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The Art of Negotiation

Why Planning a Negotiation Is Important

(Meina Liu, n.d.) Planning is a primary step in any business deal and negotiation is nothing else but a potential deal. So it is very important that if anyone wants to crack the deal than one has be fully prepared and plan it nicely with all required information. Negotiation is a process where more than one person is involved and it is done to reach to a consensus at one point to benefit all involved parties. In other worlds it is dialogue between parties to reach over one or more issues when a conflict exists. The first and most important step in successful negotiation is its proper planning and preparation. According to Thompson (2009), 80% of negotiator’s efforts.

The first, and often the most important step toward successful negotiation is planning and preparation. According to Thompson (2009), about 80% of negotiators' efforts should go toward the preparation stage. Negotiation will be successful and more inclined towards the parties who is more prepared and well informed amount the deal. (iMind Q, 2016), used the term effective planning i.e. to know what we want from the negotiation is to very clear. However, planning and preparation should go beyond what negotiator do before negotiation. Negotiator should be prepared to deal with any contingency which may popup during the negotiation process and discussion. And plan and preparation includes that both parties should gather maximum information before getting into the direct communication, their ability and intention if possible. They should be clear about their own expectation and demand. Charter of demand from both the parties should be clear and the main aim of negotiation must be center point and should be deviated during the process.

In this case the main point of negotiation is sale and buying of car, and it can be done by coming to a point where the prices of both seller and buyer matches. So, buyers aim will be to get It at the least price by preparation and getting the relevant information about the product and buyer’s need and previous offers received whereas the sales agent will get the information about the Mrs. Austin and her interest areas, her paying capacity and her budget to buy and expected price to finalize the deal

Parties Involved in This Negotiation Scenario

Here in this scenario there are two parties involved, one Mr. Solo, the Seller who is owner of 1927 custom-made Bentley convertible, an antique car, which is one its kind left. He has authorized the sales agent to negotiate in his behalf and Mrs. Austin who is interested to buy the car and has authorized his Secretary to negotiate the price.

Sales agent is myself, and I have used the negotiation tools learnt as I have been given a minimum price target which is above 200000 pounds, then only it will be treated as successful and I will get my commission. The field analysis, a tool is extremely effective in distinctive multiple parties among a negotiation and their relationship. My job in this arrangement is to sell the car at price where Mr Soles would have the option to sell his car for a sum that he accepts his Car is worth. He is happy to release this vehicle, as he has attempted to sell it throughout the previous three years, yet he won't let it go at any cost less than minimum he is expecting. I should know that as the business operator, I won't get any commission beneath the £20,0000 imprint, and Mr Soles dismissed a past proposal of £130,000.Mrs Austin has picked her own secretary as her delegate. She is in UK on a vacation, and has given, her secretary, full power to buy the vehicle for a price somewhere close to £230000. With this constraint and resources we started our negotiation, but groundwork done by both will subsequently decide the result.

I know that this deal will make my reputation as sales agent and open opportunities in the future. I have two weeks of time and Mr .Sole already have an offer in hand, so this very crucial negotiation. Mrs Austin’s personal secretary mentioned that Mrs Austin was buying the automobile as a tribute to her late husband, as he was a fanatical automobile fan. He claimed that her 2 sons can take good care of the car which is concerned of Mr. Sole. I came to know from the my field work that Mrs. Austin is very much interested to buy the Bentley, and would love the negotiation for a settlement at the primary meeting itself.

Resources: My resources are the information I have gathered about the car, its uniqueness, and valuation of the cars in the similar range and most importantly the intention of the buyer and paying capacity. I also came to know during the negotiation that Mrs Austin’s secretary has followed recent editions of Hemmings Motor News, i would like to be ready with counter arguments, and back up proposals because he surely quote the estimates of Hemmings Motors News to put the price down, But I am also ready with additional researched Hagerty Valuation Tool.

Constraints Before heading into the negotiation, it's vital to know what factors which will come back up throughout the negotiation that might inhibit myself to urge the deal that i need. On my behalf, temporal arrangement may be a constraint another constraint I have is the minimum price below which I cannot sell and time of 2 weeks.

