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.

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Business Negotiation Skills: How to Deal with a Failing Business Partnership

PON Staff   •  09/29/2022   •  Filed in Business Negotiations

business negotiation

It had seemed like the beginning of a fruitful relationship. In April 2012, six wealthy businessmen teamed up to buy the Philadelphia Inquirer and several affiliated businesses for $61.1 million, promising to work together to reverse the newspaper’s flagging fortunes. Their infusions of cash and appointment of a Pulitzer Prize–winning reporter, William K. Marimow, as … Learn More About This Program 

5 Ways to Be a More Strategic Business Partner

PON Staff   •  08/25/2022   •  Filed in Business Negotiations

strategic business partner

If you’re looking to be a strategic business partner, you need to have your eyes and ears open at all times.

In the world of mergers and acquisitions, some acquirers try to improve the companies they purchase by expanding them and emphasizing innovation, while others choose to focus on cutting costs. Due in part to millennials’ … Read 5 Ways to Be a More Strategic Business Partner 

Dear Negotiation Coach: Which Negotiation Closing Techniques Will Get Me To The Finish Line?

PON Staff   •  08/23/2022   •  Filed in Business Negotiations

negotiation closing techniques

When it seems we are on the cusp of closing a deal, we sometimes overlook the fact that there are still a number of important issues to address. Before rushing to a conclusion that your counterpart might not be ready for, consider one of the best closing negotiation techniques: taking a step back. We spoke … Learn More About This Program 

When Business Negotiation Tactics Fail

PON Staff   •  07/14/2022   •  Filed in Business Negotiations

business negotiation tactics

When business negotiation tactics fail to consider outside interests, especially in the case of international mergers, deals can fall apart quickly. Automakers Renault and Fiat Chrysler discovered this when they ignored other stakeholders in an ill-fated attempt at a deal.

The idea of a merger was sparked because of tightening global competition and demand for new … Read When Business Negotiation Tactics Fail 

In Business Negotiations, Eat Before You Negotiate

Katie Shonk   •  07/11/2022   •  Filed in Business Negotiations

business negotiations

When preparing for your next business negotiation, you may want to strategize not only about what you’ll put on the bargaining table, but also how much food you’ll put in your belly beforehand. That’s the message of new research that Cornell University professor Emily Zitek and Dartmouth College professor Alexander Jordan presented at the annual … Learn More About This Program 

Win-Win Bargaining: Private Negotiation, Public Auction, or Both?

PON Staff   •  07/07/2022   •  Filed in Business Negotiations

win win bargaining

When Amazon and Apple each began scouting locations for a new campus in 2017, we might have expected them to follow similar negotiating strategies aimed at win-win bargaining. In fact, their searches were very different:

Amazon set off a frenzy in September 2017 when it announced it was soliciting bids from cities interested in hosting its second … Learn More About This Program 

Should Salary Expectations Be a Laughing Matter?

PON Staff   •  06/30/2022   •  Filed in Business Negotiations

salary expectations

In salary negotiations, job candidates are often at a disadvantage relative to the hiring organization. Due to the well-documented anchoring effect, the first figure introduced into the discussion tends to strongly influence the salary expectations. Unfortunately for candidates, the first figure mentioned in a negotiation often is not in their favor.

For example, when opening salary … Read Should Salary Expectations Be a Laughing Matter? 

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