Before you split the pie, do you even know what it is?

Negotiation isn’t about how much. It’s about ‘what.’

“I want 70% because I did the heavy lifting.”
“You only get 30% because I brought the deal.”

But the reality is:

And in any negotiation.
The pie doesn’t exist until you both sit down.

Let’s break it down.

The total value on the table isn’t the real pie.

The real pie is the extra value created when both parties work together.

Everything else? Just noise.

That surplus, that neither of you could get on your own, is the only thing worth negotiating.

Here’s an example.

You’re aiming for a $100k deal.
The client wants the same work for $60k.

Looks like a $40k gap. But is it?

Let’s say:

• You could walk away and land a different project for $85k

• The client could hire someone else for $65k

Now the real pie isn’t $100k or $60k.
It’s $20k, the mutual surplus.

Because:

• Your fallback is $85k

• Their fallback is $65k

• The difference between those two? That value is only created by working together

That’s what you’re really negotiating over.

There’s a valuable lesson here.

Negotiation isn’t trying to get more.
It’s not shouting louder or claiming credit.

Negotiation is who brings what to the table, and how much of the pie only exists because you’re both in the room.

Until you define that?
You’re just signaling.
You’re not negotiating.

Quick Poll

5 Takeaways from the negotiating table

• BATNAs shape the pie.
  You need clarity on what you could get alone, and what they could get alone.

• Surplus is the true battleground.
  The gap between fallback and joint outcome is the only real value worth dividing.

• “Fair” is not 50/50.
  It’s based on how much each side contributes to the pie.

• Posturing wastes time.
  Arguing over slices before defining the pie gets you nowhere.

• Transparency builds trust.
  Clarifying the pie helps both sides feel the process is fair, even if they don’t get everything.

My final words today

Most people skip straight to the slicing when negotiating.
They fixate on numbers, anchoring high, conceding low.

But when negotiating, I don’t just slice.
I define.

I know:

• You can’t fight for more until
  know what’s there.

• You can’t build agreement until you agree on what’s being built.

• And you can’t lead a negotiation if all you’re doing is reacting.

Define the surplus.
Negotiate from there.
That’s how you move from argument to agreement.

See you next week
Until then, enjoy your pie.

Scott