One common negotiation tip is expanding the pie. The concept is simple, you have a pie and it is only so big. If there are eight slices and you get five, the other person will only gets three. If the pie represents money, you have a zero sum game; one side wins and the other side loses. Not much fun in that if you are the loser, so both sides try to win and negotiations can become deadlocked. An astute negotiator goes beyond the “I win – you lose” philosophy and tries to make both sides winners. The solution is to be creative, to find out what the other side needs, and to satisfy that need. A lot of times this need is more than money.
In a recent episode of American Pickers they showed this strategy working two different ways. Mike and Frank were restoring a 1935 Indian motorcycle that was missing a lot of parts. They were using all original parts and could not find a fuel tank, oil pan and the motor horn crest. They finally found a collector/restorer who had the oil pan and gas tank. Just one problem – he did not want to sell them since he would need them for a future restoration. Meanwhile Danielle, their store manager had located a horn crest. She called him numerous times and he eventually came to their shop to show her what he had. Same problem, he was a collector and did not want to sell it. Both sellers were offered money. No dice. Money was not what they wanted. How did they solve the problem?
Mike knew his seller’s real passion was E. R. Thomas motorcycles. Mike offered him cash and a good lead on a Thomson motorcycle engine. The seller was interested but not biting. Mike sweetened the deal and showed him the picture of the engine and said he would give him the lead. The seller was hooked but not reeled in. Mike offered to call the guy then and there and make the buy himself. The seller could not stand this so he agreed to the cash and the lead.
Danielle offered the collector $500 for the horn crest. The collector refused. Danielle offered more money – still no deal. Then the collector strikes. How about $500 and the Harley Davidson motorcycle gloves on the shelf over there? Of course this is the display shelf and nothing is for sell. Knowing she had to get the horn crest and this was her only opportunity, she did the trade and got the item.
In both instances, the money was immaterial to the seller. Each wanted something besides an eight slice pie. When you are negotiating, be creative and see how expanding the pie will help you meet your objective and meet the other party’s needs.