Unit 13: Vocabulary

A repeated back and forth to negotiate an agreement, trying to get the other party to agree to one's terms.

When mastering the art of negotiating you will learn that there are different bargaining strategies, so pay attention to which strategy is being used on you.

One's backup plan should no consensus be reached in contractual dialogues.

Having a solid BATNA is crucial because it will allow you to make a rational decision on whether to accept a negotiated settlement.

The outcome at the end of the negotiation that best satisfies all parties' interests.

This is one of our long-term clients, so we are in good spirits to achieve the BPA in tomorrow's negotiations.

To formally conclude negotiations by making the agreement official, often by having both parties sign a contract.

Patricia is one of our best Salespeople, she can be counted on closing several deals in a day.

Giving up a demand or value for the sake of reaching an agreement.

Our company went into the negotiation expecting to make a few concessions, so they decided on those demands they were willing to concede beforehand.

Agreement by all.

When no consensus could be reached, all parties agreed to pick up negotiations the next day.

A proposal made in response and as a rejection to a previous proposal.

She turned down the opening proposal, but came prepared with a counter offer.

A point where no consensus can be reached as no party is willing to compromise or make relevant concessions.

After a few hours of negotiating we found ourselves in a deadlock, so the decision was made to cease negotiations and explore other alternatives.

Expectations or needs that one is asking to receive.

One of the most important parts of successful negotiation is good preparation, so you should assess your demands in advance.

A sudden and intense disagreement between the parties, can result in a heated argument.

When Randy noticed the ineffective communication between his colleague and their potential partner, he stepped in as mediator to prevent an escalation.

Open to changing one's demands.

The prices our suppliers named seemed too high for us, so we asked them if they were flexible in terms of pricing in order to keep negotiations open.

Making a request that is much bigger than one expects the other party to accept.

When I go to the local market I expect the vendors to high-ball their offers, so I usually low-ball in return and in the end we settle on a fair price.

Something that gives one party bargaining power over the other party.

Peter knew that his company had leverage over its clients, as it was the only importer of tropical fruits during the pandemic.

Making an offer that is much smaller than one expects the other party to ask for.

When Suzy negotiated her salary at her new job, she knew that the company's first offer would be low-balled, and to therefore not accept it.

One's “ideal” result that one hopes to achieve in the negotiation.

Before entering negotiations, we prepared by determining our MDO, our BATNA, and our walkaway.

Several offers with different terms but the same economic value to the person offering, that they present to the other party at the same time.

The firm wasn't willing to make too many concessions, but it did have a MEEP strategy prepared and was confident that one of the proposals would be accepted.

Two or more parties engaging in discussion with the goal of coming to an agreement regarding a transaction or decision.

I would like to receive $300 for my bike, but I am open to negotiation.

A “take it or leave it”, a final offer which if not accepted ends the negotiation and/ or implies serious consequences, the threat possibly being to not come to an agreement at all.

During their protests the workers issued an ultimatum: better working conditions or they would walk.

One's least beneficial but still acceptable outcome in the negotiation, also called LAA (Least Acceptable Alternative).

The goal in any negotiation process is to come to an agreement that will suit you, so it's important to define your walkaway beforehand.

Also called the "bargaining range", all possible outcomes where an agreement can be reached and is more beneficial to all parties than any other alternative.

Both parties are very flexible on their demands, so the ZOPA is quite broad.