Category Archives: Negotiation Skills

Part 4 – The Power Of the BATNA in Negotiation Skills

Many people think that negotiating is filled with underhanded tactics and strategies. In reality negotiations can be a positive and productive process. This five part series uncovers the value of key elements in the negotiations process – specifically the negotiations range. You may ask “what is the 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. Earlier articles in the series focused on the power of the Wish, the Aspiration and the Bottom Line. Join us here in unraveling the complexity of the BATNA as it relates to the sale of a house.

Power of the BATNA:

BATNA stands for the Best Alternative to a Negotiated Agreement. The BATNA is useful when the negotiation has ended without a deal. In negotiations, the BATNA is the best guard you can have to never going past your Bottom Line. Why? Because when you negotiation with a BATNA you have alternatives. You have options. When you have alternatives in negotiations, you need not ever again feel pressured into going past what you said were your limits. You will negotiate knowing you can turn to your alternatives. (And the more alternatives the better). In this case, an alternative for the buyer is that he/she sells to someone else. Another is to be okay with keeping the house on the market longer.

How to Learn More:

Want to learn more about negotiation skills and the key elements of range? Stay tuned for part 5 of this series on creating range in your next round of negotiations. All five of these elements work together in ensuring masterful negotiation outcomes. Look for future articles regarding the other three elements to broaden your negotiations 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 happy 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

The Power of Bottom Line in Negotiations

There are lots of areas of importance in a negotiation. This is part 3 in a five part series which focuses on the being clear about each of the five parts to creating and staying with an effective range. There are five interactive areas that make up the range: the Wish, the Aspiration, the Bottom Line, the BATNA, and the WATNA. See Parts 1 and 2 to learn about the Power of the Wish and Power of the Aspiration.

The Power of the Bottom Line:
The Bottom Line in negotiations is the least you will accept as a seller or the most you will pay as a buyer. I have asked hundreds of people in our Bold New Directions training programs if they have ever gone past their Bottom Line. 90% of people have in past negotiations. There is a reason it is called the Bottom Line. You have to do your prep work fully to know what your limits are prior to any negotiation. And if you have a limit, make sure it is your limit. In this case of negotiation, the limit is $335,000 from the seller’s perspective.

How to Learn More:
Want to learn more about negotiation skills and the key elements of range? Stay tuned for parts 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

The Power of Aspiration in Negotiations

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

The Wish – A Key Element in Successful Negotiations

There are lots of areas of importance in a negotiation. This article will focus on the value of being clear about the 5 parts to creating and staying with an effective range in your negotiations. What is a range? Many negotiators focus only on the monetary aspect when thinking about their range in a negotiation. We encourage using this same principle in any area of negotiations 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 in your negotiations! And, always think mutuality-based, win-win.  This approach to negotiations is one of your most powerful skills.

 There are five interactive areas that make up the range in all negotiations.  Today’s article focuses on the first part – The Wish. 

Power of the WISH:

1) In negotiations, 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 in negotiations 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 in each negotiation by thinking of your wish.

 All five of these elements work together in successful negotiations. Look for future posts about the other four elements to broaden your negotiation skills.  Use all of the tools and you will be much more successful in getting what you want in negotiations. For more information about negotiation skills training or negotiations training courses visit https://boldnewdirections.com or www.negotiationstraininginstitute.com

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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

Article Source: Jim Hornickel Expert Author at EzineArticles.com