If the parties to the negotiations fail to reach the ZOPA, they are in a negative negotiating area. An agreement cannot be reached in a negative negotiating area, as the needs and wishes of all parties cannot be met by an agreement reached in such circumstances. As the master`s course in negotiation has shown, interaction in a negotiation is to shape the perception of ZOPA through conviction and other tactical measures, as this will lead to an agreement. Negotiations are complex, many factors contribute to the end result, but they must not be a painful experience. A good preparation and understanding of the main negotiating concepts and strategies can help you get maximum benefits in the agreements you conclude. This text is a slightly modified excerpt from the book “The Art of Wage Negotiation,” by Conrad Pramb-ck. He is CEO of Upstyle-Consulting, which specializes in advising companies and individuals on salaries and is one of the salary experts in the German-speaking region. In addition to understanding ZOPA and negative ZOPA during a negotiation, you should also consider your best alternative to a negotiated agreement (BATNA) before any discussion. BATNA is the modus operandi that a party will adopt in the event of no agreement during a negotiation.
In other words, a party`s BATNA is what it wants to build on if a negotiation fails. 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 rate and accept the repayment period shares a CCA with the lender, and both parties can reach an agreement. Let`s say, for example, that Dave wants to sell his mountain bike and equipment for $700 to buy new skis and ski equipment. Suzy wants to buy the bike and equipment for 400 dollars and can`t go higher. Dave and Suzy did not reach ZOPA; they are in a negative bargaining area. Take, for example, the sale of a used car. The buyer hopes to buy a vehicle at a price between 2,500 and 3,000 $US. The seller is willing to sell for between 2,750 and 3,250 $US.
In this scenario, there is a positive trading area between $2,750 and $3,000, in which the buyer and the seller`s terms and conditions can be met. Do you want to deepen your understanding of the dynamics of the negotiations? Discover our eight-week online Negotiation Mastery course and learn how to develop the skills and techniques needed to close deals and enter into effective agreements. The Zone of Possible Agreement (ZOPA) is the area of negotiation in which two or more parties can find common ground. In this regard, the parties to the negotiations can strive to achieve a common goal and reach a possible agreement that includes at least some of the ideas of others. The ZOPA is sometimes referred to as a “negotiation margin” or “negotiation area.” It is a great advantage to know the upper and lower limits of a ZOPA. It is understandable that a negotiator is reluctant to take a step forward, or ultimately, because it is the least attractive activity they would accept before moving away from the negotiations. If you know the limits of a ZOPA, it is possible to bring your opponent closer to his limits to get an advantageous deal. It is not a physical place, the area of possible agreement or the margin of negotiation that is seen as an area in which two or more parties to the negotiation can find a common basis. In this area, the parties will often compromise and reach an agreement.