The cost value matrix in trading


Last Published  01 August 2012

The ideal ‘win/win’ negotiation is where you have something of greater value to the other party than it is to you and the other party has something of greater value to you than it is to them. You agree to trade and are both better off than you were before.

The ‘somethings’ available to trade can be tangible (such as price, quantity, delivery) or intangible (such as reassurance, esteem, excitement). By understanding the relationship between cost of supply and value to the other party, following this tool, your participants will have more variables to trade and will be able to trade on better terms.

Tool aim
  • Enable participants to trade more effectively by helping them understanding the cost-value matrix.