First Negotiation.
Used Car Deal.
In this session of class, we did our very first negotiations. It was a change from what I am normally used to in discussion type classes.
Before I started the actual negotiating, I had to fill out a quick prep sheet to figure out my interests in the negotiation and to estimate what the other party would be hoping to get out of the deal. After this was done, my partner and I headed outside of the room to conduct the actual negotiation. In this negotiation, I played the role of a person who wanted to sell their old Ford car to help payoff the car note on his new chrysler. My partner played the role of a potential customer for the car. I planned to be as friendly as possible, yet steadfast in my selling prices. I felt that this was the best route to go since hostility and anger turn people away from you and ruins future relationships.
I started with a tactic based on a principle that i had learned from a psychology class. The door-in-the-face technique involves initially asking someone to do something unreasonable then ask a them to do a little bit less. The smaller request seems much more reasonable in comparison to the first, thus the person is more willing to comply. I started the initial selling price of the car at $9,500 knowing that i wouldn't get it, but it succeeded in making my next offer of $7,500 seem more reasonable. My partner seemed very friendly and didn't throw a tantrum when i offered my prices, so i tried to use this to my advantage. After a bit of haggling my partner and I worked out a deal. I agreed to drop the price to about $6,800 if he would take the car as is, no repairs or anything. He agreed and that was the end of our negotiation. We proceeded back to class to fill out our debriefing sheet and to have discussions on various negotiations.
I felt my high balling tactic in this negotiation really helped me to gain the advantage in the negotiation. However, I felt that there are areas in my negotiating skills that need improvements. One thing that caused me to give up some money was that I let myself think that this customer was the only potential sale. My partner did the opposite; he stated that he had several other offers so if mine didnt suit him, he would go somewhere else. I felt that i should have asked more questions about his situation to see why he wanted to by my car so badly even though he had "countless" other offers. But i felt that i played on my strengths, my kindness, and it helped me to get a good deal out of this.
For the next negotiation, i plan to use incentives and other tactics to help my partner gain interest in what i have to offer them. I will once again utilize my kind spirit to help obtain a good relationship and easier negotiations.
In this session of class, we did our very first negotiations. It was a change from what I am normally used to in discussion type classes.
Before I started the actual negotiating, I had to fill out a quick prep sheet to figure out my interests in the negotiation and to estimate what the other party would be hoping to get out of the deal. After this was done, my partner and I headed outside of the room to conduct the actual negotiation. In this negotiation, I played the role of a person who wanted to sell their old Ford car to help payoff the car note on his new chrysler. My partner played the role of a potential customer for the car. I planned to be as friendly as possible, yet steadfast in my selling prices. I felt that this was the best route to go since hostility and anger turn people away from you and ruins future relationships.
I started with a tactic based on a principle that i had learned from a psychology class. The door-in-the-face technique involves initially asking someone to do something unreasonable then ask a them to do a little bit less. The smaller request seems much more reasonable in comparison to the first, thus the person is more willing to comply. I started the initial selling price of the car at $9,500 knowing that i wouldn't get it, but it succeeded in making my next offer of $7,500 seem more reasonable. My partner seemed very friendly and didn't throw a tantrum when i offered my prices, so i tried to use this to my advantage. After a bit of haggling my partner and I worked out a deal. I agreed to drop the price to about $6,800 if he would take the car as is, no repairs or anything. He agreed and that was the end of our negotiation. We proceeded back to class to fill out our debriefing sheet and to have discussions on various negotiations.
I felt my high balling tactic in this negotiation really helped me to gain the advantage in the negotiation. However, I felt that there are areas in my negotiating skills that need improvements. One thing that caused me to give up some money was that I let myself think that this customer was the only potential sale. My partner did the opposite; he stated that he had several other offers so if mine didnt suit him, he would go somewhere else. I felt that i should have asked more questions about his situation to see why he wanted to by my car so badly even though he had "countless" other offers. But i felt that i played on my strengths, my kindness, and it helped me to get a good deal out of this.
For the next negotiation, i plan to use incentives and other tactics to help my partner gain interest in what i have to offer them. I will once again utilize my kind spirit to help obtain a good relationship and easier negotiations.