Is now the time to barter?

The crazy COVID situation has taught us many important lessons about negotiation—lessons that should make life negotiable whenever it returns to normal.

But COVID also holds at least one negotiation lesson that can make life negotiable now—one that, taken seriously and implemented immediately, could help us navigate this increasingly trying time: the power of bartering (trading the goods and services we have for the goods and service we need).

Immersed in a monetary economy, many of us scarcely consider bartering. When we need some toilet paper or flour, we pay some money to get them. When someone needs our labor or something else we have or produce, they hopefully pay us. So ingrained is the monetary approach to need satisfaction that even COVID is unlikely to change it soon.

Still, the following five features of the COVID situation do render the monetary approach marginally less relevant and bartering much more powerful than they were mere months ago. Now might be a good time to barter because:

  1. Money is scarce: As industries dry up, layoffs set in, and salaries get slashed, many of us will find ourselves with fewer greenbacks in our wallets and bank accounts. So we will obviously need to supply the parties who can meet our needs with something else of value. The goods and services we have, when bartered, offer an alternative means of exchange.
  2. Time is plentiful: Just as our bank accounts go empty, so do our calendars. Bereft of at least a few long commutes, unnecessary meetings, and social activities, many of us have at least a little more time on our hands. Whereas the absence of money is a liability, however, the absence of commitments is an asset, as it provides us with the additional free-time to put our diverse talents—from baking, to video-editing, to Etsy selling—to potentially marketable use.
  3. It fits with family and community: As most of us spend much more time with our families and communities—and much less in a physical workplace—we need negotiation strategies suited to the setting. Our family members might be offended if we offered to sell them our bread; our neighbors might resent if we offered to rent their garden tools. But anthropological research as well as common sense suggest the bartering is more relational and thus more appropriate as a means of negotiating with family and friends. Fewer family members might get offended if we asked them to teach us video-editing after we shared our bread; fewer neighbors might resent our borrowing their tools if we emphasized they could borrow ours later. Oh, and since it’s more relational and less contentious, bartering may even offer a needed source of social connection.
  4. Everything’s under- or over-supplied: As we all know, many traditional sources of TP, PPE, flour, and the like (i.e., stores) have become unreliable. Conversely, those of us who stocked ourselves up may find our shelves overflowing with reams of TP (or whatever else). In that world, where money-accepting stores are unreliable and friendly neighbors with TP deficiencies are cropping up everywhere, bartering may offer an alternative way of matching supply to demand.
  5. It’s a better mindset for negotiation: Even if we weren’t living in a world with unreliable stores and widespread TP deficiencies, and even if we weren’t negotiating with friends and family instead of business partners, negotiators of all stripes may perform better when they treat their task as a bartering trade rather than a monetary transaction—even when their task involves money. Indeed, that’s the whole point of my book, The Bartering Mindset. So trying out bartering can make us a better negotiator now, and we might as well use our newfound free-time to give it a try.

In sum, for all the horrible aspects of the COVID situation, it holds some important and potentially helpful lessons about negotiation, few more urgent than the power of bartering. Happy trades to you!

Bartering over burgers: How trades and transfers can make you happier and healthier

I love to eat out with my family. But I and any other adult who eats at restaurants receptive to small kids often encounters a problem: The meals on offer don’t quite match their culinary or health goals. In these situations, and in accordance with my book The Bartering Mindset, I’ve found that trading and transferring resources can make everyone happier—and life more negotiable.

Allow me to explain.

My family and I frequent a favorite American restaurant. Despite the many tasty dishes, most have a few features that don’t entirely satisfy. In particular, most taste great but come in unnecessarily large portions, or with incredibly unhealthy sides. What’s more, the kids’ menu is disappointingly small. In sum, most of the menu options promise a less-than-entirely satisfactory meal to one or more parties.

And that was the situation facing us on a recent Friday. Sitting there staring at the menu, I wanted a burger that happened to come with an unnecessary second patty and an overabundance of fries. The older of my two young daughters wanted a burger but couldn’t find one on the kids’ menu. My wife’s selection came with a bun she never eats. The younger of my two young daughters hankered for some fries but only wanted mains that didn’t come with them—in particular, plain pasta. And she scoffed at the meatball that would actually accompany the pasta. Finally, those potatoes that came with my wife’s dish looked awfully good to me.

