Personal ask which is 20 euros. At that time,

Personal Journal

 

How to achieve our purpose
in complex situations while considering other interests is always difficult
problem for me. And this course gave me the inspiration about how to deal with
those situations.

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When we were doing the
first case which is about selling an old garden, I only had the information that
one buyer offered to pay 15 euros per square meter and I thought it was a fair
price. Then I tried to find out the lower price I can accept which is 17 euros
per square meter and the price I want to ask which is 20 euros. At that time, I
thought if I asked the price too high then the buyer would think it was ridiculous
and he or she cannot accept it for sure.

However, during the
simulated negotiation, when I asked the “buyer” how much she wanted to pay for
the garden, she offered 75 euros per square meter. It is a really surprising
price for me which is much higher than my expectation. I thought she must made
a huge mistake so I said “ok, deal” without any hesitation. And at last, I
found I could get the price much higher than 75 euros if I tried to negotiate
further with her and I am the one who made mistakes.

From this interesting case,
I have a preliminary understanding of the negotiation:

 

1.   
Get the information as much as possible and never
make decisions when you lack of effective information. In this case, if I knew
the market price about the garden or I had other buyers who offer other prices
for me, I could get much higher price. And moreover, as we talked in the class,
“Less argument, more question”, when you don’t have enough information, you
should ask questions first to gather more information that you want instead of
making a deal as I did.

2.   
Ask the price much higher than the price you expect.
I was too worried about that it would be unrealistic if I asked the price too
high during the negotiation which made me feel so regretful after I knew the
truth. Therefore, I think we should be brave to take an adventure when we are
negotiating with others especially when you have to offer the price first.

Although starting first is not a good idea because if you start to give
the price first, then you may let your opposite to know your limits. In this
case, I was lucky that I didn’t say the price first otherwise the result would
be worse for me. But if I have to take the chance to offer the price first next
time, I think I will offer the price higher than the fair price I want even it
is unrealistic.

3.   
Never accept the first price they offer to you.
This is the most important thing I learned from this negotiation.  When she offered me 75 euros per square meter,
I should know that she can offer higher price than this. But because the price
was much better than my expectation, I just accepted it without thinking about
it. So from this case, I learned that even the first price is much higher than
your wanted, you still need to negotiate further and in this way, the result
will be better.

 

    After
the experience of first case, I became more careful in the second negotiation.
But this one is also more complicated than the first one. In the second
negotiation, I was the Lyric Opera’s business manager who had a meeting with
Sally’s agent. Since I already knew some theories about how to negotiate, I
tried to find out the opposite’s limits and my own limits first. As far as I
know from the document, Sally is old now and she only has few offers recently
which are the weaknesses I can use. And then I started to focus on the
interests for both of us and according to those interests, I tried to make a
plan for us to get the win-win result.

The biggest difference
between the two cases is that the first case only has one single issue need to
figure out but the second one is more like multi-issues which is possible to
make an agreement to gain win-win. And I think the best solution in a
negotiation should always be win-win instead of taking all the benefits by
yourself.

And after negotiated with
the opposite, we made a deal which is Sally will perform in the show as a
leader with $27000 and we also considered the BATNA. If the performance will
get more than 86% audience then we will give her extra money about 0.25% of the
total price.

I thought it was a great
deal for me before I knew that Sally was willing to play the show even for
free. But I still think this was not bad solution because it is a long-term
relation for the Opera and Sally, they need to cooperate with each other after
this show and the happy ending will be helpful for them to keep their good
relationship.

When we finished the negotiation classes, I
was thinking about how to become a good negotiator. In my view, it won’t be
worked if we just learn some theories because the practical experience is more
important.

After learning the theories about the
negotiation, I felt more confident when I was doing the second negotiation. But
there were still many problems I cannot make sure. Because when we are
negotiating with others, it is very difficult to know exactly what she or he is
thinking about. I realized that the negotiations are more like psychological
games, we should try not
to get confused by your opposite. In order to avoid traps, we have to learn some
psychological strategies but it is not enough to only know the strategies
because we will never know what will happen during the negotiation.

As the Suspect game we did and the Split & Steal
video we watched in the class, the most important thing in the successful
negotiations is about gaining trust. That means if we want to get win-win
results, we should try to create joint values so that it will be easy for
both sides of the negotiation to make an agreement.

For me, negotiation is not
only happened in the business case but happen a lot in our daily life even when
you are dating with your boyfriend or girlfriend, negotiation skills are also
helpful.

As many people said, “Negotiation
is an art.” No matter in business or daily life, we still have many things to
lean from negotiations.