We all require the ability to negotiate, although few of us possess it. Maybe we’re afraid to try something new because we’re worried about being judged negatively. Most people avoid confrontation and are uncomfortable directly stating their desires. To put it simply, a negotiation is the process of resolving disagreements. It’s the act of settling differences without going to court. It’s unusual for everyone to be in complete agreement.
On the contrary, we may agree on absolutely nothing. As a result, we require an avenue for resolving these contradictions. Both sides want the best outcome they can obtain. Nothing to report there. Since this isn’t always doable, both parties must leave the negotiation feeling like they’ve won. Many individuals believe that discussions exclusively take place in formal settings such as the government, the courts, or large corporations. But the reality is that we’re all constantly feeling its effects. Everyone eventually fills out an application for a job, purchases a home, or invests in a vehicle.
Preparation is the key to success in every negotiation. This entails compiling relevant information and sharing it with all involved parties. There is no pre-sale communication between the buyer and seller of a car. The automobile lot is often the first point of contact. But now, thanks to the internet, the shopper may walk onto a lot knowing exactly what automobile she wants and how much she’s willing to spend. Before this, the customer could only have the car of his dreams—or at least his imagination. There were two things I did before heading to the parking garage. The initial step was to browse the company’s website for a suitable vehicle. At 70,000 miles, I found a BMW for only $17,000. Then I checked the Kelly Blue Book online to see how other comparable vehicles were priced. After entering the relevant data, the calculator returned a price range of $15,500 to $16,500.
At last, I turned to the internet in quest of car-buying advice. There was a gulf between the two groups. Don’t forget; we haven’t spoken to each other yet. Identifying a minimum acceptable conclusion or walkaway point is crucial to every negotiation. These tools can help remove bias. The Kelly Blue Book’s highest-end estimate of $16,500 was my breaking point.
Talking it over is the next step. In this phase, the disputing parties have the opportunity to provide their side of the story and clarify the circumstances. The secret is not to talk too much and not listen enough. You don’t want to give away too much information or fail to hear the opposing side’s arguments for fear of looking weak. Many find this challenging because it calls for self-control and attentiveness. This is the crux of the negotiation, where success or failure is decided. Since successful negotiations need both parties to put their pride aside, the ability to keep quiet and listen could be the single most valuable talent. The salesman’s pitch aimed to encourage me to buy a brand-new vehicle. It’s not shocking. This would increase his commission. He attempted to utilize the list price and payments as a justification. But since I had researched, I already knew which automobile I wanted and wasn’t about to change my mind.
At this stage, both parties need to make a list of their top priorities. Without them, it will be much more challenging to achieve success. If you won’t be able to go where you want to go, it’s okay to take a break. It could be as simple as lunch or as involved as scheduling a meeting for several days or weeks from now. You should avoid letting your feelings cloud your judgment at all costs. When you come back, it’s usually best to resume where you left off regarding agreements. In my case, the salesman and I both desired the same thing: to make a deal on a car purchase. He did attempt to sell me an alternative model, but that hurdle was swiftly jumped. So, I answered, “Sure, if you want to give it to me for my walkaway price.” We both laughed and continued. We can now see who has the upper hand in this situation. The availability of alternate paths gave me the upper hand. I could drive to another lot and buy it there. Sure, I could have just responded, “Let me think about it,” and moved on. According to salespeople, if you walk out of a store’s showroom, you’re probably never coming back. However, it would have required work on my part. Most customers at a vehicle dealership are intent on making a purchase. They don’t want to spend a week or more on the purchasing procedure. That was correct in my experience, and the vendor is aware of it.
We put the automobile through its paces. The salesperson now has the opportunity to steer the conversation. He has a chance to discuss the car’s features and advantages with the buyer. From experience, he knows that if the automobile is in good condition and the buyer gets behind the wheel, the chances of making a sale increase significantly. He pitched me on extras like extended warranties and fabric protectors. But because of my planning, I could maintain my lead and sidestep them.
