Negotiation is the process of discussing the issues with different perceptions between two parties to reach the mutual agreement. Negotiation happens in the daily life of Human Being. It may be hard to believe but most of the time, People sometimes negotiate about what to eat, where to go, what to do and so on. Negotiation is a very sensitive skill where many people can lack it, but it is possible that anyone can be a skilled negotiator. It requires planning to become a competent negotiator. Firstly, you must know what your mission and other’s party mission as well. You must search for the places of agreement. You must know how to be negotiated, look for substitutes solution. And at last, have the agreement and close if negotiation is successful. According to Wroe Alderson 1957, who is marketing theorists define negotiation as the growing process of selling effort ( ….). It has shown to attempt that seller who is better negotiator tend to do better deals than others. The idea of this thesis is to provide a personal experience event of how you negotiate with someone that happens in your life. Also, it will help how to be a good negotiator by providing information and addressing issues.
Talking about real-life negotiation situations from my experience, I used to work at Malashree Motors Pvt. Ltd in Nepal. My position was as a salesperson. Negotiation plays a vital role in my job role and is unavoidable because I must deal with the customer daily to do my job. It is necessary to understand working as a salesperson, negotiation does not always happen while selling the product. Especially, here we are talking about negotiation and define the experiences and situation from your life event, so I am focusing on Negotiation. Malashree Motors is operated by TVS and this company sells bikes, auto-rickshaw and many more. TVS is an Indian company operating in Nepal also. My role was to sell bikes to the customer. For me, Salesperson was quite challenging because you have pressure to do your job properly by selling more bikes and attracting many buyers as possible. Everyone wants to buy things which have better quality and affordable price. In my sales experience, when someone wants to buy bikes, they would always ask for prices and after their features. In Nepal, now also many people prefer actual information from people rather than doing online research. That is why being a seller you should have all the information for customer’s questions.
Let’s dig into the now negotiation part. If you are a seller, it is obvious you want to sell at higher prices and if you are a buyer, you want to buy at lower prices as possible. In my past practices in selling, many buyers come with mind makeup and they know what they want. But there would be some customers who were in a dilemma to buy bikes from which brand. As a salesperson, I always used to talk about bike features, their warranty and servicing bike. When doing sales, with your brand it is better to do a comparison with another brand. My very fresh event I remember while selling the bike was when there was a mega sale program conducted by TVS that happen in Chitwan, Nepal. During that time, the company would launch a new version of bikes with new models. It used to be very busy. People used to come to our stall to know about new brand bikes. It was our opportunity to grab many consumers as much as possible. So, the result of this program was good for both parties.
Talking about my position as a salesperson, my responsibility was to define about features of bikes in the showroom. When the purchaser comes to the store, the first thing is to greet them. Being in my role, I should provide good customer service. As being buyers, they are keener to know about the price of the product. I believe when doing sales business, negotiation works better when you are doing the comparison with other products. Therefore, I should have knowledge about other company brands. For instance, when the buyer was not satisfied with our price, we used to provide them a better discount from the actual price than another bikes company. We also used to give bike servicing charge free for 6 months while other brands used to give just 4 months. In addition, Customer satisfaction is a very important part of doing business negotiation. If you are polite, providing better customer care, they will be happy. If they are happy, our business is happy. While negotiating with a buyer, you should be able to deal with different types of people and know your role.
The important point to become a better negotiator is do not negotiate without having your research on the market, bike products and many more. Because buyers before coming to the market to buy, they may have done some online research and search price value for the bike. So, you cannot fool the buyer by providing a false report. Always try to be consistent and real. If you are doing better business or dealing with the customer and if they are happy, with this behaviour you can attract other many customers in your store. Before doing dealing, the pre-negotiation planning process can outcome positive results. As per Peterson and Lucas 20001, for the buyer-seller negotiation, there should be four stages pre-negotiation outline. They are Insight gathering, definition, procedure development, and preparation. Before the negotiation, collection data, handling, examining and assessing accessible information related to the other party and related natural factors. After that defining and analyzing what is your goal and objectives and arranging the parameters for each issue to be arranged. Then, planning strategy development and at last preparing including verbal correspondence, masterminding or making materials and taking care of strategic concerns. (3…..)
