Distributive Negotiation: Mastering the Bargaining Zone
Distributive Negotiation Bargaining Zone refers to the overlap between the buyer’s and seller’s reservation points, also known as the Zone of Possible Agreement (ZOPA). Successful negotiation occurs within this zone.
Reservation Point vs. BATNA
Your reservation point is the walk-away point in a negotiation. BATNA (Best Alternative to a Negotiated Agreement) is what you will do if you cannot reach an agreement. A strong BATNA improves your negotiation position.
Opening Offer
The initial offer sets the stage for the negotiation. A well-considered opening offer can be advantageous.
Concessions
Concessions involve making compromises. Their timing, pattern, size, and consistency are strategic elements in negotiation.
Distributive Tactics
Distributive negotiation often involves tactics aimed at claiming value. Some common tactics include:
- Pressure tactics: Applying pressure to force concessions.
- Silence: Using silence to create discomfort and elicit information.
- Limited authority: Claiming limited decision-making power.
- Emotional displays: Using emotions strategically to influence the other party.
- Playing dumb: Feigning ignorance to gain information or concessions.
- Nibble: Asking for small concessions at the end of the negotiation.
- Good cop/bad cop: A team approach with one member appearing aggressive and the other conciliatory.
- Red herring: Introducing irrelevant issues to distract from the main point.
Responding to Tactics
Being aware of these tactics helps negotiators anticipate and counter them effectively.
Negotiating via Email
Advantages
- Asynchronous communication: Allows time for reflection and considered responses.
- Documentation: Creates a record of the negotiation.
Disadvantages
- Lack of nonverbal cues: Can lead to misunderstandings and misinterpretations.
- Reduced rapport building: This makes establishing trust and personal connection more challenging.
Considerations
Individuals who are comfortable expressing themselves in writing and are adept at interpreting written communication may benefit from email negotiation.
Building Relationships via Email
The “Email and the Schmooze Factor” article (not provided) likely offers advice on building relationships through email. It is important to focus on clear communication, professionalism, and building trust over time.
From Distributive to Integrative Negotiation
Characteristics
- Focus on collaboration and mutual gain: Both parties aim to find solutions that benefit everyone.
- Emphasis on interests, not just positions: Understanding underlying motivations leads to creative problem-solving.
Interests vs. Positions
- Positions: Specific demands or solutions proposed.
- Interests: Underlying needs, desires, and motivations driving those positions.
Uncovering Interests
- Asking questions: Probing to understand the reasons behind stated positions.
- Perspective-taking: Trying to see the situation from the other party’s viewpoint.
- Envisioning their victory speech: Imagining what a successful outcome would look like for the other party.
- Exploring values: Identifying shared values that can form the basis for agreement.