Buyer-Seller Negotiations: Strategy and Process

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Table of Contents

Introduction
Process Analysis
Conclusion
Works Cited

Introduction

Negotiation entails a dialogue that involves two or more parties, which have a common goal or interest. In this case, the common goal or interest that bound the buyer (me) and the seller (Sam) was the need. While Sam wanted to dispose of his Lexus GS 400, 2005 car, I wanted to buy it through an exchange with my BMW 540i 2002 and additional payment. Since negotiation exists in different forms and styles, our style of negotiation involved distributive style. Distributive style transpired since Sam and I were involved in a negotiation that centered on a certain range of payment between $1,500 and $500. The style employed was accommodating since no one wanted to hurt the other in the process of negotiation. Facial expressions and tonal variations were some of the factors that facilitated our accommodating style of principled negotiation. Hence, it is within this background that the essay examines the process of negotiation involving the purchase of Sams car.

Process Analysis

Goals, Planning, and Preparation

The intention that commenced our interaction and an ultimate negotiation with Sam was the need to buy a car, through an exchange with my BMW 540i. Lewicki, Barry, and Saunders assert that negotiations require parties that have a common interest, which binds them together (23). Since Sam wanted to dispose of his Lexus GS 400, which was clean and in good condition, and I wanted to sell my car, a common interest bound us together. As a result, I decided to instigate the negotiation with the main objective or goal of disposing of my car to him with an additional payment. The goal behind my intention to negotiate with Sam was to purchase his car and trade it with my car after giving him an additional payment of around $500. Therefore, according to my plan of action, I expected to receive Sams Lexus GS 400 after making a submission of my BMW 540i and an additional payment of about $500 to Sam.

After identification of the common interest between Sam and me, I contacted him and informed him of my intention to exchange my BMW 540i with his Lexus GS 400 and offer an additional payment. Consequently, after contacting Sam, he agreed and chose a place where we would meet and negotiate. With the negotiating skills acquired in class, I understood the significance of employing distributive negotiation that incorporates win-lose outcomes. Additionally, I knew that for a successful negotiation between Sam and me to occur, I had to apply an accommodating style of negotiation that is principled and does not result in disagreements and dissatisfaction with both parties. According to Lewicki, Barry, and Saunders, effective type of negotiation that involves new parties is distributive as it limits the range within which they price their products (578). As a result, I prepared myself well for a successful negotiation with Sam and the achievement of set goals and objectives.

Although I knew that my BMW 540i was a bit old as opposed to Sams Lexus GS 400, I equipped myself with the confidence required so that he would not infer any weakness in my vehicle. Confidence and knowledge of the car were among the factors that I employed in an attempt to ensure that the negotiation process would be successful. Confidence and knowledge of the subject involved in the negotiation are very crucial factors as they facilitate the passage of correct information to the other parties involved. In addition, the factors help the negotiators highlight the strengths and weaknesses of the subject of negotiation. Lewicki, Barry, and Saunders explain that negotiators require confidence and knowledge of the negotiation subject so that they can present their demands and interests successfully (546). Therefore, with the knowledge of my BMW 540i and confidence, I was prepared to meet Sam and successfully persuade him to trade my BMW 540i with an additional payment of about $500 in exchange with his Lexus GS 400.

Outline of the Strategy

The employed outline of the strategy encompassed the distributive type of negotiation, accommodating style, and soft negotiation process. Through the application of the strategy, I would be in a position to persuade Sam and make him exchange his Lexus GS 400 with my BMW 540i and an additional payment of around $500, and thus, achieve my objective. Although I understood the challenges that centered on negotiations, I knew that with good persuasion and negotiation skills acquired during the lectures, the achievement of my goal, which entailed an exchange of my BMW 540i with Sams Lexus GS 400 together with an additional payment of about $500, was achievable. Successful negotiations result in outcomes that satisfy the parties involved (Lewicki, Barry, and Saunders 78). The employment of a good negotiation outline and strategy, my goal would be easy to achieve, while ensuring that Sam and I walked away satisfied with the outcomes.

To achieve the intended goal and trade Sams Lexus GS 400 at a fair price after an exchange with my BMW 540i, I had to set an outline that incorporated an opening offer and my intended target. Moreover, I equipped myself with the skills concerning the best alternative to a negotiation agreement (BATNA) that would be practical in instances of unachieved agreement in a negotiation process. Lewicki, Barry, and Saunders state that BATNA is very effective in scenarios where negotiators fail to reach an agreement concerning the prices of products that they intend to sell or purchase (56). In essence, the main aim of the opening offer was to set the pace of the negotiation and inform the other party, Sam, of my price range. The opening offer also facilitated the course of the negotiation since the other party, Sam, made his decision to continue or terminate the negotiation after the knowledge of my opening offer.

Negotiation Process

After a consensus with Sam concerning the day of our meeting and negotiation, and my successful preparation for the day, we met with him after work. Our meeting point was on the northern side of the city, which is adjacent to his workstation. Since Sam knew the terms of our negotiation, it was easy to initiate the process. Fundamentally, for the parties to negotiate well, they need to have correct information concerning the subject of negotiation prior to the process (Lewicki, Barry, and Saunders 28). During our meeting, I informed Sam of my initial intention to trade my BMW 540i with his Lexus GS 400 and offer an additional payment of $500. On his side, Sam argued that he expected an exchange of his Lexus GS 400 and an additional payment of $1,500 because his car was in good condition. According to Sam, my BMW 540i required painting and thorough cleaning on the floor because it had Dogs hair.

