The Deal Zone
The Deal Zone is the range of potential mutual agreement between stakeholders across all deal variables.
Context
Determine all the possible variables in the negotiation such as timing, quality, relationship, personnel experience, materials, and so on. Price is the last thing to consider.
Team Alignment
Consider the range of potential options for your stakeholder and map against yours to determine the Deal Zone.
Mandate
The Deal Zone is determined, but don't forget to think about how to co-create beyond price and traditional variables. How can you apply creativity with new types of deal structures and strategies for a WinWith™ outcome?
Unlike the economic principle of Supply and Demand where a fixed price is determined and offered on a ‘take it or leave it’ approach, the art of negotiation is about trading the multiple variables and shared micro-forces that impact agreement on time, quality, price, units and many other possible considerations created by the market at the time of the negotiation. Each of the parties involved in the negotiation will have their own best and worst case for each of these variables ie. as many deal zones as there are variables.
We need to be curious and dig deep to reveal all market variables. Most of the time there will be a range before hitting a point where each party would consider walking away; and it is usually unspoken between parties. The WinWith™ Negotiation process is about understanding this reality, and enable participants to maximise the value in the deal through applied curiosity. It is solely our own skillset and mindset that maximises the value in our negotiations.
