Beat the Gap

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A confidential closing technique. Each side submits one confidential number; the parties’ numbers — not the mediator’s — decide whether the case settles.

When to use it

Best late in the day, when both sides have moved substantially, the remaining gap is modest, and neither wants to bid against itself. It works because no one reveals a number to the other side unless the case actually settles.

How it works

  1. Agree to proceed. Both sides agree to be bound by the outcome of the test below.
  2. The mediator sets a percentage range (for example, 20%).
  3. Each side submits one confidential number to the mediator.
  4. If both tests pass, the case settles at the midpoint. If not, the numbers stay confidential and negotiation continues.

The test — calculated from your own number

If you are Plaintiff

Settles only if Defendant’s number is greater than or equal to your confidential number minus 20%.

Example: Plaintiff submits $100,000

  • Defendant’s number must be $80,000 or higher
  • Lowest possible settlement: $90,000

If you are Defendant

Settles only if Plaintiff’s number is less than or equal to your confidential number plus 20%.

Example: Defendant submits $90,000

  • Plaintiff’s number must be $108,000 or lower
  • Highest possible settlement: $99,000

Both tests must pass for the case to settle.

Worked example (20% range)

Plaintiff: $103,000  |  Defendant: $88,000

  • Is Defendant’s number at least $82,400? Yes.
  • Is Plaintiff’s number no more than $105,600? Yes.
  • Both pass, so the case settles at the midpoint: $95,500.

If the case does not settle, the numbers remain confidential and negotiation continues from where it left off. Neither side learns what the other submitted.

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