Negotiation is a process by which two or more people (or groups) resolve an issue or come to a better outcome through compromise. Negotiation is a way to avoid arguing and come to an agreement with which both parties feel satisfied. 

Negotiation can be used by a variety of groups in a variety of situations—for instance, between individuals at a market looking to get a lower price, between small businesses looking to merge organizations, or between governments who want to come to a peace agreement. In your daily life, [you may find yourself at work in salary](https://www.masterclass.com/articles/how-to-negotiate-a-salary) or contract negotiations. Negotiation strategies are also a great tool for conflict management and problem-solving—even in your personal life.

There are two possible types of negotiation:

1. __Distributive negotiation__: Also sometimes called “hard bargaining,” distributive negotiation is when both parties take an extreme position and one side’s win is believed to be the other side’s loss (a win-lose solution). This operates on a “fixed pie” principle, in which there is only a set amount of value in the negotiation, and one side will walk away with the better deal. Examples include haggling prices in real estate or at a car dealership.
2. __Integrative negotiation__: Parties engaging in integrative negotiation don’t believe in a fixed pie, instead asserting that both sides can create value or mutual gains by offering trade-offs and reframing the problem so that everyone can walk away with a win-win solution. 

You don’t need to go to business school to become a skilled negotiator. Here are a few negotiating tactics to help you right now: 

1. __Rank your priorities__. One key to effective negotiation is knowing what you want—so come prepared with a list of every variable of the negotiation and how important it is to you. A common piece of advice is to share this list with the other party. This builds trust. When you both compare your priorities and clearly see the trade-offs, you can come to an agreement more smoothly than if you treat every piece of information as a bargaining chip.
2. __Come prepared with a BATNA__. What if you just can’t come up with a good compromise? A BATNA, or a “best alternative to a negotiated agreement,” is a vital way to prepare for a negotiation. It’s your plan B if you just can’t reach an agreement. Prepare a BATNA ahead of time so that you’re not stuck in the negotiation having to accept an offer that’s just not worth it. 
3. __Make the first offer__. It may seem counterintuitive to be the one to make the first offer—after all, information is a bargaining chip, isn’t it?—but the first offer is actually a key jumping-off point for a negotiation. The opening offer serves as an immediate common ground for both parties and has an “anchoring effect.” In essence, when the first offer is placed on the bargaining table, both parties will immediately start to work around it. It’s also important that you understand this tactic when someone else uses it; if their opening offer is completely unreasonable, don’t let the anchoring effect prevent you from scrapping it and reframing the negotiation with your own opening offer. 
4. __Make counter-offers__. Parties will walk away more satisfied if some back-and-forth happened during the negotiation—if you accept their opening offer, for example, they might start to feel suspicious or like they should have started higher. Even if you’re satisfied with an early offer, don’t be afraid to make a counter-offer to allow the dealing to feel like a successful negotiation. 
5. __Stay calm and collected__. Emotions get in the way of negotiation skills because they prevent you from thinking objectively and being flexible. Everything, from your tone of voice to your body language, should be neutral and free of strong emotions—this will always lead to better outcomes than if you let your ego into the room. 
6. __Recognize hardball tactics__. During the negotiation process, the other side may be willing to resort to hard-bargaining tactics to get the upper hand. A great way to prepare yourself against these is to be able to recognize them—that way you’re not at their mercy when it happens. For instance, other negotiators may use a “good cop, bad cop” routine to unite you with one person against the other, or they may try a “take it or leave it” strategy to make you think they’re not able to make concessions. These are strategies designed to make you feel like you have less power, but a good negotiation should always involve give and take.

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Understanding the art of negotiating is a key skill that everyone needs, whether you’re engaging in business negotiations or haggling at a dealership. In order to get the ideal outcome, here are some successful negotiation strategies that will help you achieve your own goals—while maintaining strong relationships with the people and organizations around you. 


Understanding the art of negotiating is a key skill that everyone needs, whether you’re engaging in business negotiations or haggling at a dealership. In order to get the ideal outcome, here are some successful negotiation strategies that will help you achieve your own goals—while maintaining strong relationships with the people and organizations around you. 


