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Effective use of negotiation skills in sales situations

Use negotiation skills for effective communication
Use negotiation skills for effective communication
Photo by Adam Berry/Getty Images

I will admit, I am a fan of the reality television shows that include the give and take of negotiation. However, I find that most of the people who are selling to the shows' principals are at a great disadvantage in the negotiation process.
The typical scenario involves a person walking in off of the street with something unusual that they want to sell. After a period of pleasantries and explaining the product, the host takes over the negotiation procedure. If the product sells, it is usually for far less than the original owner has valued it. The original owner is then presented in cameo with a comment or two about a fair price and then there is a cut to the shop owner who exudes the confidence of making a lot of money from the object.
There are several consistent tactics that the shop owners use that will get the negotiation headed in the direction that they want it to go in. First, they ask the object owner what they want in price for the item. Then, they make a face or a short comment of incredulity. They may ask for the logic or reason for asking for such a price. In a show of logic, they ask the object owner what they would really take for the object. Often, the owner names a figure substantially less than the original demand.
Once that happens, the negotiation is completely controlled by the shop owner. A couple of counter numbers are bandied about and then the object owner in one last try will sound the death knell to the negotiation by asking to split the difference between the two figures.
This is a mistaken move by most Americans who have either been told or seen others in negotiations attempt a fairness doctrine of one party being at say, $100 and the other at $200 and the attempt to meet in the middle at $150.
All in all, the shop owner, much more versed in negotiation skills almost always comes out on top.
An object owner can win the negotiation with a little research and practice.
First, the object owner should have a thorough knowledge of the market for the item and an unbiased view of the retail value and the wholesale value of the object.
The shop owner is always striving to get the object for less than wholesale value.
Therefore, a winning negotiation would end with the object owner getting a wholesale price plus a slight premium for costs of ownership.
If the object owner desires more for the object, then the owner should retail the product and bear the costs inherit in retailing.
The winning negotiation above is a win--win for both parties. Anything less and the object owner should walk away.
So the object owner should ignore the tactics of denigrating the object. Being told that it is old, shopworn, etc. should have no bearing if the object owner has realistically valued the object. The object owner should also have a realistic floor wholesale price that he or she will not go under.
While television values quick negotiations, the object owner should not cave in to pressure to sell today. Value will hold over time on most items. Walking away can assure that value will be held.
Consider you product, do your research and negotiate with confidence to get the value you know is there.

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