Understanding the Basics of Negotiation

Negotiation is a process that requires a number of steps to achieve the results that you want. If you’re trying to sell or purchase something, or in a position where the initial offer of compensation is not what you’re looking for, there are a variety of strategies to assist you in gaining value and achieve what you want from the situation. The first step is to understand the fundamentals of negotiation, like how to prepare and understand concepts such as ZOPA (zero option plan of action) and BATNA (best alternative to an agreement that is negotiated).

In any negotiation, leverage is vital. You need to be aware of what you can get away with and the other person’s limit. Becoming a part of the other’s perspective and sharing your personal views is the best method to gain influence. Anchoring is a different strategy you can employ to establish a benchmark early in the process. This forces the other side to concentrate on the lower price of yours and makes them more willing to agree to a deal.

The main goal of negotiation is to bring value to both parties in the situation. This is accomplished by demonstrating the other person how their needs will be satisfied. In the majority cases both parties will leave the negotiation feeling they achieved something positive and that their views were considered. Knowing the fundamentals of negotiation will give you the confidence to take on any situation and negotiate agreements that are mutually beneficial.

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