Preparation: 80% is decided before you sit down
Step 1 / 3·The five-step preparation process
0/3 steps done
Learning objectives — after this module you will:
- Prepare using a five-step process
- Understand anchoring and how to defuse it
- Decide when to make the first offer and when not to
The five-step preparation process
Arrive with everything you need.
Strong negotiators don't win by improvising at the table — they win by preparing better than the other side. Thirty minutes of preparation for an important negotiation usually matters more than any conversational technique.
POSITIONS vs INTERESTS
A POSITION is what they SAY they want ('I need a 15% discount'). An INTEREST is what they actually need ('I have to keep this quarter's costs inside budget'). The classic story: two people fight over an orange — one wants the peel for baking, the other the juice. Argue over positions and you split it; ask about interests and both get everything.
Widen the variable list
If a negotiation has only ONE variable (usually price), it's forced to be distributive. Deliberately add variables: payment terms, volume, delivery timing, warranty scope, exclusivity, contract length. More variables means more chances to trade so both sides gain.
Key takeaway: Prepare in five steps; ask about INTERESTS rather than arguing POSITIONS, and widen the variable list.