Principled negotiation is an interest-based approach to negotiation that focuses primarily on conflict management and conflict resolution. Principled negotiation uses an integrative approach to finding a mutually shared outcome. This approach is primarily used by mediation practitioners and academics, although there is some attempt to apply this approach to commercial or business negotiations. This [...]
In every negotiation the potential exists for the parties to improve their joint satisfaction at no loss to either. The more intense the search for joint improvement, the more likely people will be to find superior solutions. This process of joint improvement is called problem-solving bargaining.
One party to a negotiation declares that certain issues are sacred and are not negotiable. If the issues really are not sacred, but are only positioned as such for strategic purposes, these issues are called pseudo-sacred issues.
The assignment of purchase orders by a business to a third party who accepts responsibility for billing and collecting from buyers of the company's products and services. It is a form of expensive financing used to purchase materials required to produce products needed to fulfil a purchase order already received from a buyer.
An arrangement where one company (the seller), agrees to sell products or services to a foreign purchaser, but also simultaneously agrees to purchase specified products or services from the foreign partner. Also known as parallel bartering and is the most commonly used form in a countertrade agreement in international business interactions.
A phrase that is simple to remember, mirroring confirmed research that shows, where one sets their opening position for any and all terms and conditions involved in a negotiation, that open will subsequently directly impact the outcome of the negotiation. One must "Raise the Bar" in order to do better upon completion. Often paraphrased as [...]
A negotiator may act crazy or irrationally and make a big scene. Sometimes the other side will give in to their demands simply to get the crazy person to stop doing what they are doing.
Using reverse psychology to get someone to agree to move from a firm position. This technique is based upon the human need to assert one's individual freedom when it is challenged. A negotiator achieves the desired "reaction" from the other party by paraphrasing their negotiating position in a way that makes it sound more extreme [...]
Once the other party establishes an offer, or anchor point, it is wise to immediately make a counter-offer. This minimizes the importance of the initial anchor point. This also signals your desire to negotiate in that you do not accept the initial offer. Do not adjust your BATNA or target based on this initial anchor. [...]
Making similar or like exchanges of information, concessions, introductions, money, or something else of value that are given by one party to another party. Think of: "Tit-for-Tat," or "You scratch my back and I"ll scratch your back," "I did this for you now you owe me." In general we feel obligated to return in kind [...]