Where there is a single issue negotiation such as at a market where you might haggle over the price of a carving, there is a fixed pie. A fixed pie means there is no chance of exploring ways of both getting more – there are only so many slices of the pie to divide. In most commercial negotiations there are three characteristics which make the pie elastic in size and desirability:
- More than one issue
- Each party values each issue differently
- Interests may be complementary
An outcome can be reached by both people which is better for both than if they assumed there was a fixed pie. Many negotiators don't reach these types of agreement because they assume their interests are conflicting. The assumption of conflicting interests may also lead to devaluing concessions made by the other party since we think that "If they are conceding it to us then it can't be too valuable to them".
So make your first approach one where you attempt to work with the other person to expand your outcomes and the number of alternative ways of getting them. You will then both end up better off.
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