Negotiation course: where bargaining power comes from
The game theory of one-to-one negotiation: where bargaining power really comes from, and how to use every bit of it.
About this course
In a one-to-one negotiation there is no auction to set the price, so the result depends on bargaining power. This course shows exactly where that power comes from: competition, information, your best alternative, deadlines and the numbers that become focal points.
You will calculate your BATNA and both walk-away points, test whether a zone of agreement exists issue by issue, design a menu that makes the other side reveal their true costs, and negotiate against scripted counterparts who react to what you say.
Who it's for: Buyers, salespeople, account managers and anyone who negotiates one-to-one with a supplier, a client or an employer.
What you'll be able to do
- Separate growing the pie from splitting it, and spot trades that cost you little and give them a lot
- Diagnose where power comes from in a one-to-one deal: competition, information, alternatives, timing and focal points
- Calculate your BATNA, both walk-away points and whether a ZOPA exists, issue by issue
- Design moves that shift power your way: a screening menu, a take-it-or-leave-it offer, a well-timed first number
Syllabus: 9 lessons
Two of you, one pie
Module 1When there are only two of you
A bilateral negotiation has exactly two parties: one buyer, one seller, nobody else at the table. That's all the word means.
The art of sharing
John Nash studied this game in 1953, and it's the simplest model of a split there is. Two players each write down how many of 100 points they want, without seeing the other's number.
Grow the pie before you split it
You can make the pie bigger, or take a bigger slice. Do the first, then the second. Skip the second and the value you created walks out of the door with the other side.
Competition and information
Module 2Competition changes everything
A games retailer holds the sole UK rights to a classic console until its successor arrives. It earns £100 on every unit it sells, and it has pre-sold 30,000 units.
What they know, what you know
You're the buyer. A part is worth 100 to you. The seller's cost is either 22 or 78, and only the seller knows which. You've no idea, and it isn't going to tell you.
Make them reveal it: screening menus
A supplier's unit cost is either 10 (low-cost) or 12 (high-cost). Only the supplier knows which, and it has every reason to keep that to itself.
Alternatives, zones and clocks
Module 3Your best alternative
Your BATNA is your Best Alternative To a Negotiated Agreement: what you'll do if this deal doesn't happen. The better it is, the less you need them.
Finding the zone: ZOPA
For each side, from best to worst: the opening ask (where you start), the target (what you realistically aim for), the walk-away point (the worst deal you'd still sign), and beyond that,…
Clocks and focal points
A buyer and a supplier both know a part costs £8 to make. The buyer won't pay more than £24, or the product won't get built.
Final assessment and certificate
Ten questions on fresh scenarios. Score 7 or more and your certificate is issued straight away.
Questions
How long does the course take?
About 1.9 hours: 9 lessons totalling 107 minutes, plus a 10-minute final assessment. It's self-paced, so you can stop after any lesson and pick up where you left off.
Do I get a certificate?
Yes. Pass the 10-question final assessment (7 out of 10) and you get a certificate of completion with your name and a verification ID. You can retake the assessment as often as you like.
How much does it cost?
£9.89, a one-off payment with lifetime access. Signing up is free, and the first lesson, "When there are only two of you", is free to play before you buy.
Do I need to know any maths?
No. Everything is explained in plain English with small, worked numbers. If you can compare two prices, you can do this course.
How is it taught?
Every lesson is interactive: you play a game, make a choice or move a slider first, then the idea behind it is explained. There are no videos to sit through.