ORGA 330: Skill Development Through Negotiation Practice Activity

This assignment details a practical exercise in negotiation, conducted in a retail setting to purchase a laptop. The student leveraged pre-emptive research on competitor pricing and manufacturer costs to negotiate a better deal, employing tactics such as letting the seller state the initial price, using silence to encourage further discounts, and requesting additional perks like extended warranties and free delivery. The reflection highlights the importance of preparation, strategic silence, and understanding the seller's perspective to achieve favorable outcomes. The student also recognized the value of exploring multiple retailers to maximize negotiation leverage, planning to incorporate this approach in future purchases. The assignment references academic works on negotiation and persuasion to support the practical application of these skills.

Essay: Practical on skill Development.
Name
Date
Negotiation is a process of coming to a mutual agreement, amongst two or more individuals or
groups who comes with different ideologies and perspectives on the same area.
I went to the mall to buy a new laptop on Tuesday morning as that’s the time when the sales men
are less busy. I went there fully armed with knowledge of the prices and offers that other sellers
were offering for the same laptop, and also the price at which the sellers get them from
manufacturers by going through their websites. I went to the first retailer, he showed me a laptop
for 1050$ and when asked to he offered me 5% discount after explaining me about the laptop. I
showed him that I was interested to buy from him but would like to go and check for the prices
of the same from somewhere else so that he negotiates even more. Now since he couldn’t afford
to lose the sale, he offered 3% more discount.
Further since I wanted to bag maximum benefits in a single price, I asked the seller to provide
me with free extended warranty along with free delivery and he disagreed so I kept silent
showing him my unwillingness to buy and the seller kept on filling my silence and after much
negotiation he finally gave me the laptop at 966$ along with the free extended warranty and
delivery charge.
In getting the deal cracked I applied following checklist
 Homework
The buyer should have the knowledge of the prices that other suppliers are
offering for the same product, as it creates pressure on the seller to charge low price. In
addition the person should be aware of the price at which the seller gets the product from
manufacturer. Similarly I did my homework thoroughly and when the seller was not
ready to reduce the price I hinted him with the price that I was getting from other seller.
 Make the seller Name a Price First
If the buyer names the price first there could be a chance of seller agreeing to the
same and hence ending negotiations even if seller was willing to negotiate. So I waited
for the seller to name the price first.
 BE quite

When the supplier asks for the price, silence from the buyer side makes the
former uncomfortable and insecurity of losing a sale will provoke him to bargain to
justify the offer. I made silent thoughtful looks which made the seller even more insecure
resulting in more discounts.
 Ask for extras
When it comes to the idea of the buyer that the price can’t be negotiated more, asking for
extra perks can also help in getting the product at a normal price. For example asking for
extended warranties, free installation and shipping. So, I also asked for extended
warranties free of cost.
 Pay in Cash
One can get more discounts by paying the amount in cash since the retailers
would not get charged for credit card fee. So since I wanted to get extra reduction in
prices, I went along with cash and was able to get a favorable price.
By this activity I came to know Negotiation effectiveness is not only beneficial,
but it overcomes the missed opportunities that may arise due to poor negotiation skills. In
addition I also learnt that one can negotiate more by going to more than one retailer and I
will certainly follow this for my next buy.
Referencing
Negotiation skills Jaccard, J., & Jacoby, J. (2009). Theory construction and model-building
skills: A practical guide for social scientists. Guilford Press.
Behrmann, M. (2016). Negotiation and persuasion. Boston, MA: Hogrefe Pub.
Pruitt, D. G. (2013). Negotiation behavior. Academic Press.
Olekalns, M., & Adair, W. L. (Eds.). (2013). Handbook of research on negotiation. Edward Elgar
Publishing.