Every negotiation has limits. The buyer will not pay more than a certain amount; the seller will not accept less than a certain amount. Whether a deal is possible at all depends on whether those limits overlap.
ZOPA stands for zone of possible agreement: the range between the buyer’s and the seller’s walk-away points. An agreement is only possible inside this range. In multi-issue B2B negotiations, each variable has its own ZOPA.
Each party has a walk-away point (WAP): the point at which it leaves the negotiation rather than accept a worse deal. It is also called the reservation price or resistance point. For a buyer, it is the highest price it will pay; for a seller, the lowest price it will accept. When the buyer’s walk-away point is higher than the seller’s, the range between them is the ZOPA.
In this illustrative example, a buyer is prepared to pay up to 12 per unit and a seller will accept no less than 8. The ZOPA runs from 8 to 12. Both parties open outside it: the seller asks 15, the buyer offers 5. These extreme openings create room to move, and where the deal finally lands between 8 and 12 depends on preparation, information and the way each side makes its moves.
| Position | Price per unit | Agreement possible? |
|---|---|---|
| Seller’s opening | 15 | No: above the buyer’s WAP |
| Buyer’s walk-away point | 12 | Upper edge of the ZOPA |
| ZOPA | 8 to 12 | Yes |
| Seller’s walk-away point | 8 | Lower edge of the ZOPA |
| Buyer’s opening | 5 | No: below the seller’s WAP |
BATNA stands for best alternative to a negotiated agreement, a term popularised by Roger Fisher and William Ury in Getting to Yes. Your BATNA is what you will do if this negotiation fails, and it should set your walk-away point: you walk away when the deal on the table is worse than your best alternative. The ZOPA is then the overlap between both parties’ walk-away points. A stronger alternative moves your walk-away point in your favour and strengthens your position.
If the buyer’s limit is below the seller’s, no agreement is possible on that single variable. Before you walk away, consider these options:
Most textbook examples use a single price. Real B2B deals involve price, volume, payment terms, contract length, service levels and more. Each variable has its own range between your worst acceptable and your best possible outcome. Mapping them one by one shows where you have room, and where the other party may value something more than you do. The illustrative move planner below shows a supplier’s view.
| Variable | Worst acceptable | Best possible | Opening |
|---|---|---|---|
| Price per unit | €9.20 | €10.50 | €11.00 |
| Annual volume | 40,000 units | 60,000 units | 70,000 units |
| Payment terms | 60 days | 30 days | 14 days |
| Contract length | 1 year | 3 years | 3 years |
With this view, a price that would sit outside the ZOPA on its own may become acceptable when it comes with higher volume or shorter payment terms. That is how trading across variables creates room for agreement.
The IMPACT Negotiation Gauge describes four types of negotiation. The ZOPA plays a different role in each:
Read more about the four types in our guide to the types of negotiation.
The other side will rarely tell you its limit. You can build an informed estimate from:
ZOPA stands for zone of possible agreement: the range between the parties’ walk-away points within which a deal can be made.
Your BATNA is your best alternative if the negotiation fails, and it determines your walk-away point. The ZOPA is the overlap between both parties’ walk-away points.
Yes. Introducing variables that the parties value differently and trading them can expand the ZOPA, or create one where none existed on price alone.
In our training programmes, participants build a ZOPA per variable and a move planner for real deals, then test them in simulations against experienced negotiators.
Our Negotiation Consulting services leverage a proven, successful methodology to deliver exceptional outcomes. We empower our clients either through direct support (consulting) or long-lasting capability development to achieve the best possible results in every negotiation.