What is the concept of negotiating? Most people would say the “concept” is haggling. That’s what most people think of. Garage Sale style. There’s one thing to buy/sell and there’s one price. The seller trying to get a high price, the buyer trying to get a low price.

But theoretically, and at the academic level I believe you’d be told, negotiating is creating a larger pie (value) for both parties, then subsequently dividing the pie. Most people wouldn’t consider that concept.

The most correct response/reply you’d receive would be rooted somewhere in “trying to get a better deal for my side”. Simple or complex, personal or business, buy side or sell side. TableForce excels at explaining two constructs that are fundamental in getting the better deal”.

  • First, that BOTH sides can do better. It’s not a zero-sum game with one winner one loser. I can make the deal size lager and create more value for my adversary.
    • We use the terms “create value” and “claim value”. Very common in “negotiation world”.
      • First create value.
        • “How much do you want for the car?
          • Followed by: what’s included (creation) i.e., extra tires, cover, washing kit, rims, ….
      • Next claim value (if you claim first, you’ll scare the other side. Damage trust.)
        • What’s included in my price?
          • Same list, but this is where capturing (claiming) value comes in. Some well-placed comments or tactics can help one side do better than the other, while keeping them happy (often unknowing)
            • I was on my way to your competition, but I thought I should stop here first. I need a better price, but I don’t need the extra tires. If you can do better on price, you can keep the tires AND I’ll leave you a positive review, OR I can introduce you to my friend whose car is just coming off lease.