My last post sought convince you that now—in the midst of the COVID crisis—is precisely the time to barter. In brief, the point was that many people now have little choice but to barter, that barter is a better way of negotiating with family and friends, and that barter can help us both deal with short-term shortages and become better negotiators in the long-term. In short, bartering can make life negotiable.
But this all begs an obvious question: How? That is, how to barter effectively? So in this post, let me introduce a critical feature of bartering—the double coincidence of wants—along with three critical implications for bartering better.
As noted in my last post, bartering involves trading whatever you have for whatever you want. For a direct trade to happen, however, you have to meet one very specific condition: You have to want exactly what another person has and have exactly what another person wants—a condition known as the double coincidence of wants. As implied by the name, it can be challenging to the point of utterly coincidental to find a person and trade that satisfy that condition.
But a little reflection on the double coincidence reveals at least three ways to make it less coincidental and more attainable—principles that anyone who barters routinely knows well (and anyone who seeks to negotiate effectively should too, as described below):
Understand yourself holistically: The first step in satisfying the double coincidence is understanding your own side of the coincidence holistically—that is, identifying not just what you want from a bartering trade but also what you’re offering. Say you desperately need some flour for bread: That’s great, but no one’s going to give it to you if you can’t clearly articulate what you’re offering in return. And, while you’re at it, you might as well identify some other things you need—just in case they’re short on flour but happen to have some coveted toilet paper, for example.
Discuss multiple issues: It’s little use identifying your need for flour and TP—or your willingness to offer papier-mâché dolls and mow their lawn—if you’re not willing to raise all these issues in the discussion. And even if you do, it’s little use unless you prompt them to do the same, to talk about whatever it is they need and can offer. Talking about all kinds of things might seem random and scattered; at first, maybe they’ll look at you funny when you mention TP and papier-mâché in the same sentence. But a seemingly random discussion of multiple needs and offerings is often the only way of satisfying the double coincidence.
Seek out multiple partners: Sadly, the first person you approach may not have any flour or TP on-hand; or maybe they do but have no interest in your papier-mâché or lawn-mowing. But by approaching several people, time-consuming as it is, the double coincidence becomes substantially less coincidental. Surely someone with some flour needs some beautiful papier-mâché! Barterers know that theirs is a multiparty endeavor.
These principles, among others, will help you barter better. As described in my book, however, that’s not all! They’ll also help you negotiate better—even when you’re negotiating over money. Indeed, no negotiator can truly excel without understanding themselves holistically, discussing multiple issues, and talking to multiple counterparts. So now’s the time to barter, both for its own sake and for the benefit of your future negotiations. Hopefully these tricks of the “trade” can help you.
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:
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.
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.
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.
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.
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!
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:
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).
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.
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.
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.
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.