A negotiator starts off the negotiation by asking for a very large concession or favor from the other party—one that the other party is almost certain to refuse. When the request is refused, the negotiator makes a much smaller request, which was the option they wanted all along. Begin negotiations with high aspirations. A high [...]
The final agreement will fall somewhere between each party's reservation point.
The reservation price is the least favourable point at which you will accept a negotiated agreement. For example, for a seller this means the least amount (minimum) or bottom line they would be prepared to accept. For a buyer, it would mean the most (maximum) or bottom line that they would be prepared to pay. [...]
Cultures with a reserved communication style feel that the open expression of emotion, even at a point of great frustration or elation, is foolish, inappropriate, and immature. Examples of such cultures include Chinese, Japanese, and to a degree the English and northwestern Europeans.
Request for Quotation. Often used by buyers and other purchasing professionals when acquiring commodities where price will be the main determining factor.
Once agreement has been reached, time, performance, and environment become critical components impacting the agreement. Negotiators must continually review agreements in light of what has happened since the agreement was struck. As time passes, performance progresses, and the environment in which the agreement was originally made changes, so should the agreement. This is the time [...]
Request for Proposals. Typically sent out by an organization that knows the marketplace for the product or service it wishes to buy, using this more formal process to learn how suppliers will respond to a specific set of requirements.
A low level or approach in the amount of risk that a negotiator is prepared to accept in a negotiation. A negotiator who decides to accept the "sure thing" where a result is certain to be achieved is said to be "risk-averse", and is not willing to gamble further on a potential negotiated result.
The process of using formal requests for information, proposals and price quotes.
A few negotiation training courses make use of negotiation simulation exercises delivered using online negotiation training games. In this way, technology can be leveraged to teach participants essential principles of negotiation, psychology or influence in a fun and interactive environment. Some games are played between pairs, whilst others involve a room full of people. The [...]