The Negotiation Book: Your Definitive Guide To Successful Negotiating

9.2. UNDERSTANDING VALUE

There are five things which can happen to value in negotiation. You can:

1. give it

2. create it

3. share it

4. protect it

5. take it.

As part of your tactical planning you will have considered the clock face and decided on your strategy. If you are planning to increase prices and there are no trade-offs involved, unless your customer is passing the price increase directly on to their customer, they may regard the negotiation as you simply looking to 'take' value especially if you impose your demand without offering anything in return. With enough power and at 4 o'clock, you have set out to take value which they in return will have to concede. However, before you can impose such a price increase you need to consider the balance of power. For example, the fact that you can tell your kids what to do doesn't mean that it will always be the best thing to do, as you consider the longer-term implications for your relationship. In other words, the more power you have the more options you have but you need to remain mindful of the longer-term dependency in play.

9.2.1. The three dynamics of value

In negotiation, as in business, the general offer is that you can have 'it' quick, good or cheap. Now pick any two.

In other words, if you are offered all three, you are likely to be getting something which is 'too good to be true'. 'Quick' usually means now and for most suppliers it means additional cost. 'Good' can mean high quality but will usually come at greater cost. 'Cheap' may ...