Term
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Definition
| Best Alternative to Agreement. Its the fall back option if the deal doesn't go through. |
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Term
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Definition
| The worst offer you're willing to accept |
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Term
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Definition
| Range between buyer's and seller's reservation prices. This area represents the total opportunity for a deal. |
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Term
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Definition
| The person who makes the first offer usually wins the negotiation. This is because they "anchor" where the negotiations start from and opponents do not tend to adjust enough. Also, high first offer allows you to make concensions and appear more agreeable. Also, anchoring works best when first offer is precise because it signals that you put a lot of thought into the offer. |
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Term
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Definition
| Never! People are at the table to negotiate. You can win more value if you do not walk away at a first good offer. |
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Term
| What are the 5 items on the "Negotiation Checklist" that are "about you"? |
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Definition
1) What is your Overall Goal?
2) What are the Issues?
3) How important is each issue to you?
4) What is your BATNA?
5) What is your Resistence Point? |
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Term
| What are the 4 items on the "Negotiation Checklist" that are "about the other side"? |
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Definition
1) How important is each issue to them (Plus any new issues they added)?
2) What is the other side's BATNA?
3) What is the other side's resistenc point, if any?
4) What is your target? |
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Term
| What are the three items on the "Negotiation Checklist" that are "about the situation"? |
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Definition
1) What deadlines Exist? Who is More Impatient?
2) What Fairness Norms or Reference Points Apply?
3) What Topics or Questions Do you Want to Avoid? How Will you Respond if the other side asks anyway? |
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Term
| What are the five items on the "Negotiation Checklist" that are about "the relationship between the parties"? |
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Definition
1) Are the Negotiations part of a continueing series? If so, what are the future consequences of each strategy, tactic, or action you are considering?
2) Can you trust the other party? What do you know about them?
3) What do you know of the other party's styles and tactics?
4) What are the limits to the other party's atuhority?
5)Consult in advance with the other party about the agenda. |
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