Word in Action
What phrase means refers to the lowest point or final position you are willing to accept before walking away from the deal. It’s basically your minimum acceptable outcome. Often contrast with the BATNA.
Bottom line
If the deal isn’t valuable and the relationship doesn’t matter, which negotiation strategy should you use?
Avoiding
Precise Explanation: Avoiding means stepping back or withdrawing from the negotiation when the outcome and relationship are both low-value. It saves time and energy that can be better invested elsewhere.
A project manager says: “We want to finish the contract this week.”
What’s the correct business phrase here?
“We want to close the deal this week.”
Why: Close a deal = formalizing the agreement; “finish the contract” is inaccurate.
You don’t like the initial proposal, so you suggest a new price or terms. What are you doing?
Counter an offer
To counter an offer means to reject the first proposal and present alternative terms (price, delivery, conditions), keeping the negotiation active but on your conditions.
If you only care about getting the best outcome and the relationship doesn’t matter, which strategy are you using?
Competing
Precise Explanation: Competing is a win-lose approach where you push for maximum results without concern for maintaining the relationship. It’s common in one-time deals or high-stakes situations.
The team lead says: “We made a deal on the SLA.”
What’s the proper negotiation expression?
A: “We struck a deal on the SLA.”
Why: Strike a deal is the professional phrase
What phrase means pausing discussion and coming back later?
Put a pin in it
Precise Explanation: To put a pin in it means to temporarily set aside a difficult or unresolved issue while addressing other items, with the intention of returning later.
If you offer a discount to build trust and strengthen the relationship, which strategy are you using?
Accommodating
Precise Explanation: Accommodating means prioritizing the relationship over short-term results. You yield or make concessions to build goodwill and strengthen long-term ties.
Let's agree on the delivery speed. How should you phrase it?
A: “Let’s find common ground on delivery speed.”
Why: The idiomatic business expression is find common ground.
In negotiations, what phrase means resolving the small outstanding details before signing the final agreement?
Tie up loose ends
Precise Explanation: To tie up loose ends means finishing minor but important unresolved points (e.g., payment schedules, delivery dates, wording in clauses) so the agreement can be finalized. Without tying up loose ends, the deal might stall or face misunderstandings later.
If two firms co-create a product and share risks for mutual benefit, which negotiation strategy is this?
Collaborating
Precise Explanation: Collaborating is a win-win approach where both parties aim for maximum results by creating joint value. It strengthens both the outcome and the relationship.
An executive says: “I’ll cancel the deal if liability is unlimited.”
What’s the more precise way to say this?
A: “We’ll have to back out of the deal if liability is unlimited.”
Why: Back out of a deal is the accurate term for withdrawing because terms are unacceptable.
In a negotiation, one side has more leverage — for example, the competitor’s offer has expired, so they can dictate better terms. What is this called?
The upper hand
Precise Explanation: Having the upper hand means holding the advantage in a negotiation. It could be due to timing, alternatives, or resources, allowing one party to push for more favorable terms.
If each side gives up something and settles for middle ground so no one gets it all, which strategy are they using?
Compromising
Precise Explanation: Compromising means both parties accept partial satisfaction of their goals. It balances fairness and speed but delivers less than the ideal outcome for either side.
A negotiator says: “Our main barrier- blocker is onboarding fees.”
What’s the correct negotiation term?
A: “Our main sticking point is onboarding fees.”
Why: Sticking point is the specific phrase for a single unresolved obstacle.