The room for negotiation
The traditional room for negotiation can be defined as the difference between the highest price which a buyer is willing to pay, and the lowest price to which a seller is ready to come down. For a deal to be struck, there must be a positive room for negotiation, the buyer must be willing to pay a price above the seller’s threshold of pain.
If the maximum price which a buyer can pay is $12,500 and the lowest price to which a seller can come down is $11,900, the difference of $600 constitutes the room for negotiation within which a deal can be struck.
But the actual room for negotiation is normally larger. It consists of the sum of the traditional room for negotiation plus the added value we may create. This allows us to ...
Get Negotiating Partnerships: Increase profits and reduce risks now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
