The Guide to Negotiation Vocabulary in English
The essential terms of business negotiation in English explained: leverage, concession, walk away, counteroffer, and BATNA, each with a practical example.
, 2 min read, Sales English
Key takeaways
- This guide covers vocabulary (the technical terms of negotiation), different from the ready-made phrases covered elsewhere on this site.
- "BATNA" (Best Alternative To a Negotiated Agreement) is the most important concept to understand before any negotiation in English.
- "Leverage" and "walk away" are the two words that come up most often in an English negotiation strategy discussion.
This guide covers the technical vocabulary of negotiation in business English: the concepts and terms that come up in strategy discussions, not the phrases to say live (see our article on key negotiation phrases for that).
BATNA (Best Alternative To a Negotiated Agreement)
Your best alternative if the current negotiation fails. The stronger your BATNA, the more negotiating power you hold, even without mentioning it directly.
"Before this negotiation, know your BATNA, what happens if this deal falls through?"
Leverage
The power or advantage one party holds in a negotiation, often based on urgency, exclusivity, or available alternatives.
"They have more leverage right now because we need this deal more than they do."
Concession
A compromise granted during negotiation, usually in exchange for another compromise from the other side.
"We made a small concession on price in exchange for a longer contract."
Counteroffer
A counter-proposal in response to an initial offer, generally more favorable to the party making it.
"They rejected our first offer and sent a counteroffer."
Walk away
The point where a party chooses to end the negotiation rather than accept unfavorable terms.
"We were ready to walk away if they didn't move on the contract length."
Anchor / anchoring
The first offer or number stated, which strongly influences the rest of the negotiation, even though both sides know it will move.
"Their initial anchor was much higher than we expected."
Zone of possible agreement (ZOPA)
The zone where both parties' positions overlap enough for an agreement to be possible.
"Once we understood their budget, we could see there was a real ZOPA."
Escalation clause
A contractual clause providing for an automatic increase (often in price) under specific conditions.
"The contract includes an escalation clause tied to inflation."
Deal breaker
A condition that, if unmet, ends the negotiation permanently.
"Exclusivity is a deal breaker for us, we can't agree to that."
How to use this vocabulary
These terms mostly serve to understand and participate in English strategy conversations (with your team or in training), more than to use directly with a client. Facing a client, prefer the natural language covered in our guide to negotiation phrases.
Frequently asked questions
- What's the difference between this guide and the negotiation phrases elsewhere on the site?
- This guide covers technical vocabulary and concepts (BATNA, leverage, concession); the other article covers ready-made phrases to say during an actual negotiation.
- Do you need to know all these terms to negotiate well?
- Not necessarily to negotiate effectively, but knowing them helps you understand internal strategy conversations and English-language documentation on the topic.
- What is a BATNA in practice?
- Your best alternative if the negotiation fails. A negotiation where your BATNA is strong gives you far more negotiating power, even without stating it directly.