Negotiation is a fundamental skill for every business owner, essential in everything from securing new contracts to resolving disputes. While negotiation strategies can vary, understanding distributive negotiation is particularly important due to its frequent occurrence in business dealings.

What is Distributive Negotiation?

Distributive negotiation, often called "win-lose" negotiation, involves parties competing over a fixed amount of resources. Think of it as slicing a pie: the bigger your piece, the smaller the other person's. Typically, this style of negotiation is transactional, with each party trying to maximize their own share, often at the expense of the other.

In this approach, negotiators keep their information guarded, using strategic tactics to persuade the opposite side to concede more ground. Common tactics include setting high initial demands, showing reluctance, and making incremental concessions.

Insight from a Negotiation Expert

Former FBI hostage negotiator Chris Voss once said, "Negotiation is not an act of battle; it's a process of discovery. The goal is to uncover as much information as possible."

Though distributive negotiation might feel adversarial, Voss's wisdom underscores the importance of information—even in competitive scenarios. By carefully observing and asking strategic questions, a skilled negotiator can gain insights into the opponent's priorities, enhancing leverage.

Key Takeaway for Business Owners

For business owners, mastering distributive negotiation is critical. It allows you to stand your ground effectively, maximize outcomes, and protect your interests when resources are limited. However, remember the value of gathering information and understanding the other party's position—even in competitive negotiations. Doing so positions you not just to claim value, but also to create opportunities for future interactions that could benefit both parties in the long run.

Negotiation doesn't have to be a zero-sum game; knowing when and how to leverage distributive strategies can significantly enhance your business success.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance. She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

Tags:  #Jenny Holly Hansen #Distributive Negotiation #New Contracts #Resolving Disputes #Win-Lose Negotiation #Information Discovery

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