Negotiation and Presentation
[Name of the Writer]
[Name of the Institution]
Negotiation and Presentation
Buying a New Car
I am an employee at Intesa Sanpaolo S.P.A., New York, and I earn $60,000 annually. I have a 2008 Acura TL FWD that I am planning to sell because my wife and kid want me to buy a new 2015 Ford Fusion Energi SE that costs almost $17,000. I cannot afford this much money so I have planned to buy it in installments. I will visit the showroom of motors next month. Vroom Headquarters at 1375 Broadway, New York offers a variety of new luxury cars. I have made my mind to buy a car from them on installments. The reason I chose Vroom Headquarters for the deal is their prestigious repute among the national and international car dealers. And the reason for buying it in installments is that it would be easier for me to pay like this instead of a one-time payment that can be a burden on my pocket. I learned a few days ago that they Vroom Headquarters will announce some easier packages of installments in the wake of New Year, so I would try my best to exploit this opportunity.
Dynamics of Negotiation
The dynamics of negotiation are not fixed for making a deal rather they look like subjective choices, but one thing is important that every kind of dynamics is envisioned to convince the opposite party on the deal (Wanis, John. 2006). The following dynamics are useful to make a deal of a new car, and I would use these dynamics to make my deal.
Information on Phone Call
Direct visits without a prior call might fail our deal even before it starts. It is better to learn about the company atmosphere and their way of dealing with a buyer staying away from the company. A phone call or chat is a better option for this cause. Therefore, I will contact the dealer(s) by a phone call and would present myself as a potential buyer and a person who has enough information about car dealers and their packages. I will mention their advertisement that they recently published offering cars at cheap rates and easy installments. I will book an appointment before I visit their office.
Relying on a distant deal is not fully secure. The dealer does not give consideration to a buyer who is trying to finalize a borrowing deal staying away (Palmer, R. N., Wernick, W. J., MacEwan, A., & Woods. 1999). That is why I would personally visit the office and would present my case in clear words. I would show my credentials and office records to prove that I have enough capability and resources to pay the price of a new car. Moreover, I would mention my call and would demand details about their offers. They advertised that they offer 6 monthly installments only; I would attempt to convince them on 12 installments at least.
No dealer rather any person can be convinced if he/she thinks that only he is losing something. A bargaining bite helps the negotiator to create interest in a deal. I would offer my 2008 Acura TL FWD as a bargaining bite, it is worth $9,000. It would satisfy them that the customer is already paying more than half of the price of the new car.
Calm Dealing with Logical Arguments
Losing temper or behaving frustrated cannot make a successful negotiator. I would negotiate in a calm way and would convince them that this will be a win-win deal for both parties.
A negotiator must know the psyche of the opponent and she/he should use specific tactics to convince the opponent on the discussion table. I would use the following tactics to convince the dealer.
Knowledge of Market Trends
I will show my knowledge of market trends by quoting some advertisements of some other dealers and praising one or two of them including Vroom Headquarters. I will surely use true information because I know that they are aware of every trend in the market. This will make them alarmed that I have more options than them.
Offering Extra Money with My Old Car
I will use the tactic of alluring them with more money. I would tell them that I would pay a 10% down payment apart from my used car. It will convince them that I am not illegible for having a new car because I can afford it.
Fortunately, Intesa Sanpaolo S.P.A. (where I do the job) is a major lender of Vroom dealers. I am a loan manager at the central branch of the bank. I would use my designation introduction to make them aware that I am a person of use and influence. Additionally, I would have interpersonal communication with the dealer to make them satisfied.
BATNA and WATNA for this scenario
Best Alternative to a Negotiated Agreement is required when the other party is still in pursuance of bargaining some more. I would invest my words for this purpose in the first place. I would explain that they are not at a loss rather profit because I would pay more than 65% price before I get the car. Moreover, they will get a 3% interest rate if they lend me the car for 12 months. After this, I would offer them to increase the interest rate by 1% because I know that the other dealers like Imperial Motors and America Motors do not lend cars on less than 6% interest rate. This is the specialty of Vroom Headquarters. My offer of 1% extra would amuse the dealer and it will attract him/her.
