Negotiation Experience: Lessons Learned from Selling Flat Screen TV - Essay Example

Negotiation Experience: Lessons Learned from Selling my Flat Screen TV Introduction In this repot I intend to discuss my experience in negotiation. Specifically, I like to focus on the details of my negotiation, and some key challenges and learning opportunities that I have gathered from this exercise. Through a thorough examination of my experience, I wish to further appreciate the importance of negotiation both in theory and in practice. As such, this report will be divided into two parts. The first part will provide a brief theoretical background on what negotiation is and what benefits it gives to people’s interpersonal skills. The second part will zero in on my negotiation experience—selling a flat screen television—by highlighting on both the results and what I could have done differently. Negotiation: A Brief Overview In an online report entitled The Art of Negotiation, negotiation is defined as a basic means of getting what one party wants from another party (Filipovich & Watercourse 1). It occurs when the two parties have conflicting and complementary interests. Principled negotiation, as posited in the same repot, involves the separation of people from the problem being tackled; the focusing on the two parties’ interests rather than each one’s position; the invention of options for mutual gain; and the use of objective criteria all throughout the activity (Filipovich & Watercourse 2). Separating people from the problem means using joint problem-solving techniques by establishing harmonious communication and being critical to each one’s emotions and perceptions on the topic of negotiation. Focusing on each party’s interests entails the drive to be objective. Inventing options for mutual gain means exploring other opportunities that could be tapped without veering too much from the goals set. Using objective criteria means having a legitimate standard that guides the negotiation process (usually backed up by credible information). Preparation is essential in negotiation as the party should not only decide on what issues to discuss during the negotiation, but the basic strategy that he will employ as well (accommodating, avoiding, competitive, or collaborative). My Negotiation Experience A. Negotiation Summary My experience in selling my flat screen television will be divided according to the three clients that I have made a deal with: my sophomore friend named Luis, members of the web community portal in my apartment, and users of craiglist.com. As a background, I decided to sell this item for I deemed it cheaper than selling a brand new one—thus, helping me attract a wide range of buyers. I bought it three years ago in the local best buy for $450. 1. My Sophomore Friend Named Luis I first approached my friend named Luis who is a sophomore and has just recently moved into an apartment. Understanding Luis’ situation at the moment has helped me assume that he might be interested in buying my tv (as he probably does not have any appliances yet). Thus, acquiring and analyzing the personal information of my potential client has guided me at this phase of the negotiation. During the preparation stage, I listed all the necessary information about my item—product model and features, selling price, mode of payment, and years of use. I memorized a few important details of the product to make the discussion spontaneous and convincing. Thus, my preparation has allowed me to identify my end goal as well as craft my selling strategy. During the actual talk, I found out that Luis already has a tv but might be interested in buying mine depending on the price. He specifically mentioned that he could only pay as much as $150. Taking into consideration the current market value of my tv, I decided to look for other potential clients. However, I opened the possibility of selling my tv to Luis at $150 if I do not get any other attractive deals. 2. Web Community Portal in my Apartment I made a second deal by posting my item in the web community portal in my apartment. I viewed this as a viable option due to convenience as I can easily meet my potential client and personally show him/her the tv. Taking in mind the demographical profile of the people who live in my apartment, I decided to price my item for $250. Thus, understanding the purchasing power of my potential clients has guided me in the determination of my selling price. A few days later I received a message from one of my neighbors in the apartment and he told me that he has willing to buy the tv for $200. During the actual meet-up I mentioned that the price that he offered was attractive, however, I could only give him the tv in April. After a few months I called back my potential to ask if he was still interested in buying the tv. Although he said yes, he stated that he would now buy it for $180. Considering the potential loss that I would get if I accept the deal, I chose not to sell the tv to him and moved on to other opportunity. 3. Craigslist.com I made a last deal by uploading the photo of my tv in craigslist.com. This time, I chose not to assign a price to the item to attract more offers and compare them more effectively. After a few days, I received an offer at $180 which I refused as well. B. Negotiation Result After weighing down the pros and cons of the three offers that I have received for the tv, I ended up selling the tv to my friend Luis at $180. Although the amount I got is lower than the two previous deals—at the web community portal I would have earned $200 had I sold the tv immediately while at Craigslist.com I would have gotten $180—I was thankful that I was able to sell the item to a friend that I know would take care of my tv. Key Lessons Learned from the Experience Based on my negotiating experience, I have come to two essential lessons: (1) negotiation begins with an end deal in mind; and (2) effective negotiation takes a look at the other party’s benefits. 1. Negotiation Begins with an End Deal in Mind This means that any form of negotiation needs ample preparation as it helps the negotiating party identify his end deal and the ways through which that could be attained. In my experience, I would have sold the tv at a much higher price if I had taken the time to understand the real market value of my second-hand tv vis-à-vis other second-hand tv’s in the market. This benchmarking activity would have helped me identify my final selling price range as supported by product data. 2. Looking at the Other Part’s Benefits Understanding the position of the other party is crucial in not only closing the negotiation, but in also creating a strategic partnership. Considering the perspective of the other party can definitely guide in the spotting of other options to make the deal attractive for both parties. Reference Filipovich, Karen & Watercourse, Montana. The Art of Negotiating. Oct. 2011. Web. 9 Apr. 2013. Read More