If you’re buying a car or a piece of real estate, aggressive may be the right strategy. But, when it comes to negotiating partnerships for bold, long-term creative pursuits, relationships and precedent matter. In fact, the relationship matters more than the extra spread you might gain from being aggressive.
When it comes to negotiating partnerships for bold, long-term creative pursuits, relationships and precedent matter.
When negotiating a deal that will result in an ongoing relationship, consider the “fairness” strategy. It’s simple: Have a discussion up front with your counterpart in the negotiation. Make the case that you want to reach a fair deal for both parties.
Then, in preparing to make your offer, put yourself in your counterpart’s shoes to determine what they should fairly expect (and deserve). Do the same thing for yourself. Ultimately, you will arrive at a number that can (hopefully!) be backed up with a transparent analysis that you’re willing to share with your counterpart. If the relationship is healthy, you will both want what’s fair.
Bottom line, the “fairness” strategy will pay off over time. Next time you enter a negotiation, think beyond the number. Remember that the end of a negotiation is the start of a relationship with the potential to create tremendous value over time.