Vocabulary That You'll Need for Any Negotiation

Be prepared for your next negotiation with these key words.

The words below are commonly used in negotiations. They are all nouns except for the last three.

Concession: something that you give to the other side to make them happy (“concede” = verb)

Compromise: an agreement that satisfies both sides by exchanging concessions (“compromise” = verb)

Impasse: when two sides cannot agree on an issue

Interests: the needs that each side is trying to satisfy

Alternatives: different options that can be proposed

Proposal: what one side offers to the other side (“propose” = verb)

Counterproposal: when you respond to a proposal with a different one that you came up with

Terms/Conditions: the requirements that each side must meet

Counterpart/The Other Party: the people who you are negotiating with

Ultimatum: a final “last chance” offer

Leverage: something that you can use as your advantage against the other side

Tactics: moves/actions that are part of a strategy to get an advantage

Strategize (v): to think of and develop a strategy

Negotiable (adj.): when something is not decided yet and can be negotiated

Compensate (v): to give someone something positive in order to “balance” a negative situation that they received

Practice

Match the words below with their definitions 1 - 15.

Concession / Compromise / Impasse / Interests / Alternatives / Proposal / Counterproposal

Terms / Counterpart / Ultimatum / Leverage / Tactics / Strategize / Compensate

1. different options that can be proposed

2. the requirements that each side must meet

3. to think of and develop a strategy

4. when two sides cannot agree on an issue

5. when something is not decided yet and can be negotiated

6. a final “last chance” offer

7. what one side offers to the other side

8. something that you give to the other side to make them happy

9. an agreement that satisfies both sides by exchanging concessions

10. moves/actions that are part of a strategy to get an advantage

11. something that you can use as your advantage against the other side

12. the needs that each side is trying to satisfy

13. the people who you are negotiating with

14. to give someone something positive in order to “balance” a negative situation that they received

15. when you respond to a proposal with a different one that you came up with

Put the words below into the correct blank:

Terms / Concession / Impasse / Leverage / Negotiable / Interests / Counterproposal / Compensate

1. The price isn't determined yet. It's _____________.

2. We can use our size as ____________ to get a good deal from this negotiation.

3. We couldn't give them the discount that they want, but we gave them free delivery to _________.

4. We didn't like their offer so we made a ____________. We'll see if they accept it.

5. We made a _____________ by reducing our price to meet their request.

6. If you don't like the ______________ of the contract, you can always walk away.

7. Mediators will be called in to help if the two sides reach an ______________.

8. It's important to understand the ____________ of the other party so that you offer them something that has value to them.

Answers

Definitions:

1. Alternatives

2. Terms

3. Strategize

4. Impasse

5. Negotiable

6. Ultimatum

7. Proposal

8. Concession

9. Compromise

10. Tactics

11. Leverage

12. Interests

13. Counterpart/The other party

14. Compensate

15. Counterproposal

Fill in the blank:

1. Negotiable

2. Leverage

3. Compensate

4. Counterproposal

5. Concession

6. Terms

7. Impasse

8. Interests