A deal exists only where the ranges overlap.
Direct answer
ZOPA is the zone where both sides can agree. If a seller will accept 800 or more and a buyer will pay up to 1,000, the ZOPA is 800 to 1,000. A deal is possible within it. If the ranges do not overlap, you need new options to create value.
Example
| Limit | |
|---|---|
| Seller minimum | 800 |
| Buyer maximum | 1,000 |
| ZOPA | 800 to 1,000 |
How to use it
- Know your own limit.
- Estimate theirs.
- Aim for the best point inside the zone.
- If there is no zone, look for other terms to trade.
Where Teyro fits
Teyro's How to Handle Difficult Negotiations course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Find the overlap, then negotiate within it.
