Understanding the Basics of Negotiation

Negotiation is a procedure that involves many steps to achieve the results that you want. Whether you are trying to sell or purchase something, or you’re in a situation of employment where the initial offer of compensation is not what you’re seeking, there are many strategies to aid you in creating value and gain what you would like from the situation. The first step in understanding negotiation is to learn the basics, such as how to prepare as well as concepts like BATNA (best alternatives to a negotiated agreement) and ZOPA (zero-option plan of action).

Leverage is key in any negotiation. It is important to be aware of what you can take away and the other person’s limit. The most effective method to increase your influence is by engaging with the other’s view and sharing your own opinion of the situation. Anchoring is a different strategy you can use to establish a baseline early in the process. This forces the other side to focus on the lowest price and makes them more willing to sign a contract.

The main goal of negotiation is to bring value to both parties involved in the negotiation. This can be accomplished by showing how the needs of the other will be met. In the majority of situations both parties will leave the negotiation feeling that they have achieved something positive and their ideas were considered. Understanding the basics of negotiations can help you feel confident to negotiate in any situation.

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