There are lots of areas of importance in a negotiation. This five part series will focus on the value of being clear about each of the five parts to creating and staying with an effective range. What is a range? Many negotiators focus only on the monetary aspect when thinking about their range. We encourage using this same principle in any area in which concessions will be traded. In addition to a range for dollars, additional examples for application are: service hours included, delivery times, percentages… Be creative! And, always think mutuality-based, win-win.
There are five interactive areas that make up the range: the Wish, the Aspiration, the Bottom Line, the BATNA, and the WATNA.
Power of the WISH
As we wrote in Part One of this series, a range has a top and bottom to it. Many negotiators on either side of the sale start with a figure that is too low. Example – Selling a House. The seller creates a range of asking $350,000 to the bottom line of $335,000. The way the Wish works is to think outside the box of reason when doing the preparation: this figure is never revealed to the other party. In the ideal world, what could you get for the house? “Ah, I would really like to get $375,000!” Well that is a little unrealistic but now he/she is thinking bigger. They may now start their range at $360,000 instead of $350,000. You will never get $350,000 if you start at $350,000. Create more give and take room.
Power of the Aspiration:
When you allow the Wish to be BIG, then your starting point will be bigger. In negotiations, the amount of money (and other concessions) left on the table because we start with a figure that is too low (for sales) or two high (buying) is incalculable. In negotiations, the Aspiration needs to be realistic but the “biggest realistic” number or amount you can go before offending the other party. In this case, the seller’s Aspiration is $360,000.
Want to learn more about negotiation skills and the key elements of range? Stay tuned for parts 3, 4 and 5 of this series on creating range in your next negotiation. All five of these elements work together in successful negotiations. Look for future posts about the other three elements to broaden your negotiation skills. Use all of the negotiation tools and you will be much more successful in getting what you want in negotiations (while ensuring other parties are content too). For more information about negotiations skills or negotiations training courses please visit https://boldnewdirections.com or www.negotiationstraininginstitute.com today.
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About The Author: Jim Hornickel is co-founder of Bold New Directions, a transformational learning company that works with companies to transform people and performance through training solutions including seminars, webinars, coaching and keynote events. Bold New Directions specializes in training solutions that build leadership skills, communication skills and resilience at work. Jim leads dynamic workshops that help professionals grow their negotiation skills. You can learn more about Jim Hornickel and the topic of Negotiations Training at Bold New Directions by visiting the company web site at www.boldnewdirections.com or at our negotiations training site www.negotiationstraininginstitute.com