Question

reflect on a time what you were engaged in a negotiation (or should have negotiated in the situation rather than passively accept the decision of another) -- this could be a negotiation at work (e.g., salary negotiation, work scheduling) or in your personal life (e.g., making a major purchase, making vacation plans loved ones).

Write a brief essay (~450 words) that describes the situation that involved (or should have involved) negotiation. Also describe the implications of your negotiating style for the five phases of negotiation described in the text

Answer 1

Situation: bargaining at a garments store for a saree

Steps and implications:

Step 1: Preparation and planning- the first step would be to conduct a thorough research/due diligence regarding the subject. i.e, price of similar sarees, price in competing stores, being aware of the quality, type of saree, margin etc on such sarees, their demand/supply basics etc. This would enable the negotiator in being well informed about the subject and will enable in better negotiation.

Step2: Definition and Ground rules- being frank with the shopkeeper regarding the price that you are willing to pay. This might be tricky depending on the kind of person you are dealing with. Hence, being subtle or too direct and the extent of the same can vary.

Step 3: Clarification and Justification- when the bargaining process starts, we should start from a price which is equal to 50% or above the price quoted by the shopkeeper (again, this would vary depending on the type of store, brand etc). As both the partied try reaching an interim price point, keep in mind a target price beyond which you won't/can't shell out money. Keep the bargaining firm and also support your stance with appropriate justifications (like quoting competitors' prices, margin etc)

Step 4: Problem solving: finally when you reach a point which seems like a dead-end, try and pacify the situation with explaining how you wish to buy this but at the same time don't wish to over pay. Make him understand the importance of a loyal customer and how positive word of mouth will attract more and more customers.

Step 5: Closure and implementation: as you both reach the decided price point, close the process on an amicable note, thanking him for his service. Do mention how great you feel buying such a good product and that you will come back for sure with friends and family. This enables a mutually beneficial relationship for the future.