Incentives and penalties in negotiations

Description

This Skill Bit shows that negotiation isn’t just about agreements; it’s about encouraging good behavior. Incentives, like discounts for early delivery, motivate the other side to perform well. Penalties, like late fees, ensure they follow through. The key is to find the right balance: enough incentive to encourage good work, but not so much punishment that it damages the relationship. By designing fair, clear incentives and penalties, you can keep the negotiation moving smoothly and build trust for future collaborations.

Duration approx. 4 Min.

Tier: proficiency