How to negotiate (the principled way)
The best negotiators find what both sides actually need beneath their positions. How to apply principled negotiation in everyday life.
The best negotiators are not the toughest — they’re the ones who find what both sides actually need beneath their stated positions. Fisher & Ury (1981) called this “interests, not positions,” and it remains the most durable principle in negotiation research. Ask why someone wants what they’re demanding, and you usually discover a solution that haggling over the demand itself never would have reached.
Start with what you actually need, not what you’re asking for
Before any negotiation, most people focus on their opening position — the number they’ll state, the demand they’ll make. The more useful preparation is to go one level deeper: what need is that position serving?
Brian Gunia and David Hoffeld (in The Science of Selling) both argue for excavating the real need before you enter any conversation. If you want a higher salary, is the underlying need financial security, recognition, or the feeling that your contribution is accurately valued? Each of those leads to different solutions — a bonus structure, a title change, or additional scope might satisfy the real need even if the base number doesn’t move. Going in knowing your actual need means you can spot when the other party is accidentally offering it.
This is the preparation most people skip. They prepare their opening line; the better move is to prepare the question you’ll ask when you hear theirs: “Help me understand why that matters to you.”
Know your BATNA before you sit down
Here’s the stance that separates principled negotiation from wishful thinking: you cannot negotiate well from desperation. If you enter any conversation without knowing what happens if this deal doesn’t close, you will accept worse terms than you need to — not because the other person is cleverer, but because the fear of walking away is larger than the cost of the deal itself.
William Ury (2024) frames the BATNA as the negotiator’s foundation. It is not a bluff; it is your actual best alternative if agreement fails. Write it down before you go in. The act of writing it tends to reveal whether it’s as weak as you feared. Often it isn’t.
Knowing your BATNA also disciplines your aspiration. Wheeler (2013) recommends pairing it with a stretch goal — the best realistic outcome — and entering the negotiation curious rather than scripted. Plans are useful; rigid attachment to them is not. The other person will say something you didn’t anticipate, and the negotiators who listen well when that happens consistently outperform those who don’t.
Negotiate over shared value, not entrenched positions
Once you know your interests and your BATNA, the conversation itself should focus on the value created together. This is Nalebuff’s central point in Split the Pie (2023): the “pie” is the total gain from reaching an agreement — and it only exists if both parties say yes. Treating negotiation as a contest over who gets more of a fixed amount destroys the surplus that the deal could have created.
The question that unlocks this: “What would make this deal work better for both of us?” It shifts the conversation from positional warfare to joint problem-solving. Price alone almost never produces the best outcome for either party; understanding what the other person actually values often reveals that they’d trade something you don’t particularly need for something that matters a lot to you.
On sticking points, Dawson’s (2011) advice is blunt: set them aside and build agreement everywhere else first. When both parties have said yes to a dozen things, the psychological cost of collapsing the whole conversation over one unresolved item rises sharply — and the agreed list often quietly reveals what each party actually needs most.
For the skills that make this work in practice — how to read the room, when to make the first offer, how to handle someone who won’t move — see our deeper piece on negotiation tactics.
The relationship is the deal
This is what most negotiation advice written for business contexts misses: in personal relationships, you are always negotiating with someone you will see again. Holiday plans, household labour, whose career gets prioritised this year — every one of these is a negotiation, and the person across from you will remember how the conversation felt long after they’ve forgotten the specific terms.
Fisher & Ury’s instruction to “separate the people from the problem” is not a nicety — it is the condition for any agreement that actually holds. Be hard on the issue. Stay genuinely warm on the person. Attack the problem together, not each other.
When negotiations get difficult, the instinct is to match pressure with pressure. Ury’s (2024) counter is to “go to the balcony” — step back mentally, resist the reactive move, and ask what the other person actually needs behind the aggressive position. Difficulty in a negotiation almost always signals an unmet interest or a fear of losing face, not a fundamentally incompatible goal. Naming it calmly tends to de-escalate faster than any counter-pressure will. If the conversation is already charged going in, our guide on how to have a difficult conversation covers how to set conditions that make hearing each other possible.
The best negotiators are not the ones who win. They’re the ones whose agreements last — because both parties felt heard, both parties got something real, and nobody had to pretend the other person’s needs didn’t matter.
References
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Reference Getting to Yes: Negotiating Agreement Without Giving In
Fisher, R., & Ury, W. (1981). Penguin Books.
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Reference Possible: How We Survive (and Thrive) in an Age of Conflict
Ury, W. (2024). Harper Business.
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Reference Split the Pie: A Radical New Way to Negotiate
Nalebuff, B. (2023). Harper Business.
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Reference The Art of Negotiation
Wheeler, M. (2013). Simon & Schuster.
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Reference Secrets of Power Negotiating
Dawson, R. (2011). Career Press.
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Reference The Science of Selling
Hoffeld, D. (2016). TarcherPerigee.
FAQ
What does 'interests, not positions' mean in practice?
