5 Ways Negotiations Can Backfire on You

Having good negotiation skills is important both in and out of the workplace. Whether you want to negotiate your salary or save some money on a big-ticket purchase, you need to step forward with confidence but also make sure you're not setting yourself up for situations where your efforts backfire. Here are five ways negotiating can blow up in your face.

1. Salary Negotiations

You finally managed to work up the courage to talk to your boss about a salary increase -- good for you! Your boss recognizes you're a hard worker and appreciates your dedication. She gives you a raise but also changes your position -- and job responsibilities -- so you can take on more work, which means you negotiated a better salary but are now responsible for a bigger workload. One way to prevent this from happening is to line up another job offer so you can tell your boss you are considering other opportunities. Make sure this position is similar to your current position and is offering a higher salary so you are in a more powerful position to negotiate.

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2. Cell-Phone-Plan Switch

When you're in the market for a new cell phone plan and are ready to switch providers, you may be shopping around for the best deal. Letting a cell phone provider know you are thinking about switching might prompt the company to offer a great rate but you could be looking at a longer contract just to secure the deal. Make sure you read the fine print and understand the terms of the contract so you understand your options -- as well as the limitations and restrictions.

3. Cash-Only Deals

If you've worked out a cash-only deal with a merchant for a big-ticket item such as a new computer, flat-screen television, designer watch or other high-end product so you can take advantage of a discount for paying in cash, you may feel better about the purchase. However, keep in mind you won't have any protection as a customer if the item turns out to be inauthentic merchandise or falls apart and doesn't have warranty coverage. When you pay with a credit card, you may be able to get back some or all of money for unsatisfactory purchases. If you still want to pay in cash, consider asking for an authenticity card and any type of warranty on the purchase.

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4. Bulk and Wholesale Purchases

Whether you're stocking up on grocery items from a local co-op or beauty items from an online beauty supplier, you may be able to negotiate a better deal when buying in bulk. Bulk and wholesale prices can translate to significant savings but only when you make full use of the items purchased. If you end up throwing away spoiled or unused grocery items, can't sell items before they expire or miss opportunities to sell wholesale items for a profit, you will end up paying much more than you expected. Factor in the cost of storing and disposing large containers of items and you've set yourself up for a deal disaster.

[See: 7 Products to Never Buy in Bulk.]

5. Pay-in-Full Memberships

Many membership- and subscription-based businesses make money from recurring customers and will try and lock you into a three-month, six-month or yearlong contract. If you're considering joining a new gym or getting a monthly membership from an online retailer for access to discounted goods, you may be tempted to pay for all 12 months in full to earn a discount. Some companies will take 10 percent off the cost of a yearlong membership or subscription if you pay in full upfront as an incentive to sell the 12-month plan. If they don't advertise any type of discount, you could try to negotiate pre-paid pricing. However, this will backfire if you end up not using the membership for a few months or decide you don't want it. Most businesses will not refund the remainder of the membership, since you've gotten a discount for the full-year commitment.

Sabah Karimi is a columnist for the blog Wise Bread, where you can find consumer tips like how to select the best balance transfer credit cards.