Business Negotiation English

2026.10.07

01.Preparing for the negotiation

  • Knowing your needs
  • Setting objectives
  • Using BATNA

1. Knowing your needs

Sally: I’m a little nervous about meeting with my customer tomorrow. He’s a really tough negotiator. I want to be well prepared, but I don’t know where to start.

Jim: Well, the first thing you need to do is know your needs. What’s important to you? Think about the key factors in the negotiation and prioritize them.

Rank the factors for choosing a restaurant in order of importance.

FactorsRankingReason
1.Service
2.Food
3.Price
4.Atmosphere
  1. Hiring someone: education, experience, connections, attitude
  2. Being a good manager: people skills, technical skills, experience, charisma
  3. Buying a new house: price, location, design, neighborhood

2. Setting objectives

Another important thing to consider in a negotiation is what you can and can’t give up.

Matching

Definitions
  1. the price the buyer would be happiest with
  2. the highest price the buyer would pay
  3. the price the buyer expects to pay
  1. the lowest price the seller will accept
  2. the price the seller would be happiest with
  3. the price the seller expects to receive
Buyer’s
  1. top-line objective
  2. target objective
  3. bottom-line objective
Seller’s
  1. top-line objective
  2. target objective
  3. bottom-line objective
SituationTop-line objectiveTarget objectiveBottom-line objective
A. You are negotiating to buy your partner’s .
B. You are negotiating to sell your .

3. Using BATNA

Your BATNA or Best Alternative To a Negotiated Agreement is one way you can prepare for a negotiation. Your BATNA is a “fall back” position when you can’t reach an agreement. Knowing your BATNA will strengthen your position and give you confidence when negotiating.

Track 1

Listen to Liz create her BATNA.

Figure out your BATNA.

  1. Negotiating with HR to receive financial support for English lessons.
  2. Negotiating with your boss for an extension on a deadline for a project.
  3. Think of your own example.

4. Putting it all together

Role A: customer

You are at a second-hand store shopping for a used watch. You see a watch that you like, but there is no price tag on it. You’ve seen similar new models of the same watch for about $5,000. The watch looks a little dirty, but you can’t find any major damage on it. You only have $1,000 in cash, but you also have a credit card. Set your three objectives, create your BATNA, and negotiate with the sales clerk for the watch.

Role B: sales clerk

You work at a second-hand store. A wealthy-looking customer seems very interested in one of the watches on display. The watch is about five years old, but it’s in perfect condition. A brand-new one of the same kind sells for about $6,000. You don’t have a price tag on the watch, but you think it’s valued at about $3,500. You are willing to give a bigger discount for cash purchases. Set your three objectives, create your BATNA, and negotiate with the customer.

Tip!

When preparing for your negotiation, make sure you know what you want, what you don’t want, and what you can give.

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