I want to describe the event of one customer which was very challenging for me. It was a really good experience. My day was going well. During my work time, one customer came to our store. I approached him and introduce myself. Then, he told me that he wanted to buy a bike but was not sure which one. He seems very confused. I asked him which type of bike are you after. He describes me and I show him a bike that he said. I describe the motorcycle model, its features, advantages, services and many things. He was still unsure. I asked him what his budget was to buy a bike. As mentioned before, a buyer wants to buy things at less price and that is okay because he or she is just trying to save some money. Our showroom sells news bike only, so the price of the bike is fixed and applicable. I could not help him to fix the rate for the bike and what I can do is give a discount rate and other services that can benefit and help him to save money. I offered him a bike under his budget. He wanted to have test rides. He was excited finally. After the test ride, I again remind him of the price of the bike. Now, he started to negotiate with me. There was a target set for me to sell these 100 motorcycles each month and once I achieved that I will be rewarded. Thus, I was giving my full effort to this guy to buy the bike. I was really open to my negotiation because I had a target to follow. He told me that he wanted that bike, but the price was not reasonable. So, I again remind him of the advantage of the bike and describe him it is worth it what he is getting for the money and adds the benefits of the warranty, full servicing for 6 months and anything that emphasize the value of the bike. I told him I want to help you, but I just cannot lower the price for you and not for others. It is already fixed according to the market price. Sometimes, building urgency to the buyer saying that there are so many other interested parties and this bike model is so popular that it is going to be occasional even though it may be not accurate. If there will be a fault in your engine, we will look after it and provide five years warranty. That means if some problems detect, servicing is done with free of costs.
Followed by this, to be a good seller you should have patience and be a good listener because all these efforts we are doing are to satisfy customers. That’s why I was giving him time to talk and discuss things that he was not satisfied with. In the process of negotiation, we have two styles, i.e., distributive bargaining style and integrative bargaining style (4..). The Integrative bargaining style means it analyses both underlying problems and objectives that are vital to both parties whereas the distributive bargaining style is to exchange the information or resources between two parties with no understanding to reach mutual goals. I think the integrative approach is suitable for our company because if the buyer is happy with our services, it has a high chance the buyer wants to deal in the future. It is not possible to reach the end of the agreement right after. Therefore, it might take time and it is your time to agree with customers by providing enough knowledge. At the time, there are many customers who always bargain about value. So, it is necessary to know to negotiate with the buyer about the value and quality of your company. After some discussion, he was finally agreed and our negotiation end on a mutually agreeable situation and everyone was in a good position. It was a win-win challenge because he was satisfied with our service and product and I had sold our bike and done my duty. The deal closed and both parties end on a satisfactory conclusion to negotiation. After our deal, I knew he visited our store just to check and compare our bikes brands. He already had a plan of buying another bike brand. But because we had a good offer and deals, he was happier to go with our plan. This explains that having the right skills and strategy, a salesperson can change negotiations to the path they wish to take.
The tactics of the company by giving a target for the staff to sell their product within a given period was a good initiative. So, we were giving our full efforts and working hard. Every time, your topmost priority should be to know the client’s demands and needs. You should be able to demonstrate customer satisfaction with your products, services, skills and financially. To become a good negotiator, you need to have better selling skills. Also, you need to determine where do you want to be and determine your goals clearly.
Negotiators can be either succeed or fail. It is all about the skills and tactics that define ways of fulfilling the objective. I think the more you negotiated, the more you become better and learn more. Having the right mindset will help to become comfortable to follow the process. At the beginning of my job, I used to get nervous all the time. It was my first job. To eradicate the nervousness and fear, there is no way and no magic to becoming better on the First day. It will take times and after you will be working more, you will get through it. Talking about my good point, I have always worked hard and used my selling and negotiation skills to sell company products. I used to have knowledge about the current market price and how they are competing in the market. As information is power during negotiation, you should always be prepared to have information that other party does not have, having information other party does not have to make you prior while negotiating.
It is now clear that negotiation is the most important tool for everyone doing business for the development and activities to foster its ideas and knowledge. Selling and negotiation are the key components for the seller to help them to develop their business. People who are good negotiators can help them to adjust well to their new work, are good at balancing family-work relations and can be promoted quicker. ( 5…). Our company used to always provide us training when a new product is launched so in that way we are updated with new information. It is all about proper planning, having clear objectives and be prepared when doing the negotiation. Being a negotiator, you should be ready to gain other party beliefs and maintain a long-term relationship. Always ready to ask the question if confused. Also, look out for the other party concepts and clarify issues if any and work for the solution. As stated before, listening during negotiation will help to have an idea what other party is discussing so in that way you will have knowledge about what they want and where they come from.
In conclusion, from our early years, we are always doing negotiation to manipulate our family, friends, and others to get what we wanted. It is necessary for every field. You must be prepared and be ready to grab all the information that is needed before negotiation It is important to be specific about the purpose of the negotiation and must be clear. It is possible that your plan might not work so already be ready with an alternative idea. In the business field, you should try to be honest with another party. Do not try to manipulate with false information. Always have a positive mindset and be confident with the second party. You should attempt to discover the ideas and interests of another party as well. Try not to settle on something which would not be possible for the second party.