What are distributive bargaining strategies?
Distributive bargaining refers to the process of dividing up the resource or array of resources that parties have identified. In many negotiations, that means haggling over issues such as price. By comparison, integrative bargaining involves collaboration or integrating across multiple issues to create new sources of value.
- Estimate their bottom line - Most negotiators understand the value of evaluating their own bottom line—the least amount they would accept before walking away from the bargaining table. But we often overlook the importance of estimating our counterpart’s bottom line. To do so, research the other party’s bargaining strength and interests, which may include examining the outcomes of her past negotiations and her likely best alternative to a negotiated agreement (BATNA). Once at the table, ask lots of questions to determine her interests and constraints as well.
- Set high aspirations. Another important part of your negotiation preparation is to set an ambitious yet realistic aspiration level or goal. That doesn’t mean making outrageous demands; rather, prepare arguments that will make your ambitious aspirations seem reasonable.
- Anchor aggressively. The negotiator who makes the opening offer in a price negotiation typically gets the better deal, considerable negotiation research shows. Why? Because of the first figure named in a negotiation “anchors” the discussion that follows. If you are well informed about the value of the commodity you’re negotiating, prepare to drop an ambitious first anchor.
- Identify a strong BATNA. When you have a strong BATNA, you will be in a good position to reject a mediocre agreement. As a result, a strong BATNA is typically your best source of power in a negotiation. After identifying your BATNA, you should take steps to improve it, when possible, by conducting negotiations on multiple fronts.