Negotiation Space

Everyday Negotiations In Business and In Life: -- Observations -- Tips -- Insights -- Techniques

Saturday, March 10, 2007

Why Bother?

Often we are asked, "Why bother with all this negotiating stuff? Just lay your offer on the table; they will either accept it or they won't." If the world were perfect and everyone thought the same way, this would be a very efficient approach.

In negotiations involved in long-term relationships, we hope to achieve satisfaction, not only from the outcome, but from the process of negotiation.

Richard Shell, in his wonderful book, Bargaining for Advantage, cites a study where three variables strategies were tested:

1. Start high, then refuse to move.

2. Start moderately, then refuse to move.

3. Start high, then gradually concede to the moderate point.

"The last strategy was the most successful by far. More agreements were concluded using this strategy. The parties employing the third strategy made more money per transaction than did those using the first two. And, the people who faced negotiators using the third strategy reported much higher levels of satisfaction with their agreements than did people who faced those who refused to move."

Shell concludes, "Concessions are the language of cooperation."

Jim Sauerwein

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