Negotiation is the process of reaching agreements when two parties have different interests. It’s an essential skill for resolving differences, protecting your objectives, and building more balanced relationships in personal life, at work, or in business.
However, you need to know which negotiation strategies are most effective and understand when to apply them. That way, you can handle disagreements with greater clarity, make better decisions, and achieve better results.
In this article, you’ll find negotiation strategies and techniques, along with clear examples and step-by-step guidance on how to apply them.
Negotiation is a process in which two or more people with different interests talk and seek to reach an agreement acceptable to everyone. It’s one of those soft skills that makes difficult conversations easier without damaging the relationship between the parties.
Several fundamental components are involved in negotiation:
The parties involved: typically two or more.
The interests: that is, what each party seeks or needs.
Possible agreements: which guide the final solution.
Reciprocal concessions: necessary to reach a mutually beneficial agreement.
Within this process, positional bargaining is the most common way to interact. This can take two very different paths:
Competitive negotiation: focused on one’s own benefit.
Collaborative negotiation: aimed at building a solution that benefits both.
The strategy depends on that choice…
Negotiating involves assessing the context, the interests, and the relationship between the parties to choose the most appropriate approach. There isn’t a single “right” way to do it, so different types of negotiation or strategies are used.
In this context, the five most effective negotiation strategies are those aligned with the Thomas-Kilmann Conflict Mode Instrument (TKI):
Collaborative strategy (win–win).
Competitive strategy (win–lose).
Accommodating strategy (yield or adapt).
Avoiding strategy (avoid the conflict, postpone, or withdraw).
Compromising strategy (each side gives a little).
Seeks benefits for both parties through open dialogue and the exploration of common interests.
The collaborative strategy is used in alliances, stable employment agreements, or joint projects—in essence, when the relationship matters and a sustainable solution is needed.
Benefit: produces stronger agreements and strengthens the relationship between parties.
Drawback: requires time and a willingness to cooperate.
Outcomes are win–win.
In this negotiation, each party is concerned with its own benefit.
When is it used?
When the future relationship isn’t relevant, time is limited, or non-negotiable minimums must be defended (price, critical clauses).
Benefit: protects immediate interests and enables quick deals.
Drawback: can create tensions and reduce opportunities for future collaboration.
What one gains, the other loses.
A useful approach when the issue isn’t very important to you or when you want to build goodwill for future negotiations. It prioritizes the other party’s needs by yielding on your own points.
Benefit: strengthens trust and can pave the way for reciprocity later.
Drawback: may create expectations of constant concessions or resentment if used too often.
It’s commonly associated with a “lose–win” or adaptation approach.
Involves postponing, minimizing, or flat-out avoiding the negotiation. Ideal if the issue isn’t very relevant, you lack sufficient information, or conditions just aren’t right.
Benefit: saves time and resources on low-importance conflicts.
Drawback: can lead to bigger problems if avoidance becomes habitual or if the other party interprets it as disinterest.
Seeks a middle ground where both parties give up a little to reach an acceptable solution. It’s practical when time is short or the issue is important but not critical.
Benefit: quick, balanced agreements.
Drawback: may leave value uncreated and fail to fully address underlying interests.
No one gets everything they want, but both get something acceptable.
These are all strategies for better negotiation, but applying them will depend on the situation.
When we talk about negotiation techniques, we mean specific actions and/or skills that make the agreement work.
With that in mind, here are key techniques you should master for effective negotiation:
Preparation and interest analysis. Involves researching the other party, setting goals, defining limits, and analyzing what you want and why—so you can anticipate scenarios and negotiate confidently.
BATNA (best alternative to a negotiated agreement). It’s your option if no deal is reached. Knowing it helps you compare proposals, set your walk-away minimum, and avoid unfavorable decisions.
Active listening and clear communication. Paying attention, asking questions, and confirming understanding reduces misunderstandings and improves cooperation.
Anchoring. Mastering this technique is essential because it often influences the entire range of the negotiation. The anchoring effect can move the outcome toward your desired zone if it is well-founded.
Gradual concessions. Based on giving way in a planned, incremental manner—always asking for something in return.
Relationship building. Means acting consistently, keeping commitments, and communicating transparently.
