Question
Kelly Sarber's negotiation strategy is highly relevant in today's business environment. It demonstrates the importance of understanding the needs and challenges of the other party. By offering a solution to Oceanside's sand-loss problem, Sarber was able to secure a contract despite her higher bid. This approach, known as value-added negotiation, is increasingly important in today's competitive business landscape where simply offering the lowest price is often not enough. Businesses need to find creative ways to add value and meet the unique needs of their clients.
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Kelly Sarber worked in sales for a waste management firm in Arizona. Looking to expand beyond the state, she was pursuing a contract in Oceanside, California. When the bids came in from the other companies competing for the business, hers was five dollars per ton higher, but she won the bid anyway. How did she do it? Sarber learned that Oceanside was struggling with an erosion problem and was dramatically losing the sand on its coveted beaches. In addition to needing trash hauled away, Oceanside needed a solution to its sand-loss problem. As part of her bid, she promised that her trucks would drive in a truckload of Arizona sand each time they came to pick up Oceanside's trash. Knowing what they needed enabled her to win the negotiation on favorable terms for both parties.
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