Negotiation Techniques

Negotiation Techniques

Introduction

Negotiation can be defined as the process that occurs when two or more parties, each of whom is seen as controlling some resource which the other desires, confer to reach an agreement on mutual exchange of the resources. This paper will review the functions of communication and person skills in negotiation and how they contribute to the detriment of the negotiations. This paper will also provide an example of how I participated in a negotiating situation and how I deal with them..

New car price negotiation scenario

Negotiating with a dealer to buy a new car can be time-consuming and frustrating at the best of times. Not everyone likes car sales men, no, I'm sorry let me take that back nobody likes car sales men (Medly, 1984). So, what should you do then? Don't worry. From my personal observation I observe that negotiating to buy a new car is not that difficult after all.

Before going to buy a car I find out the original price of the car when it first appeared on the market. I didn't use the sticker price as my gauge when negotiating a deal. A salesperson offered me a deal that's, say, $500 below the sticker price, and many consumers will conclude, often mistakenly, that they're getting a good deal. Unless the vehicle is in big demand and short supply, we can often get an even lower price by negotiating up from what the dealer paid for the vehicle. When I know the dealer's true cost, I estimated the profit margin it has to work with and can determine a reasonable target price with which to begin my negotiations.

Salespeople like to focus on a monthly-payment figure while negotiating a deal. Indeed, "How much were you thinking of paying each month?" might be one of the first questions to greet you when you meet a salesperson. I didn't take the bait. It's the first step down a slippery slope of being manipulated with numbers and overpaying for your vehicle (Krannich, 1990). I think that using the monthly payment as the focus, the salesperson can lump the new-vehicle price, trade-in value, and financing or leasing terms together, giving me too much latitude to give a "good price" in one area while making up for it in another. Instead, insist on negotiating one thing at a time. I settled on the vehicle's price first, then ...