Emotional management. Involves recognizing and regulating your emotions during the negotiation. Try deep work before negotiating to cut distractions, improve mental clarity, and maintain a calmer stance.
The more you practice these negotiation techniques, the more natural it becomes to adapt to different situations and reach solid agreements.
Applying strategies to negotiate better requires analysis and careful execution.
These steps will help you put any approach into practice in an orderly, effective way:
Assess and choose a strategy. Analyze the main objective, how important the relationship is, each party’s power level, and urgency. From there, choose the most suitable approach.
Define objectives and limits. Establish what you want to achieve, what you’re willing to give, and your red line. This is where your BATNA comes in: if the proposal falls below that alternative, the healthiest choice is not to accept.
Identify the counterpart’s interests. Research beforehand and, during the conversation, ask open questions to understand what the other side needs (price, timing, certainty…). The more you know, the easier it is to design valuable options.
Select techniques based on context. Choose according to the type of negotiation: salary raise, vendor contract, internal conflict, buy–sell, etc. Not all techniques carry the same weight in every scenario.
Close the deal and confirm. Summarize what’s been agreed aloud, verify both sides understand it the same way, and set timelines, roles, and next steps. Then put everything in writing (email, contract, minutes) to avoid future misunderstandings.
This raises your odds of reaching firm, balanced, mutually beneficial agreements.
Business negotiation has changed with remote work and distributed teams.
Today, many agreements are handled via digital channels like Slack, internal emails, or video calls. That forces you to adapt how you communicate, document agreements, and resolve disagreements in less face-to-face environments.
What are the challenges? You lose part of body language, the risk of misunderstanding increases, and coordination demands more precision.
Still, you can negotiate effectively by applying techniques specific to the digital environment, such as:
Being explicit and structured in video calls.
Managing agreements in writing to avoid differing interpretations.
Preparing clear, easy-to-review digital documentation.
Using online timelines to define deadlines and responsibilities.
Caring for written clarity with short sentences, key points, and confirmations.
In this context, proper use of remote-work tools streamlines communication, brings order, and strengthens the final quality of agreements.
Negotiation strategies are used in everyday scenarios within companies and teams. To give you a clearer idea, here are some simple examples:
Salary negotiation (collaborative strategy). Propose a raise based on measurable results and suggest bonuses or additional benefits—seeking an agreement that strengthens the relationship with the company.
Vendor negotiation (competitive strategy). Define prices and timelines defending your margin and walk-away minimums to get the best possible offer without conceding more than necessary.
Client negotiation (compromising strategy). When a client requests more services for the same price, offer a small adjustment so both sides concede moderately.
Internal team negotiation (accommodating strategy). Yield on aspects like dates or resources during 1:1 meetings to facilitate project progress and maintain team collaboration.
Of course, it all depends on the objective, the relationship between the parties, and the environment.
Negotiation strategies (collaborative, competitive, accommodating, avoiding, and compromising) offer different ways to approach disagreements. Each provides distinct tools to address specific needs, and their effectiveness depends on how they’re integrated. That’s why solid preparation, clear communication, and balanced emotional management are essential.
Applying strategies to negotiate better also requires adopting a flexible, analytical mindset—always oriented to creating solutions that generate value for all parties.
In other words, you need clarity and order to negotiate—just as you do to manage your finances. In this case, DolarApp makes it easier, since we operate with different currencies from a single app.
With us, you can send, receive, or exchange USDc and EURc at a fair, transparent rate—ideal if you run a business with clients abroad.
The collaborative strategy often delivers the best results because it seeks benefits for both sides and sustainable agreements. But the key is adapting to the needs and the type of relationship.
Stay calm and avoid mirroring the tone, but restate boundaries and ask for a pause if necessary. You can also redirect the conversation to data, agreements, and concrete objectives.
It’s your alternative if the negotiation doesn’t reach a deal. Think of it as your “plan B,” an option that helps you decide whether to accept a proposal or walk away.
Gather measurable achievements, research market ranges, and define your minimum acceptable number. Then present your proposal with evidence, listen to the response, and negotiate additional benefits.
Sources:
The world has borders. Your finances don’t have to.
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