Bargaining Stage of the Negotiation Process

Summary

This video delves into the core bargaining stage of negotiation, highlighting essential strategies for reaching agreements. It covers the importance of exploring positions, identifying common ground, and managing sticking points. The video emphasizes the power of asking insightful questions, making counteroffers, and strategically offering concessions. Key tips include maintaining respect, being prepared for setbacks, and using structured processes to keep the negotiation on track. By staying focused and resourceful, negotiators can successfully navigate challenges and create mutually beneficial outcomes.

Takeaways

• 😀 Negotiation is a conflict with good intent and mediated by a structured process.
• 😀 The bargaining stage starts after the opening phase, where both parties express their positions and desires.
• 😀 During the bargaining stage, the goal is to identify common ground (overlapping desires and needs) and sticking points (potential obstacles).
• 😀 Starting with common ground makes it easier to reach agreements on easier issues before tackling more complex topics.
• 😀 Asking genuine questions during the negotiation helps uncover underlying needs and creative solutions.
• 😀 Constantly summarize agreements during the negotiation process to track progress and maintain motivation for both parties.
• 😀 Be cautious of offers that seem too good to be true, as there may be hidden conditions or misunderstandings.
• 😀 If an offer isn't good enough, counteroffer or request a concession, using the 'if you, then we' or 'if we, then you' approach.
• 😀 Concessions should only be made when something of equal value is offered in return, and each concession should be smaller than the previous one.
• 😀 Prepare a list of possible concessions before the negotiation to remain flexible during bargaining.
• 😀 If you get stuck during the negotiation, take a break, reassess the common ground, and use questions or a change of setting to unlock new perspectives.

Q & A

What is the core focus of the bargaining stage in a negotiation?

The core focus of the bargaining stage is for both parties to come together and craft an agreement. It involves understanding each other's positions, finding common ground, and addressing sticking points in a structured, logical, and rational way.

What is the first thing you should focus on during the bargaining stage?

The first thing you should focus on is identifying the common ground between both parties. This includes overlapping desires, needs, and concerns, as it provides a foundation for agreement.

Why is it important to identify sticking points early in the negotiation?

Identifying sticking points early allows you to anticipate potential challenges and address them in a structured and thoughtful way, rather than getting discouraged or caught off guard later.

What is the best approach when you receive an offer that seems too good to be true?

If an offer seems too good to be true, it's important to approach it with caution. You should evaluate it carefully, as it could either be a mistake, have hidden conditions, or be misunderstood. Don't rush to accept it without clarification.

How should you handle a counteroffer in a negotiation?

A good way to handle a counteroffer is by using a collaborative approach. Phrasing counteroffers as questions, such as 'If you were to do this, would you accept that?', makes the negotiation feel more like an inquiry and less like a demand.

What are two principal ways to make counteroffers during a negotiation?

The two principal ways to make counteroffers are: 1) Using the 'If you then we' formulation, where you suggest conditions for the other party in exchange for concessions. 2) Using the 'If we then would you' approach, which frames the offer as a collaborative inquiry.

What should you do before entering a negotiation in terms of concessions?

Before entering a negotiation, it’s important to prepare a list of potential concessions you can ask for and offer. This preparation helps you respond effectively to bargaining and counteroffers that will arise during the process.

What is a good strategy when asked for a concession during a negotiation?

When asked for a concession, always make your first response a defense, not an outright rejection. Acknowledge that it’s a difficult task and that you need time to think about it. This prevents the other party from thinking you are too quick to give in and ensures you don't make concessions too easily.

What is the cardinal rule regarding concessions in a negotiation?

The cardinal rule is that you should only make a concession when you receive something of equal value in return. This ensures the negotiation remains fair and balanced.

How can you manage the concession process to avoid it spiraling out of control?

To manage the concession process, make each concession smaller than the one before. Ideally, each concession should be no more than half the value of the previous one. This helps control the negotiation's direction and prevents it from spiraling out of control.