Elena's Movie Review Madness

Reviews from my 11-year old mind!

If the numbers were reversed and the buyer had set a booking price of $250,000, whereas the seller had set a booking price of $275,000, there would be no ZOPA – no overlap in the areas where they would accept. An agreement would not be possible, regardless of the skill of the negotiators, unless there are other valuables to consider – or the booking prices of one or both parties have been changed. We start with a horizontal price axis. If we move from left to right along the line, the price goes up. We must now define the area in which both the seller and the buyer operate. Above the price axis, we will identify the seller. When creating the range of sellers, we are interested in two important information. The first is the desired price. If everything came in favour of the seller, what figure does the seller want to achieve realistically? The second piece of information is how far the seller will go.

This visit is usually associated with its BATNA (Best Alternative to a Negotiated Agreement) protocol, which we will discuss in next week`s article. With these two pieces, we can create a range of possible price sellers. Below the price axis, we will do the same for the buyer, again with two information: 1) At what price will the buyer leave? and 2) What is the desired price that the buyer wants to pay? Thanks to a rational analysis of ZOPA in business negotiations, you will be better equipped to avoid pitfalls, to reach an agreement and to consider the negotiations as a cake to share. The seller wants to receive the maximum amount possible for his proposal, but can usually set a limit for the smallest amount he accepts. The lowest amount they accept is called the seller`s “booking price.” This is the amount where they draw the boundary, also known as “follow the road” from the point of agreement. A ZOPA exists if there is a horse between the price of booking each part (below). A negative trading area is when there is no overlap. With a negative bargaining area, both parties can (and should) leave. Your zopa analysis should begin with a review of your best alternative to a negotiated deal or BATNA, write Roger Fisher, William Ury and Bruce Patton in their groundbreaking negotiating text Getting to Yes: Negotiating Agreement Without Giving In. Your BATNA is the approach you would take if you did not reach an agreement in the ongoing negotiations. For example, if you want to accept as much as $70,000 a year for a specific job offer, your BATNA, if you cannot negotiate that salary, may consist of accepting another job, looking for other opportunities or returning to school. The horse zone or zopa is between 25,000 and 27,000, which is the comfort zone in which the two parties can agree.

Even if Fiona convinces Gerald to enter her seller`s range, she could still choose to get a better offer from someone else.

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