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Understanding the Basics of Negotiation

Terbit 29 August 2023 | Oleh : admin admin | Kategori : Uncategorized

Negotiation is an ongoing process that involves several steps to achieve desired outcomes. Whether you are trying to sell or purchase something, or are in a situation of employment where the initial offer of compensation is lower than what you are seeking, there are numerous negotiation strategies that can help you to create value and gain what you want from the situation. The first step in understanding negotiation is to learn the basics, which includes how to prepare as well as concepts such as BATNA (best alternatives to a negotiated agreement) and ZOPA (zero-option plan of action).

In any negotiation, leverage is important. It is important to know what you are able to walk away with and the other person’s limit. Being able to understand the other person’s viewpoint and sharing your own perception is the best way to gain influence. Anchoring is a strategy you can use to establish a reference early in the process. This can force the other side to concentrate on the lower price of yours, and makes them more likely to sign a contract.

Negotiation is about creating value for both parties. It is possible to achieve this by showing the other side how their needs will be satisfied. In the majority of cases both parties will feel that they’ve achieved something positive following the negotiation and their opinions were taken into consideration. Knowing the basics of negotiations will give you confidence to negotiate in any circumstance.

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