The instructor’s manual contains information for the buyer and seller.
Buyers and sellers must
each have their own set of information before they can plan for and conduct the negotiation.
Please copy this information and make it available to the students.
allow the buyer to
see the seller’s information and vice versa.
The students will decide how much information
they share during the negotiation.
A reasonable amount of time to allocate for this simulation is 30 minutes for individual planning
and 45-60 minutes for the actual negotiation.
This negotiation can be an individual or team
effort. The larger the negotiating team, the more time the participants may require to plan for
and carry out the negotiation.
tell the participants they must reach an agreement.
An inability to agree, also known as
, does not mean failure.
It simply means that the parties were unable to agree or
their personal positions on a negotiation had no common area of overlap.
A deadlock is often
better than reaching a bad agreement.
Before the negotiation begins, the instructor may ask the buyer and seller to list their goals from
Furthermore, ask the participants to identify the range over which they expect
to negotiate each major issue.
For example, the buyer will have a range over which he or she
would like to purchase the component.
The seller will also have a relevant range over which he
or she is willing to sell the component.
Developing a range is important for two reasons.
each party has developed a range for an issue (versus a fixed point), this increases the
probability that the buyer and seller will have an overlap in their positions and will reach an
Second, a range suggests a willingness to be flexible.
Flexibility is important to
When the authors of this text conduct purchase negotiation simulation, they collect the
prenegotiation data from the buyers and sellers and use this as a basis for analysis after the
negotiations are completed.
For example, if a buyer and seller fail to agree on the purchase of
the component, often the two parties had no overlap in their positions.
A post hoc review of
the negotiation is a perfect time to ask the participants what they expected from the
negotiation, who was flexible, what were the main issues, who opened with the first offer or
concession, why the parties did or did not reach an agreement, and so on.
that the buyer and seller consider before they commence negotiations provides a basis for
(Instructor - See the questions that each party must complete before
beginning the negotiation.
These questions appear at the end of the buyer and seller
Remember that a negotiation has no right or wrong answer.
A successful negotiation is one
where each party is eventually satisfied.
Parties negotiated based on their skill and personal