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Negotiation fundamentals
BUS 240 · Oct 2ExampleNever open with a number until you know their walk-away point — whoever anchors first only wins when they're informed.
1. The three numbers in every negotiation
- BATNA — your best move if this deal dies. It sets your real floor.
- Reservation price — the worst deal you'd still sign.
- ZOPA — the overlap between their ceiling and your floor. No overlap, no deal.
The professor kept repeating "a strong BATNA is worth more than a strong argument" — expect a case question on it.
2. Claiming vs creating value
| Move | What it does | Use it when |
|---|---|---|
| Anchor high | Shifts the midpoint | You have solid market data |
| Trade issues | Grows the pie | Priorities differ on each side |
| Silence | Invites them to bid against themselves | Right after their offer |
Vertical axis: Joint value
Distributive (fixed pie)
- One issue, usually price
- Concessions
- Relationship often costs
Integrative (grow the pie)
- Several issues, different priorities
- Trades
- Relationship usually improves
"Split the difference" is not a strategy — it rewards whoever anchored more aggressively.
Then it tests you
Say the answer out loud, get told what you missed
Questions come from your own lecture, one at a time. Answer by speaking or typing, and you get back what you covered, what you left out, and any idea you've quietly got backwards.
Question 3 of 8
ExampleBATNA
In your own words, what is a BATNA and how should it change the way you negotiate?
It's your backup plan if the deal doesn't happen, so if it's a good one you can push harder and walk away.
You've got the definition and why leverage comes from it — that's the core of it. What's missing is how it sets the number you should refuse to go below.
A BATNA is your fallback if the deal falls through
A strong fallback lets you walk away
Missing: Your BATNA sets the worst deal you should accept
Worth fixing: you treated your BATNA as your opening ask — it's your walk-away floor, and you normally open well above it.
Over the term
A clear read on every course
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Your courses
ExampleBUS 240
Negotiation fundamentals
MKT 215
Professional selling
ENTR 301
Entrepreneurship
Lecture by lecture
Anchoring and concessions
Oct 2
Handling objections
Oct 1
Market sizing: TAM, SAM, SOM
Sep 29
Qualifying a lead
Sep 27
Concepts
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