Can you guess what we did? That’s right – we transferred and traded food! Specifically, we sent:

  1. My burger to daughter: I offered my second patty to the daughter who wanted a burger, and thereby eliminated my temptation to eat it (which, of course, required a negotiation with the waitress, who was not accustomed to serving the second patty on a separate plate).
  2. Wife’s bun to same daughter: When the daughter facing the prospect of a bun-less patty complained, my wife happily offered to unload the bun she never ate. Needless to say, a reduction in complaining benefited us all.
  3. A few fries to other daughter: Once the younger daughter agreed to eat the plain pasta and I later observed her doing so, I fulfilled my promise to give her some fries. This allowed her to enjoy the preferred dinner option plus some fries while further advancing my own health.
  4. That daughter’s meatball to me: In return, I politely requested her entire, delicious, homemade meatball, which I knew she didn’t want (and I couldn’t understand why). This put my health right back where it would’ve been if I had eaten the fries—and perhaps the second patty.
  5. My wife’s potatoes to me: I asked to sample my wife’s potatoes. She obliged, perhaps in tacit anticipation of some reciprocal fries.

This idiosyncratic and slightly embarrassing story illustrates a much broader and more important point: Neither mealtime nor life typically satisfies every last one of our wants and needs. But by openly exploring whether to transfer and trade resources with those around us, we can often make several parties happier at the same time. Indeed, as my book suggests, that’s the essence of negotiation. So whether it’s as simple as a meal or as complicated as a business transaction, I’d encourage you to barter your way to a better life.

Small wins: Or motivating kids to eat

High-stakes negotiations often go south when the parties perceive a lack of progress. Think trade-related brinksmanship, abandoned mergers, and athletes who walk away from failed contract extensions. In such situations, the absence of progress is decisive. For the same reason, though, the presence of small wins—tiny victories offering at least a glimmer of hope—can help avert disaster.

More immediately relevant to most of us, though, are negotiations that happen closer to home: negotiations, for example, with children who refuse to eat their darn food.

Here too, the lack of progress can lead to negotiation breakdown. And here too, the presence of small wins can make life negotiable. An anecdote to illustrate:

Suppose that I had two daughters and the younger of the two—let’s call her Penelope—was taking forever to eat her food and typically leaving most of it uneaten, day after day. Not that I do or she is. What would a despairing parent do?

Well, an increasingly insistent set of demands wouldn’t work: Penelope would just dig in her heels in the face of escalating parental frustration, trust me.

But what about creating some opportunities for small wins? What if Penelope, on a nightly basis, was actually failing to eat because she saw so little chance of finishing her entire meal and thereby getting the coveted cookie for dessert? Would small doses of dessert scattered throughout the meal serve as a stronger motivator than one big dose at the end?

And such I would decide to do with Penelope, if she was real and really resisting her meals. Specifically, I’d say that for every five bites of real food, she gets one small bite of the coveted cookie. And, lo and behold, it mostly worked…eh hem, would work.

Importantly, the strategy doesn’t involve any change in the reward structure—Penelope gets a whole cookie for a whole meal, regardless. So the strategy is less about upping the ante and more about instilling confidence in Penelope—specifically, the confidence that she can in fact make it to the next bite of cookie, seeing as it only lies three bites of pasta away, rather than a whole bowl.

Just as a president’s subtly positive statement can get a trade deal back on track, a subtly subdivided cookie can help avoid disaster at the dinner table—at least until the little negotiator requests the cookie after two rather than three more bites of pasta.

 

Are kids better negotiators?

Does older mean wiser and better? In negotiations, the answer is far from clear. Indeed, as most parents can attest, kids are often surprisingly adept negotiators, displaying a plethora of negotiation skills their elders have long since forgotten. So in hopes of making parenthood and adulthood more negotiable, let’s unpack some of the long-forgotten secrets of our precious little negotiators:

