Many people believe that prices and deals are set in stone and cannot be changed. But this isn't always the case. Many people are, in reality, adaptable. Negotiating can help you reach an agreement on a number of issues, such as debt reduction, lowering the selling price, improving contract terms, or getting a better offer.

We will cover the following:

  • What is Negotiation?
  • Types of Negotiation
  • Stages of Negotiation Process
  • Advice for Negotiation
  • Summary

What is Negotiation? 🀝

Negotiation is a conversation between two or more people or groups with the aim of achieving a mutually beneficial agreement on one or more issues on which they disagree. Negotiation is an interaction and process between organizations that aim to achieve a mutually beneficial agreement on issues of shared interest while maximizing their own usefulness. This advantageous outcome can benefit all parties involved or only one or a few of them.

To improve their chances of closing agreements, avoiding disputes, maintaining relationships with other parties, and gaining advantage and reciprocal benefits, negotiators must understand the negotiating process and other negotiators. Its goal is to reconcile differences, obtain an advantage for a person or a group, or craft outcomes that satisfy a variety of interests.

Distributive negotiations, also known as a compromise, include presenting a stance and making compromises in order to reach an agreement. The degree to which the negotiating parties trust one another to carry out the agreed-upon solution is a significant determinant of whether or not negotiations are fruitful.

People bargain on a regular basis, often without even realizing it. Negotiation takes place in a variety of settings, like corporations, non-profits, and within and between states, as well as in sales and legal cases, as well as in personal circumstances including marriage, divorce, and parenting.

Types of Negotiation 🧐

There are two forms of negotiations, according to negotiation theorists. The difference between how the two forms are used depends on the negotiator's attitude as well as the situation: one-time meetings with no long-term relationships are more likely to result in distributive negotiations, while long-term relationships are more likely to necessitate integrative negotiating.

#1 Distributive Negotiation πŸ‘‰

Distributive bargaining works on a zero-sum basis, which means that any benefit made by one party comes at the expense of the other. Positional or hard-bargaining negotiation, also known as distributive negotiation or agreement, aims to share a "set pie" of benefits.

As a result of the presumption that one person's benefit is another person's loss, distributive bargaining is often referred to as win-lose. In a distributive negotiation, each party takes an unfair or predetermined position, recognizes that it will not be agreed upon, and then seeks to cede as little as possible until achieving an agreement. Negotiation is viewed by distributive bargainers as a method of sharing a set sum of value.

While all negotiations have a distributive component, distributive negotiations often involve individuals who have never previously interacted and are unlikely to do so in the foreseeable future. For example, haggling costs on the free market, such as the price of a car or a home.

#2 Integrative Negotiation πŸ’ͺ

It's a series of strategies aimed at improving the efficiency and probability of a negotiated agreement by leveraging the fact that different parties value different outcomes differently. While distributive negotiation implies that the parties have a fixed amount of value to divide, integrative negotiation tries to generate value during the negotiation by either "compensating" for the loss of one item with benefits from another, or by creating or reframing the dispute issues in such a way that both parties profit ("win-win" negotiation). Interest-based, merit-based, or principled negotiation are all terms used to describe integrative negotiation.

Even integrative negotiation, on the other hand, is likely to have some distributive elements, especially when the parties value different items equally or when information is left to be allocated at the end of the negotiation. Although concession is a necessary part of any negotiation, research indicates that people who concede quickly are less likely to consider all integrative and mutually beneficial options. As a result, early concessions minimize the likelihood of a successful integrative negotiation.

Stages of Negotiation Process πŸ™„

Negotiators, on the other hand, should not have to risk successful negotiation in order to maintain a good relationship between the parties. Instead of conceding, each side should recognize that the other has their own feelings and motives and use this to their advantage when addressing the topic.

  • Put Yourself In Their Shoes
    People are more likely to seek out evidence that supports their own views while ignoring information that contradicts them. It is important to empathize with the other party's point of view in order to negotiate effectively. One should be open to other points of view and try to see things from their point of view.
  • Discuss Each Other's Perceptions
    Directly discussing each other's perceptions is a more straightforward approach to knowing the other person. Without assigning blame or judgment to the other, each person should freely and honestly share his or her perceptions.
  • Seek for Ways to Behave Contrary to His or Her Beliefs
    It's likely that the other side has preconceived notions and assumptions for you. The other side should behave in a way that clearly contradicts such preconceptions, essentially sending the message that the other party is involved in a collaborative negotiation.
  • Face-Saving
    In a negotiation, this strategy applies to justifying a position based on previously articulated beliefs and values. This solution to a problem is less subjective, and therefore more understandable from the viewpoint of the opposing group.
  • Active Listening
    It entails more than just hearing what the other person has to say. Active listening entails paying careful attention to both verbal and nonverbal communication. It entails asking the individual for clarification on a regular basis. By asking the person precisely what they mean, they may understand you aren't just going through the motions, but are paying attention to them.
  • Speak with Intent
    Too much information can be just as dangerous as not enough. Determine precisely what you want to convey to the other party before starting an important question. Determine the precise reason for which this information will be exchanged.

Advice for Negotiation 😊

Don't ❌

  • Don't make the negotiation into a war. You should avoid being combative. You should maintain a professional demeanour.
  • Don't get too worked up about it. Keep your target in mind and avoid making the negotiation personal.
  • Don't go too far in the negotiation. You should be able to tell when to stick to your guns, when to consider a compromise, and when to walk away.

Do βœ”οΈ

  • Make sure you're specific about your place and what you're looking for.
  • Make sure you understand what the other party is looking for.
  • Be willing to make concessions to the other party's demands; a successful negotiator must be fair.
  • Be sure of what you're looking for and stick to it.
  • Look for ways to gain an advantage over the other party. If you're in wage negotiation, for example, you can eliminate the time factor by saying, "I'll sign right now for $XXX number."


Indeed the best negotiators have trouble making things work at some point. After all, the mechanism necessitates some compromise. Perhaps one party simply refuses to budge and refuses to give in at all. Taking yourself out of the equation allows everyone involved to regroup, and it can help you all return to the negotiating table with a clear head.

So share your thoughts about Negotiation with us at LeadMine.

Janani is a Content Writer at LeadMine. She’s an avid reader and tries to give valuable information and advice on prospect's issues through storytelling and data-driven content.

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