Reservation point, also known as walk-away point or bottom line, is the lowest price or highest price that a negotiator is willing to accept in a negotiation. In other words, it is the point at which a negotiator would rather walk away from the negotiation than accept a lower or higher offer.

The reservation point is an important concept in negotiation because it helps negotiators to set realistic expectations and to avoid making concessions that they will later regret. It also helps negotiators to identify the zone of possible agreement (ZOPA), which is the range of prices or terms that both parties would be willing to accept.

For example, let’s say you are negotiating the purchase of a car. Your reservation point might be €20,000. This means that you would be willing to pay up to €20,000 for the car, but you would not be willing to pay any more than that. If the seller is unwilling to sell the car for €20,000, you would walk away from the negotiation.

Here are some tips for determining your reservation point:

By following these tips, you can determine your reservation point and increase your chances of success in negotiation.

Here is an illustrative example of a reservation point:

The reservation point can vary depending on the specific situation. However, in general, a good reservation point will be realistic and will allow the negotiator to walk away from the negotiation if they do not get a favorable agreement.