Sam also highlighted that his car was very clean and had new tires, and thus, it was worth more than my car, together with an additional $500. Another argument that Sam raised was the amount he presumed that he would spend when changing engine oil and cleaning of the Dogs hair that was on the floor of my BMW 540i. Sam also argued that a summation of the cost that he would likely incur in changing the engine oil, cleaning, and painting the car would be around $150. According to Lewicki, Barry, and Saunders, the negotiation process entails arguments that concern the quality of the product and its presumed price (17). However, I informed Sam that my car is economical because the rate of fuel consumption is very low, and thus, it would save him a lot on fuel consumption. In addition, I argued that I would spend some amount of money replacing the radio in his Lexus that went on and off frequently. After negotiating for some time, we came to a consensus with Sam, who agreed to trade his Lexus GS 400 with my BMW 540i and an additional payment of $750. The agreement was satisfactory, and each of the parties walked away, happy, and satisfied.

Analysis of the Process, Tactics Employed, and Use of Power

From the negotiation process, it is evident that I followed my plan of action and successfully convinced Sam to trade his Lexus GS 400 with my BMW 540i together and an additional payment of $750. While my initial offer of $500 was not accepted, it was instrumental in setting the course of our negotiation, which culminated in an agreement to pay $750. Substantially, my initial opening offer of $500 worked as it enabled us to settle at a much closer figure that exceeded my target by around $250. According to Lewicki, Barry, and Saunders, a successful negotiation process concludes when both parties come to a common agreement, which is satisfactory (38). My goal of trading my car with Sams Lexus GS 400 succeeded since we came to a consensus and agreed to trade our cars. Although Sam was a bit challenging and hard to convince, the skills acquired during the lectures facilitated by negotiation and occasioned positive and successful outcomes.

The tactics employed in the process of negotiation comprised a distributive type of negotiation, accommodating style, and a principled negotiation process. Distributive style of negotiation was instrumental in fixing the range within which the involved parties in the negotiation would focus on while accommodating style facilitated an understanding and fair treatment of the parties. Lewicki, Barry, and Saunders elucidate that accommodating individuals ensure that they do not hurt others during and after the negotiation process but achieve their objectives satisfactorily (130). The principled negotiation process was practical as it enabled a fair consensus that satisfied the parties involved in the process. The use of power was evident in several instances of the negotiation process. Involved parties demonstrated the power of knowledge and expertise on the subjects of negotiation, as each pointed out the strengths and weaknesses of the subjects. Additionally, the confidence of the negotiators demonstrated power in character. While the floor of my BMW 540i was not clean, I demonstrated some level of confidence and explained the positive side of the vehicle to Sam.

Conclusion

Negotiation is a process that entails two or more parties bound together by a common interest. Essentially, negotiations require prior knowledge of the subjects and terms of negotiations. My experience with Sam during the trading of my BMW 540i and his Lexus GS 400 proved the significance of factors like confidence and knowledge on the subject of negotiation. Throughout the process, Sam majored in the strengths of his vehicle and the weaknesses of my BMW 540i in an attempt to diminish the value of my car. Conversely, since I had negotiation skills, I countered his arguments by pointing out some weaknesses in his Lexus and highlighting the strengths in my BMW 540i. In the absence of the negotiation skills, Sam would trade his Lexus GS 400 with my BMW 540i at a higher payment than the $750, which later became our accord. Ultimately, the process culminated in a consensus that Sam would trade the car with my BMW 540i at an additional payment of $750, an element that was satisfactory to Sam and me, and thus, a successful negotiation process.

Reflective Analysis

Some of the important lessons learned from the experience comprise the persistence of individuals during a negotiation process. Moreover, I learned that it is significant to respect the values, beliefs, and perspectives of other parties during negotiation so that the process becomes successful. Self-confidence, assertiveness, and good knowledge of the subject of negotiation are instrumental in a negotiation process, while the absence of these factors can lead to failure or unsuccessful negotiation. Factors like assertiveness, self-confidence, and knowledge of the negotiation subject are some of the factors that I observed and realized that they are momentous during my experience in the negotiation process. Proficient application of these factors played an integral role in convincing Sam to yield to my suggestions and trade my car with his car at a minimal price. Therefore, I learned various issues that concern the external environment and the practical part of the negotiation.

Some of my strengths include the knowledge that I had about my BMW 540i. The knowledge that I had about the vehicle was a useful strength since it facilitated my negotiation with Sam, who had argued that the car was not clean and worth the amount that I proposed. The strength that I helped me to counter the argument raised by Sam is the economic aspect of my car. Owing to the skills acquired during the lectures, I was able to employ the strengths that the vehicle had and use them overrule the arguments raised by the other party; hence, a successful negotiation. On the contrary, my reluctance to change the car seats and wash the floor regularly proved to be a weakness. As a result, Sam was quick to point out and identify since the floor had traces of Dogs hair. The weakness became a major center of the argument that Sam centered on during the negotiation process.

The concepts of negotiations, such as the types, styles, and methods, were significant in the achievement of my goals in the negotiation process. My ability to persuade Sam to trade his Lexus GS 400 with my BMW 540i and offer an additional $750 was achievable since I had acquired negotiation skills from the lectures. Moreover, the confidence demonstrated throughout the process of negotiation was an outcome of the skills that I learned. Among the main factors that a negotiator requires for successful persuasion is confidence since it assures the other parties of the knowledge concerning the subject of negotiation. By employing a distributive type of negotiation, accommodating style, and using principled negotiation process, I was able to convince Sam and achieve my desired objective.

Works Cited

Lewicki, Roy, Bruce Barry, and David Saunders. Negotiation. New York: McGraw-Hill Higher Education, 2010, Print.

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