A **position** is what someone says they want; an **interest** is why they want it. Fisher & Ury (1981) in *Getting to Yes* illustrated this with two people arguing over an orange — one needed the juice, one the peel. Splitting the orange 50/50 (the positional compromise) gave each half of what they needed; exploring interests gave each everything. In everyday terms: when your partner insists on a specific holiday destination, ask what they're really hoping to feel on that trip. That question usually reveals options nobody announced.
What is a BATNA and why does it matter?
**BATNA** stands for Best Alternative To a Negotiated Agreement — the outcome you fall back on if talks fail. **William Ury (2024)** in *Possible* argues that knowing your BATNA is the single biggest source of calm in any negotiation: you're not desperate, because you know what happens if this deal doesn't close. Without a BATNA, you tend to accept terms that don't actually serve you, purely to avoid the discomfort of walking away. Before any significant conversation, write down your alternative. It changes the room.
How do I prepare for a negotiation without over-scripting it?
**Michael Wheeler (2013)** in *The Art of Negotiation* recommends preparing a **stretch goal** (the ambitious outcome you'll aim for) and a **fallback** (the minimum you'll accept), but holding both loosely. Over-scripted negotiators struggle when the conversation goes somewhere unexpected — and it always does. The preparation is to know your interests and your BATNA clearly, not to rehearse lines. Think of it as setting the destination, not the route. Then stay genuinely curious about what the other person says when you get there.
Is sharing information a weakness in a negotiation?
The opposite. **Barry Nalebuff (2023)** in *Split the Pie* and **Herb Cohen (2003)** in *You Can Negotiate Anything* both argue that **openness builds trust faster than secrecy** — and trust is what moves negotiations. When you share your real constraints (timeline, budget ceiling, what matters most to you), you give the other person material to create a solution you hadn't thought of. Tactical silence about everything tends to produce impasse, not advantage. The information to protect is your BATNA; most else can be offered.
How do I negotiate without damaging the relationship?
Fisher & Ury's (1981) core instruction is to **separate the people from the problem**: be hard on the issue, genuinely soft on the person. This means naming your interest without attacking theirs, resisting the urge to score rhetorical points, and treating their stated position as data rather than a threat. In personal relationships especially, the negotiation is almost never purely transactional — the person across from you will remember how the conversation felt long after they've forgotten the specific terms. Read our guide on [how to have a difficult conversation](/en/blog/how-to-have-a-difficult-conversation) before going in if the stakes are high.
What if we're stuck on one issue and everything else is agreed?
**Roger Dawson (2011)** in *Secrets of Power Negotiating* recommends **setting sticking points aside** and building agreement on everything else first. Once both parties have said yes to fifteen things, the psychological cost of walking away from a sixteenth rises sharply. A long list of 'agreed' also reveals which contested issue matters most to each side — sometimes a sticking point dissolves when you can see that the other party needs it for a specific reason you hadn't known. Momentum is real in negotiations; build it where you can.
How does 'splitting the pie' work?
**Nalebuff's (2023)** central argument in *Split the Pie* is that negotiations should focus on the **value created together**, not on starting positions. The 'pie' is the total gain from reaching a deal versus both parties walking away. Because the pie only exists if you both agree, it should be split based on equal bargaining power — not on who anchored first or who negotiated harder. In practical terms: instead of arguing about price, ask 'what would make this deal create more value for both of us?' That question alone usually unlocks options that price-haggling never touches.
When should I anchor first in a negotiation?
Anchoring first works when you have **good information** about the real range of outcomes and you want to shape the conversation's reference point. It works poorly when you're uninformed — a bad anchor can signal desperation or ignorance. In personal and relationship negotiations, anchoring is often counterproductive anyway: opening with an extreme demand signals that you're thinking in positions, not interests. A better opening is a question: 'What matters most to you here?' You'll learn more from their answer than from any anchor you could have named. See our piece on [negotiation tactics](/en/blog/negotiation-tactics) for when hard anchoring is genuinely useful.
Can principled negotiation work when the other person is being difficult?
Yes — and it works better than matching aggression. When someone is positional or aggressive, **Ury's (2024)** advice is to 'go to the balcony': mentally step back, resist the reactive move, and ask what they actually need. Difficult behaviour in negotiations almost always signals an unmet interest or a fear of losing face. Naming that directly — 'it sounds like [X] matters a lot to you' — tends to de-escalate faster than counter-pressure. Being persuasive in tough moments is a separate skill; [how to be more persuasive](/en/blog/how-to-be-more-persuasive) covers the evidence-based side of that.
How does principled negotiation apply to personal relationships?
More directly than most people expect. Every conversation where two people want different things is a negotiation — holiday plans, whose career takes priority this year, how to split household labour. The mistake is importing the positional habits of transactional dealmaking into relationships that depend on goodwill. **Fisher & Ury's (1981)** framework was designed for high-stakes diplomacy, but its core insight — that durable agreements emerge from shared interests, not bested opponents — applies at every scale. For the relationship-specific version of these skills, see our guide on [negotiating in relationships](/en/blog/negotiating-in-relationships).