About Lesson
New words and phrases:
- Anchor:A first offer that is used as a starting point for negotiation.
- BATNA:Best Alternative To a Negotiated Agreement. Your fallback option in case the negotiation fails.
- Concession:Something that you give up in order to get something else.
- Counteroffer:A proposal that is made in response to another proposal.
- Deadlock: A point at which the negotiation has reached a standstill and neither party is willing to move forward.
- Framing:The way in which a negotiation is presented to the other party.
- Logrolling:The exchange of concessions on multiple issues.
- Split The Difference:A common negotiating tactic in which both parties agree to a compromise solution that is halfway between their original positions.
Steps for Negotiating:
- Before you enter into a negotiation, it is important to be prepared. This means knowing what you want, what you are willing to give up, and what your BATNA is.
- Build Rapport.It is important to build a positive relationship with the other party before you begin negotiating. This will help to create a more collaborative atmosphere and make it more likely that you will be able to reach an agreement.
- Start With A Strong Anchor.Your first offer should be ambitious but realistic. This will give you more room to negotiate and make it more likely that you will end up with a good deal.
- Listen Carefully.It is important to listen carefully to the other party’s needs and interests. This will help you to better understand their position and to develop a solution that meets both of your needs.
- Be Willing To Compromise.No negotiation is complete without some compromise. Be prepared to give up some things in order to get something else.
- Close The Deal.Once you have reached an agreement, be sure to document it in writing. This will help to avoid any misunderstandings or disputes in the future.
Examples:
- A salesperson is negotiating the price of a car with a customer. The salesperson’s anchor is the MSRP of the car, but they are willing to go down to a certain price if necessary. The customer’s BATNA is to buy a different car from a different dealership.
- A manager is negotiating a salary with a new employee. The manager’s anchor is the salary range for the position, but they are willing to go up to a certain salary if necessary. The employee’s BATNA is to take a different job offer from a different company.
Exercises:
- Choose a negotiation scenario, such as buying a car or negotiating a salary.
- Identify your goals, your BATNA, and the other party’s needs and interests.
- Develop a negotiation strategy and tactics.
- Practice negotiating with a friend or family member.