  1. Sticking to their guns: Most kids have shockingly firm aspirations. Come hell or high water, they are going to get that toy, eat that junk food, or watch that particular show. In other words, they know how to fixate on their aspirations until they win! Since fixating on firm aspirations is a foundational negotiation skill that most adults have long since suppressed for social harmony, kids often succeed where adults fall short.
  2. Asking open-ended questions: My six-year-old Petunia’s favorite word is “why,” and she often utters it immediately after a nonnegotiable decree: Clean that mess, put your PJs on, eat that cereal—now! But here’s the interesting part: I don’t always have a good reason why that mess, those PJs, or that cereal really requires immediate attention. And my Petunia’s “why” quickly surfaces as much, which she quickly exploits. Long conditioned to comply with authority, most adults quash their curiosity and suppress their open-ended questioning, thereby settling for a plethora of suboptimal situations.
  3. Bartering: There’s nothing more natural to a kid than trading their candy, swapping their chores, or bartering their Christmas presents. To their own tremendous benefit, kids innately barter. For some odd reason—probably the prominence of monetary thinking in our own adult lives—most adults have long lost touch with bartering, as well as the creativity it requires (as described in my new book). So, most adults ignore or never really perceive the possibility of many trades that would improve everyone’s lot.
  4. Understanding alternatives: Kids innately understand everyone’s alternatives, and particularly their relative strength. For example, they know that if they cause a ruckus in a restaurant, the parents’ alternative of paying for an uneaten dinner and settling for rotten leftovers is worse than their own alternative of going home for free and enjoying some Kraft. Put differently, kids inherently understand their leverage. Perhaps chastened for their overly aggressive maneuvers in the past, most adults don’t see or don’t act on the leverage they have.
  5. Developing alliances: Kids don’t see the existence of two parents as a hindrance; they see their dual counterparts as an opportunity to divide-and-conquer. They know which parent is more inclined to give them soda, less inclined to mind their sloppy homework, or more inclined to forgive their misdeeds. So they naturally build an alliance with the more conciliatory parent in a given situation, entreating that parent to convince the other. Adults, perhaps aware of the social and political risks of alliances, seem less comfortable in building them.

In my opinion as a parent and professor, these are just a few of the many ways that kids tend to outperform adults in negotiations. Of course, adults generally have a good reason for their behavior: If they acted like a kid indiscriminately and across situations, they’d be kicked out of every social circle and organization. So the message is not to become a kid completely and at all times. It’s to recognize the true negotiations we face and use our cultivated wisdom to consider whether a small dose of childhood audacity might help.

Negotiating the holidays: Five common negotiations in a magical time of year

With the holidays fully upon us, I thought it might be useful to recap some negotiations you’re likely to face amidst the festivities—along with some research-based suggestions for making them negotiable. I’m pretty sure you’ll face at least one of the following negotiations over the next few weeks:

  1. Deciding where to spend the holidays. Many of us will have a robust discussion with our better halves as to where to spend the holidays—and for how long. For some suggestions on avoiding a less-than-festive meltdown in the process, you might want to review this post.
  2. Dealing with annoying seatmates. Many of us will encounter fellow holiday fliers who…how shall we put this…have a slightly different take on in-flight decorum. For some suggestions on keeping the skies friendly, check out this post.
  3. Finding time for family. Many of us will need to physically pry ourselves away from our desks to spend the desired time with family and friends. For some tips on negotiating a reasonable work-life balance when it’s needed most, you might want to review this post.
  4. Counteracting predatory retailers. When purchasing our presents, many of us will encounter amazing deals. Others will encounter “amazing” deals—deals that retailers would love for you to misinterpret as such. To recognize and counteract a particularly pernicious version of this trap, consider the following post and paper.
  5. Giving appropriate and reacting appropriately to gifts. It’s the season of giving and receiving, but many people struggle to devise the appropriate gift or react appropriately when they receive the annual fruitcake. So consider reviewing the following posts on giving and receiving for some insights from the negotiations literature.

And now, here’s ho-ho-hoping your holiday becomes a bit more negotiable.

Win-win or win-whatever? Setting our sights just a little bit lower in negotiations

Why is it that most people—even those who take (or teach) negotiation classes—still find it hard to negotiate? I’m here to argue for one of many reasons: the possibility that in many situations, most of us set our sights just a little too high.

Anyone who’s taken (or taught) a negotiation class can summarize the course in a single phrase: “win-win.” But now let me convince you of a less ambitious but potentially more common and attainable goal that can still make life negotiable: win-whatever.

A story to explain:

My two daughters recently visited a fine-dining establishment—let’s call it Chick-pat-E—both receiving the same book as a giveaway with their kids meal. Arriving at home, one put their book on the table, and the other let theirs fall to the floor. Which is which, no one knows.

Later that day, my six-year-old arrived at the table, claimed the table-book as her own, and started to read it. My three-year-old, witnessing said events, developed uncontrollable fits of rage. “That’s my book!” she insisted immediately, repeatedly, and with increasing levels of agitation. Now, I had no idea whose book was whose, but I leaned over to my six-year-old, winked at her, and asked her to be the “big girl” by accepting the (identical) book on the floor. And my six-year-old, to her great credit and with the benefit of three years, begrudgingly recognized that it really didn’t matter. So she gave the table-book to the three-year-old and accepted the floor-book as her own. A win for my three-year-old and a whatever for my six-year-old.

