Positional Bargaining vs. Win/Win Negotiation

Can selling style (win/win bargaining) influence a sale? Yes it can!

An example of positional bargaining vs. win/win negotiation can be seen between two people at a yard sale; the buyer and the seller. Listed in the table are the two positions of the players.

Table reproduced with permission

The buyer notices the tool for sale in the driveway and casually asks the seller, “How much?” In positional bargaining, the seller recognizes that there is a demand for the item which magically now has more value to him. He starts to wonder if he should sell it at all since it is in good shape and he paid a lot of money for it when it was new. The seller needs the item but does not want to pay a lot for it. The scenario turns into haggling over price. The buyer decides it is not worth his time to haggle over an item he believes is not worth it because it is a used item. He loses out on a tool he needs at a good price. The seller’s ego prevents him from letting go of an item and misses out on cash to help pay for his move.

If this had been handled as a win/win negotiation, the buyer and seller would have spent more time upfront talking about the item. 

Below are some possible comments and questions from the buyer and seller that could have changed the direction of the negotiations: 

Buyer: This is a nice tool. Why are you getting rid of it? Where are you moving to? Are you retiring? This tool is $100 new. Were you able to use it? What kind of things did you build with it? Can I see it? Do you have more tools? Are you a woodworker? 

Seller: Are you a woodworker? Do you do a lot of projects? Is this for your home or for a business? What are you working on now? Do you need other tools? I have an assortment in here. Would you like to see the other tools for sale?

Once the two men start discussing what they really want, the true value of the tool changes. The seller may even say to the buyer, “Listen, I am just trying to sell some of the things I don’t use anymore. I need some cash to help with my move. I can see you want this tool. Why don’t you make what you think is a reasonable offer and we will call it good.” He moves his inventory, he does not have to throw out his stuff, and he gets cash for his move (probably more than what he would have received if he had haggled). The buyer may say, “I see you have a lot of great tools I can use. It would save me a lot of money if I could get them from you and not have to buy everything new. The tools are in good shape. Why don’t I give you half of what they are worth new and we will call it good.” The buyer gets his tool, recognizes the item is of acceptable quality, and gets what he needs at half the cost. He also feels good because he has helped out the man selling the tools and possibly made a friend in the process. Likewise, the seller feels he has helped the buyer get a good deal and he knows his tools, which he used and loved at one time, will be used for a good purpose. The two men made a connection and both walked away feeling like they had both received the better end of the deal without taking advantage of the other person.

Let’s discuss your strategy. Call Leap Year Marketing, 603-344-8843, or email us at joanne@leapyearmarketing.com.