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8 Examples of the Negotiation Process

The negotiation process is a series of repeatable steps for reaching favorable agreements with others. The following is the basic negotiation process.
Prepare → BATNA → Exchange → Objection Handling → Offers / Counteroffers → Final Offer → Agreement → Close


Information is the key to all negotiation whereby you may research the other side and their offerings before beginning negotiation. For example, if you are purchasing a vehicle you may investigate average discounts for that model and the motivations of salespeople such as the need to close deals before the end of a quarter, financial year or sales campaign.


BATNA, or Best Alternative To a Negotiated Agreement, is a key estimate that is commonly used in negotiation. This can be calculated for both yourself and counterparties to negotiation and involves an estimate of what you will lose if an agreement isn't reached. For example, an job candidate with rare and highly demanded skills may have little to lose if you can't reach an agreement to hire them. You on the other hand, may desperately require their skill set to solve high impact problems. In this situation the job candidate has a stronger BATNA such that you may have to offer them a high salary to recruit them.


The process of communicating with counterparties to discover their needs and shape your offers.

Objection Handling

Objection handling is the process of trying to clear issues and obstacles to an agreement that are raised by counterparties. For example, a home builder who handles an objection from a customer who has concerns about the indoor air quality produced by a particular type of flooring that the builder has suggested.

Offers / Counteroffers

The process of offering the other side an agreement or responding to their offers. For example, a home buyer who initially offers to buy a house immediately if they can have a 10% discount. The house owner may reject this offer with no counteroffer or may propose a smaller discount.

Final Offer

A final offer is a statement that you will walkaway from negotiations if an offer isn't accepted. Your counterparties may hold you to this such that they will either accept the offer or discontinue negotiations. For example, an employee who holds out for a far higher salary than an employer is offering may be asked to submit their final and best offer. The employer will then either accept or reject this offer with no further offers accepted.


The process of agreeing to accept an offer. For example, a salesperson who gets a customer to say "yes" to a price.


The process of formalizing an agreement or closing a sale.


This is the complete list of articles we have written about negotiation.
Abundance Mentality
Active Silence
Agree To Disagree
Anticipating Objections
Call To Action
Choice Architecture
Door In The Face
Final Offer
Low Ball
Negotiating Power
Foot In The Door
Negotiation Process
Ground Rules
Negotiation Tactics
Social Perception
Message Framing
Win-Win Negotiation
More ...
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