Negotiation Terms Definition
When it comes to negotiation, there are a lot of terms that get thrown around. It can be difficult to keep track of what each one means, especially when you’re in the middle of trying to reach an agreement. To help you out, we’ve compiled a list of some of the most commonly used negotiation terms and their definitions.
BATNA: This stands for ‘best alternative to a negotiated agreement.’ Basically, it’s your Plan B if negotiations fall through. Knowing your BATNA can help you determine your bottom line and walk away from the negotiating table if necessary.
Concession: A concession is anything that you’re willing to give up in order to reach an agreement. For example, you might concede on price in exchange for a shorter delivery time.
Deadline: This is the date or time by which an agreement must be reached. Having a deadline can help motivate both parties to come to an agreement before it’s too late.
Demand: A demand is anything that you’re asking for in the negotiation. It’s important to start with your most important demands first so that you have room to compromise later on.
Fixed-pie assumption: This is the belief that there is a limited amount of resources available and that any gains made by one party will come at the expense of the other party. This assumption often leads to competitive rather than cooperative negotiation styles.