Worst Alternative to a Negotiated Agreement is required when the deal is almost broken (Zlotkin, G., & Rosenschein, J. 1990). I have a WATNA plan that I would apply. I would inform them that Imperial Motors has offered me a new car in the exchange of the used car, so I would exploit this offer. Furthermore, I would say that I preferred your company because we have an inter-organizational relationship, but I do not care about it anymore if you do not agree on this. I surely will buy a new car, but I will not recommend your company to anyone in the future for buying a car. Apart from that, they cannot expect any legal or illegal cooperation from me if they ever ask for some extra favor in the bank. In simple words, I would say that either they accept my deal or reject it, I have nothing more to offer nor would I. I also note that I do not expect any such situation.
Plan for Conflict/Dispute Resolution
Dispute or conflict in a negotiation must be resolved if the negotiator is convinced that the dispute was over professional conflict (of interest). If such a dispute occurs, I have a plan to handle it. I would either postpone our meeting or would ask for the fresh recollection of the key arguments. I have planned that I would take my deal in written form that would have spaces for minor changes. I would present my written deal and would ask them to reconsider it. Sometimes, it happens that the conflict occurs due to a specific person who is involved in the negotiation. In that case, I would ask the company authorities to allow me to make a deal with a different person. Some conflicts are so funny that a deadlock occurs among parties on petty issues like one or two percent of the interest rate. I would not behave stubbornly since it is I who needs the deal done as soon as possible (Wade, J. 2001). I have a plan to postpone the meeting for a few days if a deadlock occurs. This strategy will give time to both parties to reconsider the deal with a fresh mind.
Plan for Closing the Sale
After presenting a written proposal for the deal and comprehensive argumentation on the deal, I would ask them to conclude the agreement. I would clarify that I am in favor of an agreement that favors both parties. I will ask for closing arguments. In those arguments, I will give a summary of my proposal. That summary will briefly highlight the benefits of the deal for the company. Moreover, I would acknowledge in my arguments that I also would have a benefit of time that I would have to pay the price in installments (Wirtz, B. W. 2011). But I will not forget to quote it again that if I get the benefit of time, the other party would get the benefit of extra money (interest rate). I would introduce them a few loan packages that my bank will be going to offer in near future, and I would give a hint about how I would be a helpful person in the staff if Vroom Headquarters or any employee of the company approach the bank to borrow an amount on possible easy installments (Andrade, F., Novais, P., Carneiro, D., Zeleznikow, & Neves, J. 2009). My closing arguments would be followed by gratitude to the Vroom staff and the company's contributions to the national economy by producing and exporting the best quality cars. Finally, I would ask the head negotiator from the opposite party to give a closing statement so we would sign the deal formally.
Andrade, F., Novais, P., Carneiro, D., Zeleznikow, J., & Neves, J. (2009, November). Using BATNAs and WATNAs in online dispute resolution. In JSAI International Symposium on Artificial Intelligence (pp. 5-18). Springer, Berlin, Heidelberg.
Wade, J. (2001). Systematic Risk Analysis for Negotiators and Litigators: How to Help Clients Make Better Decisions. Bond L. Rev., 13, i.
Wirtz, B. W. (2011). Business model management. Gabler.
Zlotkin, G., & Rosenschein, J. S. (1990, July). Negotiation and conflict resolution in non-cooperative domains. In AAAI (pp. 100-105).
Palmer, R. N., Werick, W. J., MacEwan, A., & Woods, A. W. (1999). Modeling water resources opportunities, challenges, and trade-offs: The use of shared vision modeling for negotiation and conflict resolution. In WRPMD'99: Preparing for the 21st Century (pp. 1-13).
Wanis‐St. John, A. (2006). Back‐channel negotiation: International bargaining in the shadows. Negotiation Journal, 22(2), 119-144.
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