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Negotiations should all be win-win. After all, why shouldn't everyone
win? Unfortunately, it's a myth that every negotiation has a potential
win-win outcome. Many common types of negotiations are win-lose.
For example, negotiating the price of a used car is win-lose.

Example of Win-Lose Negotiations:
Used Car Prices
A sales person and a customer negotiate the price of a used car with a
fair market value of $25,000. If the car sells for more than 25k the
customer loses. If the car sells for less than 25k the sales person loses.
If the car sells for exactly 25k no one wins, no one loses. A win-win
outcome isn't in the cards.

There are 7 types of negotiations. It's important to consider which type
you're facing — each demands a different strategy.

1. WIN-LOSE NEGOTIATIONS

In game theory they call a win-lose negotiation a zero-sum game. The
vast majority of games are zero-sum. A common analogy for a zero-
sum game is dividing a pie. The pie doesn't get smaller or bigger —
the players play a game to decide who gets the bigger slice. If you're
facing a win-lose negotiation focus your strategy on determining the
other party's minimum requirements (e.g. bottom price).

2. WIN-WIN NEGOTIATIONS

Win-win negotiations involve expanding the pie. For example, if two
people decide to go into business together: their partnership
negotiations are win-win. One partner may win and the other may
lose. However, a win-win outcome is possible because they hope to
make money on their investment (expand the pie). Salary negotiations
and business-to-business sales can usually be considered win-win.
Win-win negotiations may be just as focused on building a bigger pie
as dividing the pie fairly. Every effort should be made to keep
negotiations friendly and constructive.

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