Negotiation Strategy

From beginning, I was very positive in my approach, I choose the Distributive Strategy where I should gain and along with this strategy I used the tactics like Take-it-or-leave-it negotiation strategy, Inviting unreciprocated offers.

I was sure that Mrs. Austin’s Secretary also will be a tough negotiator. (Gibson, 2011) explained that we all negotiate in our life whether we are in business or not and important it how well we do it for that he suggested various strategies.

I started with negotiation tactic of Inviting unreciprocated offers from the beginning and asked other party to offer first, I listened his version completely without disturbing him about the profile of Mrs. Austin and what all she will do with Car but he said though they are here to buy the this car , this is not only option available to them. So he offered a price which was even lesser than what was quoted by BAT Enterprise that is £95,000. (Jonathan Hughes, 2020) said that before engaging with their counterparts—for instance, by identifying each side’s best alternative to a negotiated agreement (BATNA) or may by researching of other party’s interests.

After listening such a low price, I revealed him that Mr.Sole has much better offer than this from a corporate so why he will go for a lower price But I have not disclosed the exact offer of BAT Enterprises. But that also he raised the price only to £150,000, which though again was not close to my expected price but still was much better than Mr. Sole was getting from BAT Enterprise. From my negotiating of point of view also it was good jump in first disclosure itself.

At this price also, I have not shown any interested and have not quoted any price, because I wanted to push up him for his best quote, then I told that Mr. Sole has given him full authority to close the deal within a short period of time because if this deal doesn’t work than he might go for other offer and Mrs. Austin don’t have much time to decide, as BATNA was already there i.e alternative offer. So this worked very positively and He asked how much expectation of Mr. Sole. From that moment, I chose to use selective presentations to lure Mrs Austin’s secretary to a deal that would suit me best. He was interested to have an integrative negotiation, but I was looking for a greedy settlement figure i.e. distributive negotiation that would cement my reputation for future deals. However, I allowed him to speak, and reveal information which can ultimately help me .

I was aware that Mrs. Austin had emotional interest also, So I tried to encash this now by telling this type of car is no more available anywhere that is the reason no valuation is available so if Mrs. Austin becomes the owner of this, she will be only person holding such precious antique piece. Mrs Austin’s secretary realized that where from I was coming from, and the thigs started changing and negotiation inclined towards my demands and reached to a final agreement, it was ensured that car will be safely delivered to Texas for Mrs. Austin. and Mr Soles would have me again to help him negotiate his next sale, I disclosed my final offer as that though Mr. Sole is expecting £250000 but I can close the deal at £230,000 if the token amount is done today itself. So deal was closed at £230,000.

Reflection on The Art of Negotiation

I was very with by this negotiation, it was success story for me. I am filled with confidence, as I was not only able to get the prices as expected by Mr. Sole but also much better than that. It gave boost to my intention of making my career in the sales. And there was so much of learning happened during this negotiation process. I also decided that in my next simulation or process I will do some extra preparation and planning and will also negotiate on my Commission part also. So that if I am able to give extra benefit to my client , I can also get some incentive.

References for The Art of Negotiation

(n.d.). Retrieved from https://www.business.qld.gov.au: https://www.business.qld.gov.au/running-business/marketing-sales/managing-relationships/negotiating/strategies

Gibson, B. (2011, December). Retrieved from https://www.vistage.com/research-center/business-growth-strategy/six-successful-strategies-for-negotiation/

iMind Q. (2016, August ). Retrieved from https://www.imindq.com/blog/effective-steps-in-planning-a-negotiation

Jonathan Hughes, D. E. (2020, August). Retrieved from https://hbr.org/2020/07: https://hbr.org/2020/07/whats-your-negotiation-strategy

Meina Liu, S. C. (n.d.). Planning and Preparation for Effective Negotiation. Retrieved from https://ideas.repec.org/h/wsi/wschap/9789814556958_0001.html

Team Clarizen. (2018). Clarizen. Retrieved August 15, 2020, from https://www.clarizen.com/cost-management-plan/#:~:text=In%20simple%20words%2C%20a%20cost,to%20complete%20all%20project%20activities.&text=The%20cost%20management%20plan%20in,be%20planned%2C%20funded%20and%20controlled.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

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