Negotiation is an ongoing process that requires several steps to achieve the desired outcomes. Whether you are trying to sell or buy something, or are in a job situation where the initial salary offer is not what you’re seeking, there are plenty of strategies to aid you in creating value and get what you would like from the situation. The first step to understand negotiation is to understand the basics, such as how to prepare and concepts like BATNA (best alternatives to a negotiated agreement) and ZOPA (zero-option plan of action).
Leverage is key in any negotiation. You need to know how much you are able to actually leave the table with and also what is the limits of the other person. Becoming a part of the other’s perspective and sharing your personal perspective is the best way to establish a rapport. Anchoring is a different strategy you can use to establish a reference early on. This forces the other party to concentrate on the lower portion of your price range and increases the likelihood that they will agree to a deal.
The goal of negotiations is to bring value to both parties in the situation. This is accomplished by demonstrating the other party how their needs will be satisfied. In the majority of instances both parties will feel they have made a difference after the negotiation and that their opinions were taken into consideration. Knowing the fundamentals of negotiation can help you feel confident to negotiate in any situation.