Business Negotiations

Effective business negotiation is a core leadership and management skill. This is the ability to negotiate effectively in a wide range of business contexts, including dealmaking, employment discussions, corporate team building, labor/management talks, contracts, handling disputes, employee compensation, business acquisitions, vendor pricing and sales, real estate leases, and the fulfillment of contract obligations. Business negotiation is critical to be creative in any negotiation in a business setting. Business negotiation strategies include breaking the problem into smaller parts, considering unusual deal terms, and having your side brainstorm new ideas.

Leveraging the contrast effect is also a powerful tool in negotiations. You might ask for more than you realistically expect, accept rejection, and then shade your offer downward. Your counterpart is likely to find a reasonable offer even more appealing after rejecting an offer that’s out of the question. Additionally, offering several equivalent offers that aim higher than your counterpart is likely to accept will elicit reactions that can help you frame a subsequent set that, thanks in part to the contrast effect, are more likely to hit the mark.

Building a team is critical to negotiations in business. To prevent conflicts among diverse, strong-minded team members from overshadowing group goals, negotiation teams should spend at least twice as much time preparing for upcoming talks as they expect to spend at the table. Because the other side will be ready and willing to exploit any chinks in your team’s armor, it’s important to hash out your differences in advance.

Other business negotiation tips include curbing overconfidence, creating value in the negotiation, establishing a powerful BATNA, effective use of emotions at the bargaining table, caucusing, delineating your zone of possible agreement, and other skills geared toward an integrative bargaining outcome rather than a distributive, or haggling, bargaining outcome.

In addition, considering the ethical and legal repercussions of a deal to insure that it is a true win-win is the hallmark of every experienced business negotiator.

Articles include many business negotiation examples, and explore concepts such as creative dealmaking, renegotiating unfavorable deals, seeking advice from a negotiation opponent, identifying a solid BATNA and crafting draft agreements.

In the Negotiation Planning Process, to Capture the Force, be Patient

PON Staff   •  08/05/2021   •  Filed in Business Negotiations

negotiation planning process

Sometimes the negotiation planning process will take longer than expected to get the best results.

On October 30, 2012, Robert A. Iger, CEO of the Walt Disney Company, announced that Disney was acquiring Lucasfilm, the film-production company known primarily for the spectacularly successful Star Wars film franchise. Following lengthy negotiations, George Lucas, Lucasfilm’s founder and sole … Read More 

The Importance of Negotiation in Business and Your Career

Katie Shonk   •  08/05/2021   •  Filed in Business Negotiations

What are the essential ingredients to getting ahead in the workplace? Hard work, communication skills, and a generous dose of luck all play a role, of course. Another key ingredient—one that is often overlooked—is the ability to recognize and capitalize on opportunities to negotiate for your career success. Why is negotiation in business important? Because … Read More 

Hardball Negotiation Tactics: Time Pressure in Major League Baseball

PON Staff   •  08/02/2021   •  Filed in Business Negotiations

Major League Baseball (MLB) games are known for their leisurely pacing. In recent years, off-season negotiations between teams and free agents have sometimes proceeded at a similarly glacial rate, to the consternation of players. Changing power dynamics have led teams to resort to hardball negotiation tactics, such as dragging out talks. As a result, players … Read More 

Negotiation Examples in Real Life: Buying a Home

PON Staff   •  07/26/2021   •  Filed in Business Negotiations

While many of our articles discuss negotiation theory and the latest research, sometimes it helps to discuss negotiation examples in real life when offering negotiation tips and advice. The following negotiation example is based on bargaining in real estate, a negotiation scenario many of us may face in our lifetime. … Read More 

Negotiation Preparation Strategies

Katie Shonk   •  07/22/2021   •  Filed in Business Negotiations

When an important negotiation is looming, “winging it” is never the answer. The best negotiators engage in thorough negotiation preparation. That means taking plenty of time to analyze what you want, your bargaining position, and the other side’s likely wants and alternatives. … Read More