Leverage in negotiations can exist in many forms. It could be as simple as a vendor having a unique product or a preferred customer who is the largest account and warrants special considerations. It can be the way one party uses their marketing prowess or how a small company takes advantage of a great customer [...]

Although many negotiations in business are transactional and are more about dollars and value, relationships can sometimes affect the outcome. Credibility, trust, loyalty, and past behaviors can often make or break a deal. In a ‘one time’ transaction, like purchasing a house or selling to someone you will never deal with again, relationship is usually [...]

It is sometimes said that ‘timing is everything’. While that may not always be true, timing can play a pivotal role in negotiation, especially if one party has a tight timeline. Being up against the clock or with a hard date upcoming can result in major concessions in price, terms, or other elements of a [...]

The amount of knowledge you have about the various elements in a negotiation is crucial. This includes information about what is being negotiated for, the other party or parties, and parameters that might play a part in the transaction such as the way the transaction might be handled. You could think of this as the [...]

When you start a negotiation you obviously have an objective, most likely a result that produces something you want or need. Your objective might be to purchase a product or get someone to perform a service. That objective is comprised of your interests. Being very clear about your interests before you begin a negotiation is [...]

There are five critical factors in negotiation: Interests, Knowledge, Timing, Leverage, and Relationships. Understanding each of these concepts is essential for success. In preparing for a negotiation, the more you are aware of them and can utilize them, the more likely you will have a positive outcome. In assessing the five critical factors, interests stands [...]

Of the potential outcomes in a negotiation, only Win-Win is truly a good result. Reaching a Win-Win outcome depends on parties negotiating in good faith and seeking a mutually fair deal. A positive outcome from a Win-Win negotiation increases the likelihood that the parties involved will negotiate with each other again, having established a level [...]

In all situations, but especially when No Deal is the potential outcome, it is important to understand your Best Alternative To a Negotiated Agreement (BATNA) before negotiation begins. For example, if you are trying to buy a new product to replace an old one, your BATNA would be to continue using the old product. If [...]

In a typical negotiation there are 4 potential outcomes: Win-Win, Win-Lose, Lose-Lose, and No Deal. Note: Our focus here is negotiation between two parties. Negotiation involving more than two parties can be more complex and can result in combination outcomes. Many people enter a negotiation hoping to ‘win’ so it might seem like Win-Win and [...]

Some people dread negotiations. The idea of haggling and being involved in a contentious discussion makes them uneasy. These people lack confidence and may feel intimidated. They often avoid negotiation situations or concede quickly. A popular perception exists that negotiation is something that happens in a smoke filled room between business experts under an aura [...]