Author Box
Articles Categories
All Categories
Articles Resources

What's Your Negotiating Game Plan?

February 16, 2012 | Comments: 0 | Views: 198

When you enter into a negotiation do you automatically try to maximize your gain from the transaction? If so, you are not alone. However, you might want to step back and think about your game plan before you begin negotiating.

There are different types of negotiating situations. You must know what type you face before you choose a strategy.

A distributive negotiation is sometimes called a 'fixed pie' negotiation. The parties each strive to get as big a slice of the pie as possible. Because one party's gain can only come at the expense of the other, a win-win outcome is not an option.

A classic example of a distributive negotiation is the purchase of a used car. The buyer wants to pay as little as possible, while the seller strives to get the highest price possible. The car itself does not change, but the ultimate purchase price can vary greatly. The name of the game is how to distribute or allocate the pie, or to fight for the larger piece.

Some of the hallmarks of a distributive negotiation are:

A single issue. With only one issue - usually money - being negotiated, there is nothing to trade off. One party's gain is the other party's loss, and each side tries to maximize their gain.

A one-off transaction. With no ongoing relationship between the parties, neither is concerned about whether the other side is happy with the outcome. If you will never see the other person again, you may not care what he thinks of you.

A short time frame. Time pressure tends to make people more competitive, more focused on what they want, and less focused on the other party's needs.

In a distributive situation you will adopt a competitive strategy. You will take a more aggressive position and make fewer concessions. You may even use hardball tactics.

In contrast with a distributive negotiation, you may find yourself in an integrative situation. An integrative negotiation is one where both parties try to optimize their objectives. As people have different needs, it is possible for both to get everything they want in an integrative negotiation. A win-win is possible.

Some characteristics of an integrative negotiation are:

Multiple issues. With several issues being discussed, there is room for give and take. You can concede more on less important issues and ask for more on the issues that matter most to you.

An ongoing relationship. When you negotiate with someone you deal with regularly you must maintain a good relationship. You will have other negotiations with this person, and each one has to be mutually satisfying. You're better off making a good customer happy than taking him to the cleaners and trying to find a new customer to take his place after he stops dealing with you.

In an integrative situation you will choose a collaborative approach. You will build trust, share information, and discuss needs. Your demands will be more moderate and your concessions more generous. You will look for options that satisfy both parties and evaluate them based on fair standards. You cannot play dirty with a spouse, boss, or valued client - you have to live with these people!

There is also a third type of situation, the mixed motive negotiation. This contains elements of distributive and integrative negotiating, and is the most common situation. It involves creating as much value - expanding the pie - as possible, then seeking a favorable distribution.

In a mixed motive negotiation you begin by collaborating to create value, then shift into a more competitive posture to claim as much value as possible. This shift should be subtle. A sudden change from amiable Dr. Jekyll to selfish Mr. Hyde can upset your counterpart and make agreement difficult. You should also recognize that you will not get the whole pie, so be prepared to justify why you should get a favorable split.

There are times when you will only be interested in a distributive approach. You may be in the market for a used car. Perhaps you do not have a relationship with the other party and are not so concerned about how they fare. You make not have the time to consider options that create a win-win.

However, in most negotiations you will have an ongoing relationship with your counterpart - your client, business associate, spouse, or even a rival. There is a time to win, and a time to balance winning with getting along. Understand the difference before you begin negotiating.

David Goldwich, the Persuasion Doctor, is committed to helping people get what they want. A "reformed" lawyer, David teaches people how to play the negotiation game and become more assertive, compelling, and persuasive. He gives talks and conducts workshops in persuasive business presentations, negotiation, storytelling for leaders and sales professionals, and other areas of influence and persuasion. Learn more at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Distributive Negotiation


Integrative Negotiation


Mixed Motive Negotiation


Negotiating Strategy

In India, employment opportunities are set to grow by a good margin in the coming year, a phase which was started in the turn of the second decade of the 21st century. organisation, candidates with

By: Sarkariexam l Business > Careers Employment l April 01, 2013 lViews: 11713

Sometimes it is amazing to see that certain jobs can precipitate huge turnouts in the recruitment drives. It is as if thousands of people were waiting for the vacancy advertisements and the moment

By: Sarkariexam l Business > Careers Employment l December 30, 2012 lViews: 690

In recent times, jobs in healthcare segments have grown tremendously. It is anticipated that this growth curve will continue for the times to come. Various factors are responsible for this

By: Sarkariexam l Business > Career Advice l December 27, 2012 lViews: 449

Are you in a dilemma whether to choose web based CRM or not? If yes, don’t worry. You aren’t the sole person having this doubt.There are numerous firms trying to make out whether investing in a

By: Reneta Vasileva l Business > Customer Service l December 23, 2012 lViews: 410

If you think about it you will realize the fact that each business has its own set of risks that are involved in it.The trade secrets that you have and the information related to the business is what

By: brumbrum1 l Business > Risk Management l December 23, 2012 lViews: 264

As the time is changing, concierge management services are now growing despite the slowing economies of the world. The main reason of it is the need that is highly specific to the people who like to

By: willsmith10 l Business > Management l December 23, 2012 lViews: 334

Having successfully negotiated many hundreds of contracts over more than the last three decades, I have often observed numerous negotiating techniques and philosophies. Perhaps the poorest model has

By: mml Business > Negotiationl April 27, 2012 lViews: 234

Peter F. Drucker, the author's former professor and world renowned management sage urged executives to "Know Thy Time," as an essential first step in becoming more effective. Good idea, but we can't

By: Dr. Gary S. Goodmanl Business > Negotiationl April 25, 2012 lViews: 165

Many people think they know how to negotiate. However, in a large percentage of cases, these individuals end up being ill-prepared, rarely achieving anywhere near optimum results. This is especially

By: mml Business > Negotiationl April 24, 2012 lViews: 184

By now, we've all heard of Groupon, LivingSocial, Google Offers and Yelp Local Deals. In fact, to date there are roughly 521 daily deal websites in the United States alone. We'll explain how to use

By: Jason M Murphyl Business > Negotiationl April 21, 2012 lViews: 199

Threats are yet another one of the negotiation styles and negotiating techniques that we can use. It turns out that that big stick has some consequences that you need to be aware of.

By: Dr. Jim Andersonl Business > Negotiationl April 20, 2012 lViews: 163

In my over thirty years of planning many hundreds of events, conferences and conventions, I have discovered, often the hard way, many of the pitfalls and potential pitfalls involved in successfully

By: mml Business > Negotiationl April 16, 2012 lViews: 177