Very few negotiations involve a fixed value or a commodity product. There’s generally at least one or more ways that the parties can alter the value of the deal or product or service at the heart of their negotiations—in effect, enlarging the pie. In these situations, price is only one of several issues that matter. The quality of the product or service, the reliability of the other party, or the importance of one’s relationship with the other party may be just as important as price.
In win-win deals, relationships often matter.
Consider a negotiation between MakeCo—a manufacturer—and one of its long-term suppliers, WidgetWorks. MakeCo is trying to negotiate a purchase agreement for 10,000 widgets built to its specifications for $5 ...