Negotiation Terms

anchor point

An anchor point is a reference point that negotiations are centered around.

It is the best outcome that one side hopes to achieve.

Normally, the first offer made during a negotiation serves as the anchor point.

Negotiators try to?anchor?the negotiation to their advantage to?gain the upper hand.

bottom line

A bottom line is the worst outcome that one side will accept.

If someone is pushed beyond their bottom line, they may walk away from the negotiation.

BATNA

BATNA stands for "Best Alternative to a Negotiated Agreement".

It is the second best option a side may have in a negotiation.

A BATNA can be used as an alternative if an agreement can't be reached.

When one side has a good BATNA, they can make fewer compromises, so they have more power.

leverage

Leverage is the power that one side has to influence another.

If you have more leverage in a negotiation, you can persuade people to accept your terms.

Typically, the side most in need of an agreement has the least amount of leverage.

deadlock

In a deadlock, neither side is willing to compromise and no agreement can be made.

A deadlock happens when one side pursues its own interests instead of mutually beneficial terms.

To break a deadlock, negotiators must find a?win-win?outcome.

concession

A concession is a compromise that's made in order to reach an agreement.

Making concessions allows both sides to get part of what they want.

But giving too many concessions may make one side seem weak or?desperate.

Questions

Which offer in an negotiation acts as? the anchor point?

> the first offer.

Why would one side make fewer compromises if they have a good BATNA

>they can turn to their alternative if necessary.

Negotiators try to?anchor?the negotiation to their advantage to?gain the upper hand

Because we didn't have a good BATNA, we unfortunately needed to settle for less than we had hoped.

The more leverage someone has in a negotiation,...

> the stronger their position will be

To break a deadlock, negotiators must...

>find a win-win situation.

Talented candidates have more leverage during job negotiations because many companies what to hire them

If you make concessions too early, you may not get as much as you could from the other side.