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What is Zupa in negotiation? Everything you need to know

Study guide




The area of ​​possible agreement (zupa) or the bargaining area is not a physical place; Is a hypothetical range in which two or more people present in a negotiation are likely to agree. In this area, the negotiating parties usually compromise with each other and reach an agreement. In order for the parties to a negotiation to reach an agreement, they must be on track to reach their common goals and look for an area where at least some of the ideas and ideas of the two parties to the transaction can be met. In the rest of this article on “How”, the area of ​​possible agreement is fully described with clear examples.

Detailed description of the area of ​​possible agreement

No matter how long the negotiation lasts, no agreement can be reached outside the area of ​​possible agreement. In order for the negotiating parties to reach an agreement successfully, they must understand each other’s needs, values, and interests.

Zupa is possible when everyone in the negotiation overlaps or at least agrees to a deal with some of their demands.

For example, in order for Kamran to be able to sell his car to Mehrdad for at least 50 million Tomans, Mehrdad must be willing to pay at least 50 million Tomans. Now, if Mehrdad intends to offer 55 million tomans to buy a car, there will be an overlap between his offer and Kamran’s minimum request; But if Mehrdad wants to pay only 45 million tomans for the car, there will be no overlap here and there will be no parking.

Negative areas of bargaining

When the negotiating parties fail to reach a truce, they remain in the negative areas of bargaining. No transaction can take place in the negative area of ​​bargaining, because in such an agreement, all the needs of the negotiating parties will not be met.

Suppose Reza wants to sell his mountain bike and its equipment for 10 million tomans in order to buy complete ski equipment. On the other hand, Jaleh wants Reza’s bicycle for only 5 million Tomans and it is not possible for him to get more than that. Here Reza and Jaleh cannot reach Zupa. Therefore, they remain in the negative area of ​​bargaining and no deal is done.

However, if the negotiating parties are willing to listen and understand each other’s needs and wants, the negative area of ​​bargaining may be eliminated.

For example, Reza can explain to Jaleh that his intention in selling bicycles is to buy complete ski equipment. Here, Jaleh may have this equipment in a new quality and offer it to Reza. In this case, Reza can sell his bicycle to Jaleh for less and buy Jaleh ski equipment in exchange for the difference in money. At this time, it can be said that the negotiating parties reached Zupa and had a successful deal.

Another example from the area of ​​possible agreement

Suppose a company wants to sell a product in installments for a certain period of time in exchange for a profit. The customer also wants to buy that product in installments, accepting the amount of profit. In this case, the two negotiating parties reach an agreement and are in the Zupa area.

Source

investopedia

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What is Zupa in negotiation? Everything you need to know

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