The following step in the negotiation process is for both parties to consider how to come out on top. Both parties have realized they can’t have everything they desire now. Since this isn’t always doable, it’s essential to have a backup plan. Each party must feel that they’ve come out ahead. The price dropped to $16,500 after the discount. The first offer came from him. The advertised price of $17,000 is not a bargain. That was the first step. I understood the Kelly Blue Book range, so I believed he did as well, even though that was my “walk away” price. After all, he has lofty goals while I aim low. We both want the most excellent possible price. In response, I offered a range that started at $15,500.
There are two primary considerations here. You should never take the first deal that comes along. One side is seeking to establish themselves as the leaders by doing this. In the back of your mind, you’ll always wonder if you could have obtained more. The alternative is always to demand compensation for giving up something. Plan for a win-win outcome. Each side made concessions. The general rule of thumb is to order three times your estimated value. Although it may appear excessive, you can rest assured that you couldn’t have negotiated a better price. His first discount of $500 was multiplied by three to get us to the Kelly Blue Book’s minimum of $15,500.
The value you can get for trading in your old car is another issue of discussion in a transaction like this. Similar steps are taken. There was no way for me to negotiate this. My aging vehicle was being saved for scrap only. I decided it wasn’t worth dealing with anymore and accepted their offer. However, you should also know its Kelly Blue Book trade-in value. Finally, we settled on $16,000. On the surface, I won because I got the automobile I wanted at a discount and $1,000 in concessions. However, he was probably pleased to transfer stock with minimal effort. Thus the transaction was beneficial for both parties.
You can’t know your genuine market value without first engaging in some negotiation. When one party to the talks finally says “no,” the bargaining can begin. As was previously stated, rejection anxiety may be a significant roadblock in any negotiation. There is no rejection on our part. It’s just that your goals and theirs are fundamentally at odds. Consider negotiation a chance to find a workable solution to an issue. Whoever has the least to lose usually comes out on top. They are less sentimental and more willing to take chances to achieve their goals. If there is a vast gulf between the parties on this issue, finding a solution that works for everyone involved will be challenging. Always aim for the stars and ask for the moon.
In my negotiation, I refrained from doing so. It would be if I could go back in time and alter only one thing. Reason number one: I did believe I was getting what I asked for. I decided on a specific vehicle. I should have gone in with at least a few potential role models in mind. I didn’t even pretend like I was leaving while saying I needed time to reconsider. Maybe if I had, I would have been able to get a car with fewer kilometers and perhaps even some extra features. Like most people, I didn’t check the car’s sticker price. In my mind, the MSRP only applies to brand-new vehicles. If I had, I would have had more leverage in negotiations.
Lastly, I should have arranged financing before visiting the car lot. A solid negotiation position could have been established with a fixed-rate loan. The dealer gave me a terrible rate, so I refinanced. You may be forced to use the dealership’s financing services if you want the best bargain on a brand-new car. Get your financing in order before shopping for a used automobile. It’s a bargaining chip to help place you in the driver’s seat.
This was an excellent learning opportunity. The first is that it’s an art form that no one can master. I wasn’t up to par, but it wasn’t as nerve-wracking as anticipated. It shouldn’t be hard to start feeling better. Naturally, you’ll need a lot of experience before you can pull off one of those high-profile conversations. I realized both sides are looking for the best outcome they can get. They have no intent to exploit you. Starting with lofty goals is the surest approach to avoid this situation. There’s no denying the benefits of being the boss. Whoever initiates the negotiation has a significant edge. Surprisingly to me, I was able to follow through on my strategy. I was expecting to be persuaded away from my original plan. You need to go into it with a system. The goal of conflict resolution is not to have one party emerge victorious at the expense of the other. Each has a chance of success. Last but not least, this is an essential talent. At some point in our lives, we will have to negotiate.
Dave, my business partner, is an independent writer based in Orlando. Content marketing, company strategy, website copywriting, and raising brand recognition are all areas in which he excels. There is a white paper written by him entitled “The Transaction Tax: Has the IRS Finally Met Its Match?” that proposes a transaction tax to replace the income tax. Use [email protected] to contact him through email.
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