Thursday, October 6, 2011

Negative Negotiating

When my partner and I received the negotiating activity we did not do a lot of counter offering and quickly settled on an okay price per unit for my company - GTechnica (which turned out to be a more significant price per unit for him - AccelMedia). I feel that if either of us were more driven or had an incentive, we may have accomplished our negotiating easier and more effectively. Or maybe we would have been so involved that we would not have been able to reach and agreement for the sale. Either way I know that I would have had a better outcome in my negotiating for GTechnica had I read the article Secrets of Power Negotiating (http://www.amazon.com/Secrets-Power-Negotiating-Roger-Dawson/dp/1564144984) beforehand.

The first mistake that I made with my negotiation was starting with a low demand. Now, thanks to the reading, I know that asking for more than you expect heightens the value of your offer. Also, this gives a higher, more broad ZOPA for the negotiation. Another bad idea on my part of the negotiating was sharing my break even price with my partner. Additionally, I did not even ask him what his maximum sales price per unit would be. I hindsight, simply put, I wish I would have done less talking about my side of the "one shot deal" and more questioning him on his side. Finally, I have already decided that the next time I am in a negotiating situation I will be employing the various tips from Dawson's Secrets of Power Negotiating article to see just how good of a deal I can achieve.
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5 comments:

  1. SavannaOctober 8, 2011 at 4:46 PM

    I made the same mistake as you. I told my partner what my break even point was way before he shared his. In fact he did not share his willingly it was really a mistake that he let it slip which allowed me to get the price lower. I also wish I had read the Negotiating article beforehand so that I would have had some tips going in.

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  2. K. CookOctober 9, 2011 at 6:00 PM

    I read article before the negotiation with our partner and I still made a couple mistakes. I should have asked for a lower price when I first started. I still got good price but I still think I could get a lower price.

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  3. Karli.WagnerOctober 9, 2011 at 6:20 PM

    My partner shared her highest/lowest point with me. It made it easy for me then to set a price that was good for me. However it also made me conscious of not exceeding her high point because she shared it with me. I think it was extremely helpful to read the articles before hand, although my partner wasn't really into it so i didn't get to use my new found knowledge fully.

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  4. MaggiOctober 9, 2011 at 8:13 PM

    My partner must have really taken it to heart to start at an extreme price! I think we all learned a log with that activity, but I think it's better that you managed to make the deal where both parties benefited!

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  5. lindsayOctober 10, 2011 at 8:59 AM

    My partner and I also seemed to come to a quick negotiation without much countering. We also discussed our highest and lowest we would be willing to go and that also really helped pinpoint exactly where we could meet in the middle and come to a negotiation where we would be benefit and feel as though we made good decisions.

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