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Running head: MANAGING NEGOTIATIONS1 Managing Negotiation Name Instructors name
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MANAGING NEGOTIATIONS2 Introduction When negotiating to buy a car, one can enter a dealership to negotiate with the salesperson or put a request for bids in the website. When the buyer knows what they want is a key factor in the decision-making process. Car negotiated The] buyer wanted a race car, which she has always wanted, she was also looking for the latest model, which was purchased but shortly returned to the dealers or used for less than a year. The other factor was that the buyer wanted a race car, preferably a Subaru brand, a used car but a 2017-2018 make. When the price is the main factor to be considered in the negotiation process, then face to face negotiations with adequate preparations can make the process simpler. Why the interest in the vehicle? The buyer wanted a race car, and she knew about Edmonton’s existing Subaru BRZ, 2018. The buyers budget was around $250,000, which is the cost of the Subaru BRZ. The buyer wanted a car which was an alternative for the traditional SUV which was mid-sized. The Subaru can also do most of the things an SUV can do, and more. When it comes to the functionality, it has an automatic transmission with DOHC engine. It has a system with smartphone integration, built-in touchscreen, and informant information system. The car has a power liftgate, sunroof, and activated dual zone to condition the air in the car when it is too sunny. The car has a blind spot detection as well, rear camera and heated seats.
MANAGING NEGOTIATIONS3 The strategy used in the negotiations One strategy used by the buyer was bringing out the big gun- acting like they have power- this strategy sometimes works because those considered as heavy hitters are left to negotiate the contract and most of the time they win. When the buyer was not able to strike a deal with the sales, she avoided a quick fixing and ask them to reconsider their decision she will come back the following day to hear their decision. The short break was a strategy to allow for review and reconsideration form the salesperson. The other strategy was creating value in the business where she said she would also come to buy another car for her daughter’s sixteenth birthday in the next few months. This helped in building trust, and the dealers could not forego a chance of doing business with the buyer again(Ross, 2010). Negotiation tensions and how they were managed The negotiation tensions between the buyers and the dealers were the sale-persons offered lower prices to lure the buyer then when the buyer came on-site, they changed the price. The other tension was the rise of potential disputes which are often inevitable. Also, in a business deal where the stakes are too high, the consequences can be severe; hence there was tension for both parties that a wrong decision is not made. The tensions were managed by creating an open management system of information, where the parties could build trust and understand each other. The tensions were also managed through conversations where the parties discussed the burning issues and bending to accommodate each other. Effective negotiation techniques and effectiveness
MANAGING NEGOTIATIONS4 The BATNA technique used here was that the sales-person had to forego their profits. The buyer offered $25000 for a second hand Rally Subaru, 2017 and therefore, the manager could choose to pay them out of their pockets. This made the dealers forego their commission to make a huge sale. The buyer petered a price where, if they would not accept, she had reached the resistant point, where only walking away was the other option. The sales side, on the other hand, had a BATNA, that if the minimum amount required were not offered, they would walk away. They negotiated a price, and they agreed that the difference of $5000 that the dealers were asking would be settled in reasonable installments. Closing the negotiations- While closing the negotiations, the buyer promised to bring more business to the car dealership. This made them quick also to close the deal with her as they gave her what she had wanted. It is always important that one enters the negotiation process without feeling intimidated and it is a win-win for everyone. The other negotiation technique used in the scenario was that the buyer did not listen to the problems of the other side, ads to why she could not be given the car at a price she thought was reasonable for both parties. She cared to listen to them, but she did not absorb what they were saying and still went ahead to negotiate for what she wanted countering the reasons given by the other party. The biggest technique was that the negotiator, in this case, paid attention to the other parties’ concerns, which helped in establishing what the other side was thinking. Afterward, she paid a lot of attention to timing; she knew when to press and when to wait and give the other side time to reconsider their position. She was wary of not pushing too hard, thus not compromising anyone’s position (Siedel, 2014). Recommendations
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MANAGING NEGOTIATIONS5 One should master their negotiation techniques so that they can use the techniques to their advantages.Anticipatingdisappointmentsisalsoatechniquewhichmakesonenotto compromise while declining at the right time. When in doubt, one can always put up an offer which is fairly good, and negotiate the end of the agreement by suggesting arbitration in case of any misunderstandings. This can mostly be helpful when one is in doubt about one of the party’s good-faith. The power of silence also remains unbeaten in negotiations. One should draw the power of silence by asking questions, waiting for the other party to speak and make counter- offers and ask questions before they make their offer. Sometimes, one can put the other party off- balance by asking questions, which can give an insight as to how that party might want the business to be carried out(Schultz & Doerr, 2014).
MANAGING NEGOTIATIONS6 References Ross, G. H. (2010).Trump-style negotiation: Powerful strategies and tactics for mastering every deal. John Wiley & Sons. Schultz, M., & Doerr, J. E. (2014).Insight selling: surprising research on what sales winners do differently. John Wiley & Sons. Siedel,G.J.(2014).NegotiatingforSuccess:EssentialStrategiesandSkills.VanRye Publishing, LLC.