A negotiation to buy a car is a good real-life example not only because we all do it, but also because it parallels most situations where we buy something, be it for ourselves or a large corporation. There’s a fairly limited range of possibilities, both in terms of possible products and options, and in price. Up-front research and decision making presents the negotiator with a relatively easy task; once the negotiation gets under way, there will generally be only one or two sticking points—one, actually, and it’s almost always price. The negotiator can focus his strategy on clearing that last hurdle at the closing. While being realistic and ready to grab your out are often easier said than done, those really are the keys to a good negotiation, especially in a relatively straightforward situation like a car sale.
But what about situations in which there are a ton of hard to quantify variables? Where not only are you dealing with your emotions, but with the other side’s as well? And where you have a complicated relationship with your negotiating team—and so does the other side?
In real life, we call that buying a house.