Section 1: Review Exhibit 2-4 in the textbook According to the Persuasive Communications and Negotiation course, before a negotiation, the negotiator should make adequate preparations. These preparations include self-assessment, assessment of the other party and the situation assessment. First, the negotiator should complete self-assessment.
The negotiator should clearly understand what he want, what his target point and reservation point are, what his alternatives are, and analyses, which is the Best Alternative to Negotiate analysis (BATNA) (Thompson, 2012).Second, the other party should be sized up, which includes other parties’ essential information, their interest, position and BATNA. In addition, in order to get a better result from the following real negotiation and make sure our negotiation strategy, the negotiator should also consider the different situation that will possible happen by answering the questions in situation assessment. According Thompson (2012), the basic settlement of a negotiation is slicing the fixed pie.
Under this perception, both of the parties will try their best to touch their target point.Using the pie-slicing strategies, the negotiator could easy make full preparation of what he should in the first step and then, with the well-prepared resources, the negotiator could make the first offer which act as an anchor point and correlate at least . 85 with final outcome. Hold on, wait for the other party’s response, keep the target point in heart and plan concession.
In negotiation, some guidelines a negotiator should also live by: consistency, simplicity, effectiveness, justifiability, consensus, generality, and satisfaction.Beyond the fixed pie slicing, the negotiator could also expand the pie in order to get the win-win agreement. If the pie is expanded so much, then the negotiator might also get the ice cream, or a bonus on the top of his deal. Ask and gain what the counterparty want, present the package deals that benefit both of your two parties’ interests and priorities.
Structuring contingency contracts that capitalize on differences in negotiators’ beliefs, expectations and attitudes, and using pre- and postsettlement strategies. Never forget to claim resources.Section 2: Describe and explain the negotiating strategy Our current house owner, Mr. Hershiman announced few weeks ago that he will raise the house rent from $2300 to $2800 for the next year if we still want to live in his house. It is really a big price increase for us and we want to refuse him immediately.
However, before responding to him, we calmed down and made a self-assessment as following: First, if the rent is reasonable, we want to still live there because we have poured our full love into this house, buying furniture from far away IKEA in Brooklyn, assembling, decorating and so on.Second, our target point is to keep the current rent and get some extra discount, such as oil fee and electric fee will be paid by our owner. Third, the reservation point is $2600, because the price of real estate in NY will rise after several month according to some experts explain, his action is acceptable. Fourth, there are a few available houses near our campus that have the same good situation. One of them we could consider is in Franklin Square, an area with low security and far away from school, but the price is $2000 for the whole house without furniture.
It is our best and only alternative.We also know some information about Mr. Hershiman: First, He is a kind doctor who lives two blocks away from our house. Second, he asks us pay the rent once a month in cash. Third, It is not a good season to rent house; there are no new students now, so few people are waiting for a new house. Fourth, at the beginning of renting, he insisted he would not charge us for the water bill and other life expense.
Fifth, he planted some vegetables in the backyard before we moved in, but because they haven’t been taken care of for a long time, they caused the insect growth and some carbine ants and centipedes were around and in our house.It took us a long time and big cost to eliminate them. After these analyses, we decide to meet Mr. Hershiman, and talk about our decision. We presented the situation that few people are looking for houses and the price for us is too high.
We also mentioned that there was an alternative house we could choose, and the host of that house can provide us a better price. In addition, we explained that we didn’t make any problems for him this year when we live here. If he could provide the house for the current price, we will do the land scraping ourselves and we would not asking him to pay for the ants killing fee. Mr.
Hershiman refused by saying that he could pay for the ants but the lowest price he could accept is $2600.Section 3: Describe and analyze the behaviors We decided to give some concession instead of leaving him on the table because moving to a new house is really a lot of work for us. Considering that after we graduate from the university, most of us will leave America and go back to China, we think the beds, the decks, the cabinets, all the furniture we bought are useless for us which also can not sell as a second furniture with a beautiful price. We could leave them to Mr.
Hershiman .He could rent the separate rooms with furniture in a higher price. What’s more, because we can’t get interest payments when we deposited our money in the native banks. So, it makes no difference for us to pay now or each month. This time, we provide him with the package deal: furniture plus one year rent initially but still, in the current price. Mr.
Hershiman still thought the price was too low. We then decided to try to come up with an Even Split concession, divided the difference (Thompson, 2012). We raised $150 from $2300 to $2450, and he lowered $150 from $2600 to $2450. Mr. Hershiman agreed this time.For him, the furniture is not useless.
He can earn more than the price he got from us from the next guest or sell them in second hand market. The whole total house rent also brings him a big income that he can use for some other investments. Mr. Hershiman will pay for the next year’s water fee and the ants killing fee in return.
Finally, we reach an agreement. Section 4:Evaluate the outcome of the negotiation It seems like a win-win agreement cause both of us get what we want from the negotiation. We expanded the pie with the second hand furniture provided.We kept the rent at an acceptable price and we can use the water for free for whole year.
Although, Mr. Hershiman didn’t get the higher rent price, he got the furniture to use for a long time and a great deal of money. Section 5: Discuss the mistake we made Looking back this negotiation we made, the biggest mistake we made was caring too much about this house, because we thought it was troublesome to move. We even didn’t think about it, just made a phone call to the alternative house owner got the price of that house.
Actually, we didn’t have an alternative.Realizing the fee we would have had to pay to move, all of us wanted the current house even the price was high. In my opinion, we made too much concession. The hindsight is that we presented too much what we think to Mr.
Hershiman. We should try our best to figure out our alternative instead of putting all of our heart in the current house. In addition, in order to expand the pie, we should have provided the counterparty what they really need, but it seems difficult for us, who have less bargaining power than the counterparty. In conclusion, I think we will do better if we can focus on what we should do and act more wisely.