Sales Negotiation Report

This report delves into the complexities of sales negotiation, analyzing various negotiation scenarios and strategies. It examines the win-win matrix, highlighting the importance of mutually beneficial outcomes and contrasting it with lose-lose scenarios. Real-world examples illustrate successful and unsuccessful negotiations, emphasizing the impact of factors like power dynamics, planning, and communication. The report also explores key variables in negotiations (price, volume, delivery, etc.), the importance of careful planning and preparation, and effective techniques for buyer positioning. Finally, it stresses the significance of meticulous record-keeping throughout the negotiation process, from initial planning to post-negotiation analysis, using a provided debrief sheet as a guide. The report concludes by emphasizing the importance of a collaborative approach to achieve long-term success in sales negotiations.

Sales Negotiation
Level 4
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Task 1: The win-win matrix
There are four positions that have been shown in the win-win matrix. The quadrant one and
three will be reached when one of the parties compromise on certain aspects of the deal. This
leaves another party with upper hand in some areas. These two situations will leave one of
the parties with a feeling of defeat. It is likely that the defeated individual might not come
into future deal with the other party to escape the same feeling of defeat and loss of any kind.
This situation is not favourable if the winning party is willing to keep the relationship strong
for future similar deals. It is necessary that they move to the win-win situation (quadrant
second). In this, it is ensured that the needs of both the parties are appropriately taken care of
and no members are at any form of loss (Klien et al, 2003). This leads to the successful
relationship in the future. The body language of the win-win parties reflects coordination and
harmony. Another situation is the ‘lose-lose’ situation where none of the party wins. This
situation arises when there is the situation of conflict and none of the parties want to
compromise on their statements. This situation can be avoided if both the parties consider
compromising on the areas that does not benefit the other party. As for example, a vendor is
selling product X to the client at $5,000 and the alternative is available in the market for
$3,000. The client is willing to take the product at $3500. Then in this case, deciding the
price at $4000-4200 can be considered as win-win situation
Task 2: The bargaining arena
One of the examples is negotiation between the local child care centres’ manager with the
board of directors for bringing some change in the policies. The issue was turnover rate
which was impacting the kids’ teaching. The policy was that the parents will deposit
advanced amount for their kids which will be used if last month’s payment is not made. Also
if the replacement of kid is found then the advanced amount will be paid back. The issue was

that the replacements were quick to be found and the centre has to pay back the advanced.
The manager wanted to change the policy to “if the parents take away their kids in mid-
session, then the advanced will be forfeited”. The board of directors considered it a one-sided
deal and rejected the request. This was the complete failure on the part of the manager.
Another example is related to the purchase of parking space. The buyer was willing to
purchase the space, while owner wanted to rent it to ensure a constant income. The
negotiation between the parties took place in favour of buyer and owner sold it as there were
no another buyer. This was the worst deal for the owner but winning deal for buyer.
Third example is the negotiation between a kid and parent when the parent is tries to counsel
the child to study by luring to toys. The negotiation failed as the child was not willing to pick
the book even after any form of attraction.
The final point of the agreement should not be the exact mid-point because in most of the
cases the mid-point reached has been found to be more in favour of the other party and loss to
other party (Stevens, 1978). Therefore, deal should be reached consideration of the position
of both the parties, and should not be the mere effort to reach the mid-point.
The factors that impact the position of the final point can be various such as the purpose of
each of the party. If the purpose is not monetary for one, then satisfaction on monetary level
deal will still be considered a failed deal.
Task 3: Variables
The negotiation with a supplier is being facilitated to supply thousand units of a product. The
variables that have been in consideration in this negotiation are price, volume, delivery,
contract period, and payment terms (Bazerman, 2000). Considering the deal to be win-win for
both the parties, below positions was reached for both the parties:

- Payment for the products will be at supplier’s quote
- The volume is factor to amount being paid
- Delivery will be as per buyer’s comfort
- The construct period for further consignment will be as per buyer’s discretion
- The terms of payment will be as per buyer
Task 4: Power
The organization I am representing provides local labour to the companies that come to
operate in the area. Our company is the only one that has the strong local network. A
company willing to manufacture shop enters the locality and wants some labour. The new
company has no local experience and thus cannot bring in labours on its own. Therefore, its
reliability on us was obvious. Our company can be replaced if other similar company comes
with strong local network which is currently less likely.
Task 5: Planning
Given below are the things that have been considered for the negotiation:
Power: It is necessary that the power in the negotiation lies with the individual who keep cool
(Lweicki, 2000). Therefore, holding onto the calm behaviour and ignoring aggression can be
the key.
Concession: It should be ensured that both the parties get things that bring happiness to each
of them. It ensures long term relationship.
Leverage: Presence of a plan with the limits must be set and the balance of power needs to be
maintained.

Resources: The consideration of the other party’s strength and weakness is necessary to
ensure that the right strategy can be picked to utilize their weakness and cover the deal in
favour.
Attitude: The attitude should be favourable to both sides. Behaviour resonating
competitiveness in negotiation might hamper the deal.
Location: The place should be selected as suitable. The impact of location has been found to
be huge. For instance, most of the deals have been finalized over the dining table.
If there are two of us, then the negotiation will take place in a restaurant at a dinner table with
the food preferences of the other party. If there are four people, then one person will take the
lead to discussing all the aspects of the deal and the rest of the three will agree to increase the
agreeability of the other party.
Task 6: Buyer Positioning
Given below are some ‘customer positioning tricks':
- Forecast of balloon future by other party to paint bright future. It can be dealt by
basing the decision on past history and calculating logically (Clopton, 1984).
- The other party says need to talk to final authority to finalize. It can be dealt with by
waiting till final authority is met.
- Other party brings unnecessary discussion other than the actual deal to support the
position. It can be dealt by asking straight that what such discussion means to the
deal.
Task 7: The paperwork

Keeping a good record is an important aspect in ensuring that the negotiation is a success.
There are three instances when the records can be maintained, namely, before, during, and
after the negotiation. Good records help in effectively managing the difficult negotiations and
convince other side by maintaining appreciable hold over the entire conversation (Owens and
Benners, 2001). Also, it is important that at the end of a negotiation, it is important to
accurately record what bother parties have agreed to ensure that the parties readily fulfil the
need of the other without missing on vital aspects. It also helps in assessing the deal after the
negotiation for better and proper consideration. Given is the debrief sheet that can be used for
my negotiation.
- Was the negotiation satisfactory? Why?
- Was the process satisfactory? Why?
- Was the organization of negotiation appropriate? Structure, logistics, and
management?
- Was communication good? Why?
- How was the success? Why?
- Any learning? What?

References
Bazerman, M.H., 2000. Negotiation. John Wiley & Sons, Ltd.
Clopton, S.W., 1984. Seller and buying firm factors affecting industrial buyers' negotiation
behavior and outcomes. Journal of Marketing Research, pp.39-53.
Klein, M., Faratin, P., Sayama, H. and Bar-Yam, Y., 2003. Negotiating complex
contracts. Group Decision and Negotiation, 12(2), pp.111-125.
Lewicki, R.J., Barry, B. and Saunders, D.M., 2011. Essentials of negotiation. Boston, MA:
McGraw-Hill/Irwin.
Owens, G.M. and Benners, T.A., 2001. Method and system of managing contract negotiation
records.
Stevens, C.M., 1978. Strategy and collective bargaining negotiation. Greenwood Publishing
Group.