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ANIRUDDHA ADAK
ANIRUDDHA ADAK

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Negotiation – Bargaining Strategies and Process

Distributive (Competitive) Bargaining

Distributive bargaining treats the resources at stake as fixed.

  • Goal: Claim the largest possible share
  • Mindset: “Win–lose,” zero-sum
  • Tactics:
    • Anchoring with extreme first offers
    • Small, incremental concessions
    • Withholding information

Image description


Integrative (Collaborative) Bargaining

Integrative bargaining seeks to expand value so both sides gain.

  • Goal: Create a “win–win” outcome
  • Mindset: Mutual problem-solving
  • Tactics:
    • Sharing interests, not positions
    • Brainstorming multiple options
    • Building trust and long-term relationships

Hands fitting puzzle pieces together


The Five-Step Negotiation Process

  1. Preparation

    • Define clear objectives and priorities
    • Identify your Best Alternative to a Negotiated Agreement (BATNA)
    • Research the other party’s needs and constraints
  2. Information Exchange

    • Open with questions to understand interests
    • Listen actively and take notes
    • Clarify ambiguities before moving on
  3. Proposal & Bargaining

    • Present your first offer strategically
    • Use concessions to signal flexibility
    • Seek trade-offs that create value
  4. Closure

    • Summarize agreed points to confirm understanding
    • Formalize terms in writing or contract
    • Celebrate agreements to reinforce partnership
  5. Follow-Up

    • Monitor implementation of commitments
    • Address any unforeseen issues promptly
    • Nurture the relationship for future negotiations

Handshake sealing a deal


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