Negotiation is essential in every aspect of buying. The trading industry has lots of commodities with different people buying. Negotiation is the act or the need for a reduction in the price of the commodity in a market. Without negotiations, people could have been buying goods and services with high prices of up double the selling price of the merchandise as asserted by Busse and Silva-Risso (2010). Therefore, negation is crucial as it about a balancing nature in the trading system. However, some people do not participate actively in negation at the time of buying as they feel like the initial price to be affordable. Furthermore, most people always bargain with a given pricing quote in their mind. Therefore, if the price of the commodity after negotiation is higher that the fixed price in mind, the buyer will not buy the merchandise (Lumineau and Henderson, 2012). Therefore, most of the negotiations are within the level that is manageable by both the buyer and the seller as well. Moreover, bargaining in the form of negotiation helps both the parties to maximize profits at the expense of the other party. In the process of negotiation, therefore, one has to have a general understanding of the prices of the given commodities in the market. However, the prices of commodities beyond expected limits due to the existence of brokers who also needs extra cash from the sold commodity (Smeltzer, Manship , and Rossetti, 2013). Nevertheless, various aspects of negation are involved in convincing the other party and achieving the required commodity. As a buyer, it is essential to have an initial price of the goods and serviced to be purchased without actually buying so as to have a rough idea on pricing. In this regard, therefore, this paper intends to address the negation strategy that Michelle ought to use in the process of her negotiating for the prices of her desired model of vehicle as well as the plan which needs to be implemented in the course of dealing with the sellers in a market phenomenon.
In the process of negotiation, Michelle does not have to share much information with the buyer or the dealer. Moreover, he should not indulge with the seller in a discussion concerning the vehicle, nut rather she should use the information she has to access the quality of the vehicle that she intends to buy. If the vehicle is not of a standard like the one she needs, she should stay away from illustrating the disadvantages of the vehicle neither should she talk about the advantages part of the negation procedure. According to Busse and Silva-Risso (2010), placing vehicle trade-ins with the buyer may end up increasing the prices that the buyer has put in place. It is because the commodities will them be paid in installments after valuation of the vehicle. Therefore, it is true that telling the dealer that she has a trade-in will change the initial price. Michelle has no idea about the pricing value of the vehicle by the other dealer. It is essential and vital not to share with her Toyota vendor that she has another dealer as stated by Lumineau and Henderson (2012). The idea may make the seller increase the prices the next time she visits the place in such for other services. It is so true that Michelle will have to check out other prices from other sellers, but it is not essential to share with her Toyota buyer. The fact that Michelle knows the Manufacturers’ Suggested Retail Price (MSRP), she should not share with the dealer directly, but rather Michelle can negotiate along the same lines. The price at which she will buy the vehicle should be so close to the MSRP since she has an added advantage, not all buyers are familiar with the Manufacturers’ Suggested Retail Price (Busse and Silva-Risso, 2010). Since Michelle has a basic knowledge of the MSRP, it is necessary and essential to ensure that the use some deception which is ethically allowed if at all the buyer refuses to let the vehicle go at a price almost the same as the MSRP. The deception is geared toward getting the expected price or leaving the dealers premises without purchasing the vehicle.
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In coming up with a negation plan that values all the aspects of negation in the form of tactics, reservation prices and tradeoffs, Michelle needs to characterize some factors about the idea. Michelle needs to understand the kind of situation she is in as buying a vehicle uses entirely different tactics as when buying a bicycle. It ensures that her negotiation level or idea is within an expected range (Smeltzer, Manship , & Rossetti, 2013). Moreover, she should make sure that the negation approaches that she chooses in line with the seller expectation to avoid conflicts in the process of trading. Therefore, if the selection approach of negotiation does not lead to an agreement, it is vital to check with other dealers who might accept her offer.
From the above case study of Michelle in the process of her dealing with the Toyota dealers to negotiate the vehicle, it is evident that negation is meant to reach an agreement. In case the negation is not any evidence leading to an agreement, the parties should avoid the negotiations. Moreover, negotiating requires a well-built strategy to ensure that one receives the expected results in the form of maximizing the prices. Therefore, negation strategy and negotiation plan are useful in the process of buying and selling a commodity or a given service.
References
Buss, M. R., & Silva-Risso, J. M. (2010). " OnDiscriminatory Rent" or" Double Jeopardy": Multicomponent Negotiation for New Car Purchases. The American Economic Review, 100(2) , 470-474.
Lumineau, F., & Henderson, J. E. (2012). The influence of relational experience and contractual governance on the negotiation strategy in buyer–supplier disputes. Journal of Operations Management, 30(5) , 382-395.
Smeltzer, L. R., Manship, J. A., & Rossetti, C. L. (2013). An analysis of the integration of strategic sourcing and negotiation planning. Journal of Supply Chain Management, 39(3) , 16-25.
