Topics to be Negotiated

It is important to include the negotiation topics in the agenda, but the company preparing for the negotiations should also decide the order and scope of each topic.

In this example, price is considered the fourth most important topic, after feature, performance, and after-sale support.

Range

When determining a price, it’s better to establish a range rather than a fixed number. This range should be calculated thoughtfully and include optimistic, realistic, and walk-away values. This allows for flexibility during negotiations and can help reduce emotional reactions. Setting a walk-away price beforehand can also aid in keeping emotions in check during negotiations.

BATNA

When considering the topics to be negotiated, it is important to determine the Best Alternative to a Negotiated Agreement (BATNA) beforehand. If a mutually beneficial agreement cannot be reached, it may be beneficial for both parties to pause negotiations, reassess their positions, and resume discussions at a later time.

Rank

To avoid surprises and promote effective negotiations, it’s important to try to understand the topics and ranking that the other party will be using. These rankings will also come into play during the actual negotiation process.