6 Tactics to Help You Become a Better Negotiator

Negotiation is a process by which two or more people (or groups) resolve an issue or come to a better outcome through compromise. Negotiation is a way to avoid arguing and come to an agreement with which both parties feel satisfied. Negotiation can be used by a variety of groups in a variety of situations—for instance, between individuals at a market looking to get a lower price, between small businesses looking to merge organizations, or between governments who want to come to a peace agreement. In your daily life, <a href='https://www.masterclass.com/articles/how-to-negotiate-a-salary' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-negotiate-a-salary","linkCopy":"you may find yourself at work in salary","category":null}'>you may find yourself at work in salary</a> or contract negotiations. Negotiation strategies are also a great tool for conflict management and problem-solving—even in your personal life.

What Is Negotiation?

There are two possible types of negotiation:<ol class="mc-m-4"><li class="mc-my-4"> 1. Distributive negotiation: Also sometimes called “hard bargaining,” distributive negotiation is when both parties take an extreme position and one side’s win is believed to be the other side’s loss (a win-lose solution). This operates on a “fixed pie” principle, in which there is only a set amount of value in the negotiation, and one side will walk away with the better deal. Examples include haggling prices in real estate or at a car dealership. </li><li class="mc-my-4"> 2. Integrative negotiation: Parties engaging in integrative negotiation don’t believe in a fixed pie, instead asserting that both sides can create value or mutual gains by offering trade-offs and reframing the problem so that everyone can walk away with a win-win solution. </li></ol>

The 2 Types of Negotiation

You don’t need to go to business school to become a skilled negotiator. Here are a few negotiating tactics to help you right now: <ol class="mc-m-4"><li class="mc-my-4"> 1. Rank your priorities. One key to effective negotiation is knowing what you want—so come prepared with a list of every variable of the negotiation and how important it is to you. A common piece of advice is to share this list with the other party. This builds trust. When you both compare your priorities and clearly see the trade-offs, you can come to an agreement more smoothly than if you treat every piece of information as a bargaining chip. </li><li class="mc-my-4"> 2. Come prepared with a BATNA. What if you just can’t come up with a good compromise? A BATNA, or a “best alternative to a negotiated agreement,” is a vital way to prepare for a negotiation. It’s your plan B if you just can’t reach an agreement. Prepare a BATNA ahead of time so that you’re not stuck in the negotiation having to accept an offer that’s just not worth it. </li><li class="mc-my-4"> 3. Make the first offer. It may seem counterintuitive to be the one to make the first offer—after all, information is a bargaining chip, isn’t it?—but the first offer is actually a key jumping-off point for a negotiation. The opening offer serves as an immediate common ground for both parties and has an “anchoring effect.” In essence, when the first offer is placed on the bargaining table, both parties will immediately start to work around it. It’s also important that you understand this tactic when someone else uses it; if their opening offer is completely unreasonable, don’t let the anchoring effect prevent you from scrapping it and reframing the negotiation with your own opening offer. </li><li class="mc-my-4"> 4. Make counter-offers. Parties will walk away more satisfied if some back-and-forth happened during the negotiation—if you accept their opening offer, for example, they might start to feel suspicious or like they should have started higher. Even if you’re satisfied with an early offer, don’t be afraid to make a counter-offer to allow the dealing to feel like a successful negotiation. </li><li class="mc-my-4"> 5. Stay calm and collected. Emotions get in the way of negotiation skills because they prevent you from thinking objectively and being flexible. Everything, from your tone of voice to your body language, should be neutral and free of strong emotions—this will always lead to better outcomes than if you let your ego into the room. </li><li class="mc-my-4"> 6. Recognize hardball tactics. During the negotiation process, the other side may be willing to resort to hard-bargaining tactics to get the upper hand. A great way to prepare yourself against these is to be able to recognize them—that way you’re not at their mercy when it happens. For instance, other negotiators may use a “good cop, bad cop” routine to unite you with one person against the other, or they may try a “take it or leave it” strategy to make you think they’re not able to make concessions. These are strategies designed to make you feel like you have less power, but a good negotiation should always involve give and take. </li></ol>

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Understanding the art of negotiating is a key skill that everyone needs, whether you’re engaging in business negotiations or haggling at a dealership. In order to get the ideal outcome, here are some successful negotiation strategies that will help you achieve your own goals—while maintaining strong relationships with the people and organizations around you.