Negotiation is a continual process that requires a number of steps to achieve desired results. If you’re trying to purchase or sell something, or you are in an employment situation where the initial offer of compensation is lower than what you are seeking, there are plenty of strategies for negotiation that can assist you in gaining value and gain what you would like from the understanding the basics of negotiation situation. The first step is understanding the fundamentals of negotiation, such as how to prepare and concepts like ZOPA (zero option plan of action) and BATNA (best alternative to an agreement that is negotiated).
Leverage is an essential element in any negotiation. You must know how much you are able to really walk away from the table and also what is the limits of the other party. Empathizing with the other party’s perspective and sharing your personal perception is the best way to influence. You can also employ a strategy called anchoring to establish a common reference point at the beginning. This forces the other party to focus on the lower part of your price range and makes them more likely to accept a deal.
The goal of negotiations is to create value for both parties in the situation. This can be accomplished by showing the other party how their needs will be fulfilled. In the majority of situations both parties will feel they have achieved something positive through the negotiation process and that their opinions were taken account. Understanding the fundamentals of negotiations will help you be able to negotiate in any circumstance.