Negotiation is a continuous process that involves several steps to achieve the desired results. There are many negotiation techniques which can help you obtain what you want, whether you’re trying to sell or buy something, or in the situation of having an offer for compensation that is less than you anticipated. The first step is understanding the basics of negotiation including how to write and understand concepts such as ZOPA (zero option plan of action) and BATNA (best alternative to a negotiated agreement).
In any negotiation, leverage is vital. You need to be aware of what you can take away and the other person’s limit. The most effective way to gain leverage is being able to empathize with the other’s perspective and sharing your own perspective of the situation. You can also use an approach known as anchoring to establish a benchmark early on. This will force the other party to concentrate on the lower part of your price range and makes them more likely to agree to a deal.
Negotiation is about generating value for both parties. You can achieve this by showing the other side what they need to be fulfilled. In most cases, both sides will leave the negotiations feeling that they’ve achieved something positive and that their views were taken into consideration. Knowing the fundamentals of negotiation will allow you to confidently negotiate in any situation.