Negotiation Styles
To learn how to negotiate, the first thing you need to know is that there are different negotiation styles, depending on how much emphasis you place on your own needs and on the needs of others.
There are those who see negotiation as a "game of chance" where some win and others lose. However, a space for collaboration where both parties win is possible. And there are frequent situations where, instead of trying to get the biggest piece of the pie, making the pie bigger for everyone is possible!
The key concept of negotiation: BATNA
MAAN stands for Best Alternative to Negotiated Agreement. It comes from the English “ Best Alternative to Negotiated Agreement” (Batna).
The point of negotiating is to get something better than you would get without negotiating. The BATNA is a bargaining measure that protects you from both accepting a deal you should reject and rejecting one you should accept.
The BATNA defines what is the minimum you are willing to accept. Your counterpart will also have a BATNA. If there is a gap between these BATNAs, then it is possible to negotiate, and there is a possible area of agreement.
The BATNA is key in the negotiation, since both parties know theoretically that there is a australia number for whatsapp ZOPA or room to negotiate. But they do not know for sure what the counterparty's BATNA is, and at the same time the counterparty does not know for sure what your BATNA is. During the negotiation it is possible to play with this:
Try to make your BATNA appear better than it is. Your counterparty may push for an agreement as close as possible to what they believe your BATNA to be.
Find out as much information as you can to get the best estimate of your counterparty's BATNA. You can push to close a deal as close to your counterparty's BATNA as possible, but to do that, you need to have good information (your counterparty may try to pretend otherwise).
Sometimes, agreements are not reached, despite the existence of room for negotiation. This happens because the parties have incorrect ideas about the other party's BATNA.
What is my BATNA?
Make a list of actions that could be taken if no agreement is reached in the negotiation.
Refine the best ideas and turn them into practical, real-world alternatives.
Tentatively select the best of these alternatives. Whatever you negotiate should be better than this alternative.
Preparing for negotiation
The following table is your best tool to prepare for a negotiation:
Interests. Negotiation is often more complex than just “handing out” an amount. There may be more aspects that may interest the parties. Just to mention a few examples, a supplier may be interested in being paid on a certain date, or in cash. A client may be interested in attributes that do not necessarily have to do with the product/service itself, but rather, for example, that the company they work with is “not too small so that it can deliver, nor too big so that I am always an important client.” This is how multiple interests exist in a negotiation. In the table you can list your interests and those of the other party. During the negotiation, you can corroborate, discard, or identify new interests. Some interests will be more important than others, and during the negotiation it is possible to “sacrifice” some in order to obtain others.
Options. One mistake during negotiation is trying to reach an agreement as quickly as possible. It is likely that in a hurry we will reach an inferior agreement. Before trying to close an agreement, we must explore possible options for agreement. Put them on the table. Then we will see which option is the best. List different options that you would agree to, for example, “I could earn less money if they buy me on such dates”, or “To work such hours I would have to sacrifice another activity, so I would only do it for X amount of money” or “I would do it if we could make it compatible with my schedule”, etc. At the same time, list options that you think could be interesting for your counterparty. During the negotiation, you will ask questions and try to corroborate, rule out and identify new options.
Criteria. Sometimes the deal is not closed by defining “the number.” Rather, it is closed by defining the criteria. Examples of criteria might be “Let’s see how much someone with your career and experience is paid at mifuturo.cl.” Or “you will keep x% of the sales revenue.”
BATNA. Identify your best alternative to a negotiated agreement. Having a good alternative will give you negotiating power. You will lose the fear of negotiating harder, because you know that you do not have to “win” the negotiation. In fact, there are those who think that a negotiation is won by those who are not afraid of losing it. At the same time, try to estimate your counterpart’s BATNA before the negotiation. During the negotiation, you will obtain information that will allow you to better estimate the other party’s BATNA.
Offer. Identify your aspiration, what you are satisfied with, and the minimum acceptable (tolerable) amount. Having this clear and in writing before the negotiation will help you a lot. It is classic that during a negotiation, when you have a tough counterpart, sometimes you get frustrated because you did not achieve a certain secondary interest. You feel that the other does not want to give in, and therefore you are not willing to do so either. You get irritated during the discussion. You feel that the other is gaining much more than you. And so you withdraw from a negotiation in which, in any case, you were reaching a satisfactory agreement. Having clarity in advance about what is satisfactory for you helps you not to fall into the heat of the negotiation.