In a business negotiation, two opposing mistakes are common: reaching an agreement if it was not wise to do so, and moving away from a mutually beneficial outcome. The buyer, on the other hand, wants to pay the lowest possible amount, but can consider a higher amount, which he may also be willing to pay. The maximum amount they are willing to pay is also known as the buyer`s “booking price” or “departure” from the point of transaction. Have you ever wondered what it takes to prepare effectively for the success of the negotiations? An understanding of the possible area of agreement (ZOPA) is crucial for a positive outcome. When there is a ZOPA, an agreement is usually reached. For example, a lender wants to borrow money at a certain interest rate for a certain period of time. A borrower who is willing to pay this payment and accept the repayment period will share a ZOPA with the lender, and both may be able to reach an agreement. Features of negotiation skills include: the ability to prepare and plan, knowledge of the subject matter being negotiated, the ability to think clearly and quickly under pressure and uncertainty, the ability to express thoughts verbally, listening, judgment and general intelligence, integrity, the ability to convince others, patience, determination, consider many options, Being aware of the other person`s process and style, is flexible and thinks and talks about possible areas of agreement. A ZOPA exists when there is an overlap between the booking price of each part (final result). A negative trading area is when there is no overlap. With a negative negotiating zone, both sides can (and should) leave. Avoiding these two dangers – either accepting an below-average deal or moving away from an important deal – starts with thorough preparation for negotiations, including a precise understanding of the area of a possible agreement or ZOPA.

It is a great advantage to know the upper and lower limits of a ZOPA. A negotiator is naturally reluctant to disclose his departure or final outcome, as this is the least attractive deal he would accept before moving away from the negotiation. By knowing the limits of a ZOPA, it is possible to bring your counterpart closer to its limits in order to achieve a cheap deal. In trade negotiations, two opposing mistakes are common: reaching an agreement if it was not wise to do so and moving away from a mutually beneficial outcome. How to avoid these pitfalls? Through careful preparation, which includes an analysis of the possible area of agreement or ZOPA in trade negotiations. . Read More To determine if there is a positive trading area, each party should understand its most unfavorable net income or price. For example, Paul sells his car and refuses to sell it for less than $5,000 (his worst price). .