By name: negotiation-prep description: BATNA, ZOPA, principled negotiation, position vs interests — applied to client / vendor negotiations.
Negotiation Prep
When to use
Before any client SOW negotiation, vendor selection, or settlement of disputes (incl. claims). Also for internal high-stakes negotiations (resourcing, scope).
Core concepts
BATNA (Best Alternative To Negotiated Agreement)
What you'll do if this deal fails. Walk-away point.
- If your BATNA is weak, your negotiation power is weak
- Strengthen BATNA BEFORE the negotiation (other vendors, internal capacity, defer the decision)
- NEVER reveal a weak BATNA
ZOPA (Zone Of Possible Agreement)
The overlap between your acceptable range and the counterparty's acceptable range.
- If no ZOPA exists, no deal is possible — exit gracefully
- Estimating their range is the prep work that wins negotiations
Reservation price
The point beyond which you walk away. Set BEFORE you enter the room. Write it down.
Anchor
The first number on the table. It biases every subsequent number.
- If you go first with a strong anchor, the deal lands closer to you
- If they anchor first and it's outside ZOPA, name it as such; don't negotiate against an absurd anchor
Principled negotiation (Fisher & Ury)
- Separate people from problem. Hard on substance, soft on people.
- Focus on interests, not positions. "Why do you need 30% discount?" → "Because budget is fixed at $X" → solve for the constraint, not the discount.
- Generate options for mutual gain. Brainstorm before evaluating.
- Use objective criteria. Market comps, industry standards, neutral benchmarks.
Position vs interests
| Position (what they say they want) | Interest (why they want it) |
|---|---|
| "We need 50% discount" | Budget constraint OR procurement target OR test of our flexibility |
| "We want a 5-year contract" | Predictability of cost OR vendor stickiness OR exec optics |
| "We must have on-site team" | Cultural fit OR security policy OR distrust of remote |
Always probe for the interest before responding to the position.
Prep checklist (before any negotiation)
- Our BATNA — written, with quantification
- Estimated counterparty BATNA
- Our reservation price — written
- Estimated their reservation price
- ZOPA — explicit range
- Our opening anchor — written, with rationale
- Their likely anchor — anticipate
- Top 3 objective criteria we'll cite
- Their top 3 likely objections + our responses
- Our walk-away script (rehearse it aloud)
- Roles in the room (negotiator / scribe / silent observer)
Tactics worth knowing (defense)
- Good cop / bad cop: Two-person team, one nice, one tough. Recognize and don't over-react.
- Time pressure: Artificial deadlines. Buy time; don't decide under fabricated urgency.
- Lowball / highball: Extreme anchor. Name it; don't counter it.
- Splitting the difference: Sounds fair, often isn't. Insist on objective criteria.
- Authority limit: "I'd like to but my CFO won't approve." Ask to bring decision-makers in next round.
Quality bar
- Walk in with reservation price written down (not in your head)
- Don't make the first concession unilaterally — trade
- Don't accept the first offer even if it's good (signal-management)
- Take a break before any major concession
- Document agreed terms BEFORE leaving the room
Common failure modes
- Negotiating against your own price (offering discounts they didn't ask for)
- Anchoring on a weak number because you're nervous
- Forgetting to silence-after-anchor (whoever speaks first loses)
- Confusing positions with interests
- Losing relationship to "win" the deal