Business negotiations also referred to as bargaining is the activity that involves two people or more, generally face to face, with different interests who make an arrangement to put an end to their differences and reach an agreement that creates a relationship between them (Chapman, Miles, & Maurer, 2017). My decision to the purchase of an item is attributed to the nature of people having to bargain on the price of a good especially when it is second hand. In the negotiation situation, I was seeking to buy a television from a friend for a lower price. My friend was looking to get a larger television, and I needed a television. I did not want to pay full price for a new one. My friend was looking to sell his television for three hundred dollars, and I wanted to talk him down for a lower price.
Before visiting my friend, I took a look at how much the television he had was currently worth. Most objects depreciate over time. My friend was asking for what he had paid for the television. However, my friend owned this television for over a year. I used different online sites to determine the current value of the television people were paying two hundred to two hundred and fifty dollars to the television. I only had two hundred dollars for the television. The television was used but still in good condition. My friend only wanted the new television because it was bigger, on sale, and had more “smart” features. There was nothing wrong with the television I wanted, but it was worthless. I set my personal goal of getting the television for the price it was worth it.
I had to plan out what to say to my friend. I needed to convince him that parting with the television for my current offer was the best decision. He could get his new television faster and not worrying about storing his old one. He would also have money in hand to help him buy the new television. I needed to present the argument in a problem and solution manner. This was not a negotiation that needed emotion or beliefs. A loss of emotional control can lead to an unfavorable outcome in negotiations (Chapman, Miles, & Maurer, 2017).
My negotiation with my friend began with me asking what he wanted for the television and would he take a lower price. I did not begin by offering the two hundred dollars. The first step to good negotiation is never put your final offer up first. Furthermore, it’s good to let the other person make the first offer. Once he answered the price he was asking, I countered with a lower offer. After my friend had told me he did not want to get rid of the television for a lower price, it was time to name the benefits of allowing me to take the television at a lower price. My friend did present some counterarguments to the benefits I was naming. He said that it was better to get back what he paid in full for his television. If he got the full amount, he would not be behind in money. I countered that he might not get another offer for his old television. He would be stuck with two televisions and may have to take an even lower price for the television to be rid of it. This gave my friend something to ponder as our negotiations continued.
I listed other benefits of letting me have the television including that I would help him get rid of this old television faster. If he were in a hurry to get the new one, he would not have to worry about what to do with the old television. I made these counterarguments with the offer that I would help move the negotiation along. I offered to take the television and pay him on the same day. Additionally, I made the offer to help him install his new television. This started to sway my friend towards my offer. I also used the tactic asking about his new television. The more he talked about the benefits of the new television, the more eager he was to buy it. After supporting his opinion of the new television, my friend started to see my point of view. He did not want to run the risk of missing out on the television on sale. He finally agreed to let me have the television for two hundred dollars. He also accepted my help with the television installation. I felt the negotiation was successful.
I was satisfied with the results of the negotiation. My friend may have been disappointed with the lower amount, but he was able to get his new television. He also did not have to worry about getting rid of his old television. I may have tried to negotiate the price more, but I was fixed on getting the price for two hundred dollars. I may have been able to receive a lower price, but my friend was difficult to negotiate with. I was surprised that he was willing to take the lower price. I felt like I could control the continuous back and forth the negotiation. The arguing went back and forth for a long time. I felt like the amount of time could have been shorter. I did not have much time between learning that my friend was getting a new television until the day of negotiation. However, not all negotiations happen with long-term planning. I need to learn more patience in my negotiations. Lastly, we were able to reach an agreement, and I purchased the television for the price that I wanted.
My skills as a negotiator have improved since the beginning of this semester. I used to take whatever offer I was given. I now know that I can negotiate for a better outcome in different circumstances. I can use the skills I have learned this semester in different life situations. Almost every day I encounter situations that I can use my negotiation skills. This will help in maintaining these skills. If I do not use the skills I have learned, I will lose them. I think the ability to negotiate is a crucial life skill. I plan to maintain it by using negotiation wherever possible in my life.
Chapman, E., Miles, E. W., & Maurer, T. (2017). A proposed model for active negotiation skill development. The Journal of Management Development, 36(7), 940-958.
Week 3 Lecture – Special Projects in Business Conflict Managemen