Negotiation Toolkit

Quick Reference for Active Negotiations

Print this chapter or keep it accessible during negotiation preparation.


Pre-Negotiation Checklist

About Me

  • What are my interests (not just positions)?
  • Which interests are non-negotiable?
  • What's my BATNA?
  • What's my reservation point (walk-away)?
  • What's my target/aspiration point?
  • What can I offer that costs me little but matters to them?
  • What concessions am I prepared to make?
  • What will I ask for in return for each concession?

About Them

  • What are their likely interests?
  • What pressures or constraints do they face?
  • What's their probable BATNA?
  • Who is the decision-maker?
  • What's their negotiating style?

About the Deal

  • What objective criteria apply (market rates, precedents)?
  • What issues are on the table?
  • Where might we create value?
  • What's the timeline?
  • What tactics might they use?

Core Principles

PrincipleMeaning
Separate people from problemsAttack the issue, not the person
Focus on interestsAsk why, not just what
Generate optionsBrainstorm before deciding
Use objective criteriaAnchor to fair standards
Know your BATNAYour power comes from alternatives

Key Numbers to Know

Before negotiating, fill in:

ItemYour Number
Your target (aspiration point)__________
Your bottom line (reservation point)__________
Your opening offer__________
Your BATNA value__________
Market rate / fair value__________

Useful Phrases

Opening

"Before we discuss numbers, help me understand what's most important to you."

"I'm looking for something in the range of $X to $Y."

"Based on my research, $X seems fair for this."

Asking Why

"Help me understand why that's important."

"What's driving that number?"

"What would need to be true for you to be flexible on that?"

Making Offers

"I'm proposing $X, based on [rationale]."

"I could accept that if we could also include [something else]."

Responding to Offers

"I appreciate the offer. I was expecting something closer to $X."

"That's quite far from what I had in mind. Can you walk me through how you arrived at that?"

Countering Tactics

"It seems like there's time pressure here. What happens after the deadline?"

"I'd like to continue, but I need a respectful conversation."

"Let's focus on the data rather than positions."

Concessions

"In the interest of reaching agreement, I can move to $X — but I'd need [something in return]."

"That's a significant concession for me. What can you offer on [other issue]?"

When Stuck

"Let's step back. What are we each really trying to achieve?"

"Can we take a break and return to this fresh?"

"What if we approached this differently?"

Closing

"If we can agree on $X, do we have a deal?"

"I'm prepared to commit today if we can finalize these terms."


Tactic Recognition

TacticWhat It Looks LikeResponse
AnchoringExtreme first offerRe-anchor with your own number
Time pressureArtificial deadlineVerify; ask what happens after
Good cop / bad copOne harsh, one friendlyAddress as a unit
Limited authority"My boss won't approve"Ask to meet the decision-maker
The flinchDramatic reactionStay calm; ask questions
SilenceNot responding after your offerWait; don't fill the silence
The nibbleExtra asks after agreementSay no or ask for something
Take it or leave it"Final offer"Test it; often not final

Concession Strategy

Rules:

  1. Never concede without getting something
  2. Concede slowly
  3. Make concessions smaller over time
  4. Know your concessions in advance

Pattern:

  • First concession: Largest
  • Second: Smaller
  • Third: Even smaller
  • Final: Minimal ("I've moved as far as I can")

Value Creation Checklist

  • Do we value things differently? (trade opportunities)
  • Can we add issues to the negotiation?
  • Are there contingent arrangements that would help?
  • Can we adjust timing or terms?
  • Are there non-monetary elements of value?
  • What costs me little but helps them?
  • What costs them little but helps me?

When to Walk Away

Walk away if:

  • Their best offer is worse than your BATNA
  • They're negotiating in bad faith
  • Trust has broken down completely
  • The deal isn't good for you

Walk away gracefully: "It doesn't seem like we can find terms that work for both of us. I appreciate your time."

Leave the door open: "If circumstances change, I'd be happy to revisit this."


Post-Negotiation Review

After every significant negotiation, ask:

  1. Did I achieve my key objectives?
  2. What did I do well?
  3. What would I do differently?
  4. What did I learn about them?
  5. What did I learn about myself?
  6. What patterns am I noticing?

Quick AI Prompts

Full prep: "Help me prepare a negotiation strategy for [situation]."

Role-play: "Let's practice my negotiation. You play [other party]. Start as if we're opening the discussion."

Tactic response: "They said [quote]. How should I respond?"

Offer analysis: "Analyze this offer: [details]. What should I counter with?"

Script help: "Write a script for me to [ask for raise / counter their offer / etc.]."


The Essentials

  1. Prepare — The work happens before the conversation
  2. Know your BATNA — Your power comes from alternatives
  3. Understand interests — Yours and theirs
  4. Create value — Expand the pie before dividing it
  5. Stay principled — Hard on problems, soft on people
  6. Be willing to walk — No deal is better than a bad deal