’re trying to negotiate deals and you don’t have the technical background or the software backup you need to do business effectively today, that’s something you should fix as soon as possible. But rushing a deal because someone is in a hurry could be a big mistake—and could cost your company money.

Some quick deals are necessary, and there are times when decisions must be made promptly. (Sometimes a quick deal is more to your advantage than to the other party—especially if you’re the one who makes the call. Generally, though, there is still nothing as dangerous in negotiations as a quick deal. Why? Because quick deals are foolhardy, and one person —or company—usually gets short-changed.

You Need Specifics

Sometimes we need time just to get the big picture. And we still need specifics, which probably aren’t always handy when the call comes in. Negotiations work best when both parties get the best deal. If you’re the one receiving the offer, the cards are stacked against you. You’re on the spot, and often there’s a sense of urgency.

Another problem: We tend to talk before we think the deal through carefully and analytically. So, parts of the deal are left out (sometimes by accident, sometimes on purpose.) Unless you have a calculator right at hand, it’s easy to make errors in arithmetic, or not see the larger implications of a figure or “funny money” that’s thrown at you. (“Funny money” is pricing the cost in such as way that it seems less than it really is: “Look—you can spread the payments out over six years at a cost of less than $.75 a day—about the price of a good cup of coffee.” That “funny money” really works out to a cost of $1642. That’s a lot of coffee.) A key fact of life in deal-making: the longer we have to think, the better we think.

Telephone Negotiations--Common Pitfalls

It’s doing business on the telephone that develops into a quick deal, because

the person who calls you has the advantage of surprise—you’re not quite expecting it. Important things are easily omitted, and sometimes there’s pressure to be decisive and to wind up the deal.

Even simple calculations seem to get harder under time pressure. It's hard to listen

when the person is talking quickly, and sometimes we’re reluctant to ask the caller to slow down. The person called can be caught off-guard. You can’t easily get proof of what’s being said, or check out the facts. Sometimes it’s just a case of receiving the call when you have other things on your mind. Here are some do’s and don’ts for handling the telephone quick deal:

Do's

If you’re the person called, listen. Get the full story. Then ask for it to be

confirmed in writing—either by fax or e-mail.

Listen more. The less you talk the more the caller will have to.

If you’re making the call, “dry-run” the phone conversation first.

Make a checklist of what you want to cover to avoid omissions.

Have a calculator handy.

Take good notes of the conversation.

Confirm agreements promptly in your own words, but indicate it’s a verbal agreement only; that final agreement will come only with the final, signed agreement.

Have an excuse handy to break off the conversation if you’re getting stressed, confused, or pressured.

Don'ts

Don't get into a phone negotiation while you’re in the middle of a meeting.

Don't end the discussion unless you understand the deal, have summarized it to the other person’s satisfaction, and have asked them for written confirmation.

Don't get trapped into a quick deal because phone charges are mounting.

Don't hesitate to call back if you discover a computation error.

Don't be afraid to reopen an important issue. If, after thinking about it, the

deal you agreed to looks bad, have the courage to call back.

Telephone Still a Plus

The telephone can be a big help, too. It let’s you:

• Say no—and seem unconcerned—more easily.

• Sound tough or committed to your position.

• Cut off discussion gracefully, or limit the flow of information.

• Interrupt frequently.

• Keep travel costs down.