
Prepare → BATNA → Exchange → Objection Handling → Offers / Counteroffers → Final Offer → Agreement → Close
8 Examples of the Negotiation Process![]() Prepare → BATNA → Exchange → Objection Handling → Offers / Counteroffers → Final Offer → Agreement → Close
PrepareInformation 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.BATNABATNA, 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.ExchangeThe process of communicating with counterparties to discover their needs and shape your offers.Objection HandlingObjection 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 / CounteroffersThe 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 OfferA 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.AgreementThe process of agreeing to accept an offer. For example, a salesperson who gets a customer to say "yes" to a price.CloseThe process of formalizing an agreement or closing a sale.NegotiationThis is the complete list of articles we have written about negotiation.If you enjoyed this page, please consider bookmarking Simplicable.
NegotiationA list of common negotiation strategies.
Positive Communication
An overview of positive communication with examples.
Low Ball
The definition of low ball in negotiation with examples.
Read Between The Lines
The definition of read between the lines with examples.
Social PerceptionAn overview of social perception.
Effective Communication
An overview of effective communication with examples.
Political BehaviorAn overview of political behavior with examples.Salary Expectations
How to answer the question -- what are your salary expectations?
InfluencingAn overview of influencing with a bunch of examples.Collaboration Examples
Concrete examples of collaboration.
Leadership Examples
A list to help you identity your leadership experiences and accomplishments.
HumorAn overview of humor with quotations as examples.Argument Examples
An overview of common types of argument with examples of each.
Media Messages
An overview of media messages with examples.
Emperors New Clothes
An overview of the Emperors New Clothes.
Loaded Language
The definition of loaded language with examples.
TrendingThe most popular articles on Simplicable in the past day.New ArticlesRecent posts or updates on Simplicable.
About
Behavior Branding Business Business Analysis Business Disadvantages Business Models Business Strategy Cities Color Theory Colors Communication Computing Creativity Culture Customer Experience Customer Service Decision Making Design Design Thinking Economics Education Governance Government More ...
© 2010-2024 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. View credits & copyrights or citation information for this page. |