Preparation

Negotiation is a discussion between two or more people that is aimed at reaching a particular agreement. People negotiate to ensure their interests are considered in that the decision or rather the outcome of the discussion will be favorable on their part. However, negotiation does not just happen from nowhere. People need to have a thorough preparation to ensure they have adequate knowledge of the product or services that need to be purchased. In the case, before heading to the Ferrari negotiation, I will have to do the following adequately

I will search up for the Ferrari on the internet where I intend to get adequate knowledge on the speed manual transmission if the spare parts are readily available as well as the rpm.

I will look up the current market value for the Ferrari focusing more on the features such as speed, engine condition, cylinder, and even color. Having thorough information makes it easy to get extra details that are vital during the negotiation.

The fact that communication is vital during negotiation, I will research on the effective language to use. This will be weighed upon positive and negative hence come up with the best decision that will help me get the vehicle at an affordable price.

Another preparation is that after I get all the possible information I had researched, I will talk it over with a friend to seek for an opinion regarding the cost, how low I can go as well as the factors I will base on.

I will finalize my preparation by making a negotiation memo which will include intangible analysis of the car, the range of price I will stick to given the fact that if things get too high, I will have to add 1/3 of the bonus money.

Important events during the negotiation

Getting a Ferrari for the price I want can imply a tough negotiation. However, I am aware of the negotiation rule that goes, “the first person who speaks loses.” This implies that I have to be as wise as I can get the Ferrari at the very price I can afford. The seller puts an open offer on the table for the Ferrari as it is a tone that guides the rest of the negotiation. The Ferrari is yellow and unique, and the paint is very original, a fact that makes the price a bit higher than others. However, when the seller sets the price, I consider it higher and beyond my budget and so I protest, “TheFerrari is cool but am abit worried, it’s high above my budget.” I further argue on the fact that looking at the current market value price for a Ferrari it seems the seller is a bit higher. He accepts this fact but again talks of the unique color, the original paint, and so much. I stand my point, I cannot get the car for the set price. He groans, complains and does all the playacting and seeing my stance he asks for what I had. I say $ 16000. I knew if he could he object to this price he could settle to a 19 or 20, the money I had, so winning the bid. He complains of how this is too low, and he makes a counteroffer of $ 26,000, a price close to the $ 28,600 market value of the Ferrari.  This was a sign that the deal was getting good. However, I wasn’t ready to pay this amount yet. Communication is vital in negotiation, more specific the non-verbal form. When he tells the counter price, I shake my head to show that the price was still high and beyond my budget. I further make a move as if walking away. He calls me back and tells me that we were still talking andthere was no need to rush things. This showed that he was bowing to pressure, a powerful influence that motivates bargainers. He asks of the last amount I can give, and I still stick on the same price. He objects and asks for addition or how high I could go. From the look of things, I could lose the deal, and so I go as high as $ 18,000, and he asks for an additional $ 4,000 to make it $22,000. I reject the price and offer him $20,000, and we call it a day. He looks at me for a moment and shakes my hand in agreement though complaining how unfair I was.

Reasons for my final position

For one, $ 20,000 was the amount within my set budget.

Furthermore, the price was much lower than the actual price on the market.

Lessons from the simulation

I have learned that simulation creates an essential focus by developing advantageous mutual solutions where both parties gain benefits. In other words, simulation creates an opportunity for a meaningful problem-solving dialogue that leads to practical outcomes. For instance, through a positive dialogue or communication, strategic partnerships are developed where common interests that focus on long term relationships are created. Using a positive language during simulation makes things easy in a way that both parties can come to an agreement without crossing shoulders.

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