Preparing to negotiate
Know your interests, your alternative and your walk-away point. Lesson 45 of 58: Negotiation, CEFR C1.
Positions and interests
- A position is what somebody says they want: “I need a 20% discount.” An interest is why they want it: their budget is fixed for the year, or their boss promised a saving. Positions clash; interests often fit together. A buyer who “needs 20% off” may be just as happy with longer payment terms, which cost you little.
- Before any negotiation, write down your interests, and guess theirs.
- What’s most important to you in this deal? (Discovering interests)
- Help me understand why that matters.
Your BATNA and walk-away point
- BATNA: your Best Alternative To a Negotiated Agreement — what you will do if this deal fails. If you have another job offer, your BATNA is strong. Your walk-away point (reservation point) is the worst deal you will accept; below it, your BATNA is better. Decide it before you start, and do not move it in the heat of the moment.
- The ZOPA, the Zone Of Possible Agreement, is the overlap between your walk-away point and theirs. If there is none, no deal is the right outcome.
- If this doesn’t work out, we’ll go with another supplier. (Knowing your BATNA)
- Our limit is forty thousand. (Your walk-away point: never said first)
- Tip: Never reveal your walk-away point. Improve your BATNA before you negotiate: it is your real power.
Preparation language
- In your team: “What’s our ideal outcome?” “What’s our walk-away?” “What can we offer that costs us little but is worth a lot to them?” “What will they push back on?” Plan your tradeables: price, timing, volume, payment terms, scope, support, length of contract.
- What could we offer that’s cheap for us but valuable to them?
- What are they likely to push back on?
Lines to have ready
- What’s most important to you here? (Finding their interests)
- What would an ideal outcome look like for you? (Opening up options)
- Help me understand… (Exploring a position)
- What are our options if we can’t agree? (Thinking about BATNA)
- Let’s focus on interests, not positions. (Reframing)
Your turn to speak
- Prepare out loud for a real or imagined negotiation (a salary, a rent, a supplier price): state your ideal outcome, your walk-away point, your BATNA, two interests of yours, two guessed interests of theirs, and three tradeables.
- I stated a clear walk-away point
- I named my BATNA
- I separated positions from interests
- I listed three tradeables
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