Now what would a win-win have looked like? Perhaps the three-year-old could’ve claimed the table-book today and the six-year-old could’ve claimed it tomorrow? Or the three-year-old could’ve gotten first dibs at the next Chick-pat-E giveaway? Or the six-year-old could’ve gotten the table-book but gifted one of her other books to the three-year-old? All interesting and innovative solutions but hard to execute in the presence of an increasingly agitated three-year-old. A win-win in this case would’ve been awfully difficult.

Reflecting on the story, is it possible that many of us find it hard to negotiate because we’re shooting just a bit too high? Are we ambitiously aiming for win-win when a win-whatever would really do? As great as win-wins can be—and I really believe it—I’d suggest that win-whatevers are often much easier to find and execute. And I do suggest, in my negotiation classes, that they’re just as important for getting to yes. So, the next time you’re struggling to identify a win-win way of divvying up housework, deciding on work responsibilities, or allocating giveaways from Chick-pat-E, consider setting your sights just a little bit lower—not way lower on conflict or avoidance or win-loss. Just a little bit lower on win-whatever. I think you’ll start to see indifference as a virtue.

When the equality rule fails: The case of four shells

If I’ve learned one thing as a negotiation professor, it’s that the fairest and most obvious ways of dividing resources often seem unfair and non-obvious to the parties involved. Consider the equality rule. What could be fairer than a 50-50 split? Unfortunately, the parties embroiled in a negotiation don’t always see it that way. So we need an alternative approach to make life negotiable.

To illustrate the dilemma and a set of potential solutions, let me recount a story.

My family and I recently visited the beach. One morning, I took a long run and decided to pick up some cool shells for my five- and three-year-old daughters. At first, I found three shells, thinking that more than sufficient. But then I remembered that three shells allocated to two young ladies would elicit open warfare. So I searched high and low for a fourth, finding an amazing orange one that I expected to settle the matter. Two shells for each daughter. Equality rule!

But I couldn’t have been more wrong. And I should’ve seen it coming: Both daughters regarded the orange shell as way cooler than the others, so both daughters clamored for it.

The equality rule, so obvious in theory, completely failed in practice. And what to do then? I have to admit, I didn’t immediately know, as I was shell-shocked at this incomprehensible failure of the obvious. With reflection though, I came to see that the situation actually presented many different solutions:

  • Flip a coin: I could flip to determine the lucky recipient of the orange shell, give that daughter one more, and give the other daughter the remaining two. Problem is, someone would be incredibly dissatisfied with the fickle hand of fate.
  • Share the orange shell: If the equality rule didn’t work, maybe a quasi-communist rule would. We could all agree to share the orange shell, which is great but would bring all the baggage of common property, even while leaving three shells to divide among two people.
  • Search for another orange shell: Perhaps the ideal option, this one came with an obvious problem: I’ve never seen a shell quite like that. That’s why everyone liked it. So it wasn’t going to work.
  • Return the orange shell to its marine home and find a fourth: While this would’ve technically solved the problem, any parent can tell you that it would’ve elicited far bigger problems.
  • Let the daughters sort it out: They need to learn that life’s negotiable after all, so why not let them figure out a solution of their own? I have to admit that I considered this option carefully, but I thought it might be better to guide them toward a solution.
  • Three-for-one trade: I could give one daughter the orange shell and the other daughter all three of the more pedestrian shells. That seemed promising, but they flatly rejected it. Three pedestrian shells apparently did not compare to a glorious orange one.
  • Figure it out later: Having ruled out all the other obvious solutions, I could think of only one more at the time. Why not wait until the initial allure of the orange shell had worn off a bit? Then maybe everyone’s rationality would return, making the sort-it-out or three-for-one solutions more feasible. And that’s essentially what I did, hoping for a three-for-one. Turns out, the problem got a whole lot easier when someone mentioned the candy store, and everyone forgot the shells.

So what’s the point of all this? First, that even the simplest and least controversial of situations can generate unexpected conflicts and the need for negotiation. Second, that the equality rule can easily fall flat, and we have to be flexible enough to abandon it. Finally, that the key to any negotiation really comes down a combination of creativity and patience. Once the negotiator engages their creativity and indulges their patience long enough to generate some options, a workable solution usually presents itself. Combine a little creativity and patience, and life’s a beach!