Bargaining Chips
What are Bargaining Chips?
Bargaining chips are the totality of the distributable and tradeable values in a negotiation. The more points are on the table, the more room arises for trading and value-creating solutions.
Bargaining Chips in Detail
Bargaining chips (the German “Verhandlungsmasse”) refers to everything that can be given, taken, or traded in a negotiation – not only the price, but also quantity, term, payment conditions, service, warranties, exclusivity, dates, additional benefits, and much more. Their significance: the larger and more varied the bargaining chips, the more possibilities there are to find a solution that is good for both sides. Those who negotiate over only a single point (such as the price) quickly end up in a hard zero-sum struggle. Those who instead include further points can trade via logrolling (each gives in on what is unimportant and gains on what is important) and thereby enlarge the “pie” (integrative negotiation). An important step in preparation is therefore to consciously expand your own bargaining chips: which points besides the obvious one can I bring in or offer? What is worth a lot to me and costs the other side little (and vice versa)? Those who creatively expand the bargaining chips and know both sides' priorities create room for better, more viable agreements.
In practice, the bargaining chips are the totality of all points that can be distributed, traded, or shaped in a negotiation – not only the price, but for example also quantity, term, dates, service, quality, payment conditions, warranties, or future cooperation. Those who consciously expand the bargaining chips create room for integrative solutions: the more variables are in play, the more easily packages can be put together via logrolling, in which each gains where it is important to them. A pure fixation on a single number, by contrast, narrows things unnecessarily and quickly leads to distributive haggling and deadlocks. It is therefore worth gathering, already in preparation, everything that is negotiable and what value the points have for both sides. Consciously shaped bargaining chips are a key to win-win results.
How do you use Bargaining Chips?
The bargaining chips comprise all tradeable and distributable values. The more points are included, the more room for trading (logrolling) and value-creating solutions. An important preparation step is to consciously expand your own bargaining chips.
Bargaining Chips – Examples in Practice
Instead of only the price, two parties negotiate term, service, and quantity as well. A seller brings in a low-cost additional benefit as a bargaining chip. Someone deliberately expands the tradeable points before the negotiation.
Bargaining Chips: Key Features at a Glance
- Definition: the totality of tradeable values
- Scope: price, quantity, term, service, and much more
- Benefit: more room for solutions
- Technique: logrolling and value creation
- Preparation: expand the bargaining chips
Related Terms
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Bargaining Chips: Frequently Asked Questions
What are bargaining chips?
The totality of the distributable and tradeable values in a negotiation – not only the price, but also quantity, term, service, and much more.
Why are bargaining chips important?
Because more points on the table create more room for trading and value-creating solutions – those who negotiate over only the price end up in a zero-sum struggle.
How do you expand the bargaining chips?
By thinking beyond the obvious point: which further points can I bring in? What is worth a lot to me and costs the other side little?
How do bargaining chips relate to logrolling?
Larger bargaining chips are the prerequisite for logrolling: only when several points are in play can you trade along differing priorities.