Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.
The best negotiation strategies and tactics come from understanding the negotiation process and knowing how other people use it. The purpose of this bible is to give people a general sense that how to negotiate in a sensible way and how a good negotiation changes the result. This book will present you several crucial strategies that you shall apply before, during and after the negotiation process; give you a clear idea of the meaning of building a long-term relationship. Then this book will also introduce the comparison test to show the usefulness and importance of these strategies.
BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors.Attractive Alternatives is needed to develop a very strong BATNA. In Getting to YES, the authors give three suggestions of how you can accomplish this: 1. Inventing a list of actions you might take if no agreement is reached 2. Converting some of the more promising ideas and transforming them into tangible and partial alternatives 3. Selecting the alternative that sounds best
Here is a very short story to tell you what interest is and why we should analysis it. There are two boys, and both of them want to get the only one orange that we have on the table. Without asking the interests behind their demands, they will probably end up in splitting the orange. However, when we learn that one of the boys wants the orange flesh to make juicy, while the other wants the peel for his experiment, it will end up with a win-win situation. Therefore, in a real negotiation, the interest matters a lot. How can we figure out the other side’s interest? Ask “why” questions. When the other party makes a requirement, ask the why question. “Why do you want to lease your apartment?” “Why are you asking for particular amount of money?” “Why can’t you provide a parking space?” By analyzing the other side’s interest, you may be surprised at the outcome.
This is always the first question that you shall ask in any negotiation. A negotiation result made with the person without the authority will never be enforced. “Do you have the full authority as to this negotiation?” Just ask this one sentence and the result may be totally different.
Most people always hesitate to offer first in the negotiation. However, giving the first offer is very important in negotiation. The magic of the numbers In addition, don’t give round numbers like 10,000 or 20,000. These numbers will let the other side think you are just making random offers, and it will easy for them to cut the number by thousand. However, giving some odd number like 19,875 will let the other side think it is made after reasonable calculation, and they will only cut the number by tens.
The 'Expanding the Pie' negotiation tactic is used to increase the benefit for all. In many negotiations there is an assumption that it is win-lose, such that every gain that one person makes leads to the other person losing an equal amount. Win-win situation Use 'we' language rather than 'you' and 'I'. Frame the situation as a joint problem where you both want to succeed and that you can both get more by working together.
THIS IS THE HANDBOOK YOU NEED! Do you still remember the time when you were looking for an apartment? Do you feel disappointed when you entered in your apartment? Do you need a handbook to lease an apartment? Thank you! Prof. Daniel! We learned a lot from your class. Thank you! Andrew and Dan! You two always gave us necessary help. Thank you! Group Members! It's my pleasure to work with you. Thank you! All Classmates! Because of you, my life is colorful.