Negotiation Exercise - Buyer

Your washing machine has broken down. When you called the repair company and told them the model number, they laughed. You have decided you need to buy a new one. It will be inconvenient if you dont buy one in the next few days.

A niece you havent seen or spoken to for 20 years has sent you an invitation to her wedding which will take place 300 miles away. You doubt whether she really expects you there but you feel like you have to buy her a wedding present. In fact, you need to buy the present today so that it can be sent to the wedding in time.

Walking past your local high street retailer of domestic appliances you notice the following items in the window:

• Washing machine 339.00
• Toaster 32.99
• Electric Kettle 27.65
• Microwave oven 42.30

All prices are inclusive of VAT.

You think that the washing machine looks suitable for you, and any of the other items might make a suitable present for your niece. You have 385 in your pocket that you could spend if you wanted to, and a credit card with a 3,500 limit available to you. Although it is getting close to closing time, you decide to drop in and make the two purchases that you need.

Exercise:

Your partner in this exercise takes the role of the shop assistant. Within the time available, negotiate for the purchases that you want, aiming for the best prices that you can get.

Deliverables:

Record any purchase on a slip of paper, stating the goods, the price and the method of payment. Ask the salesperson to initial as evidence.

Negotiation Exercise - Supplier

You are a shop assistant of a high street retailer of domestic appliances. It is 20 minutes before closing time and you need to leave on time as you need to pick up your 5 year old son from his after school club. Whilst waiting to close shop, you look at the calendar and notice that this is the last week before the reporting period ends. You realise that you need to average 395 in sales a day to meet your targets.

A potential customer has just walked into the shop after looking at the shop display in the window. You get the feeling that they are interested in buying something based on the time spent looking at the display. You approach the customer to help and to help meet your sales targets.

The items you notice that they are looking at are:

• Washing machine 339.00
• Toaster 32.99
• Electric Kettle 27.65
• Microwave oven 42.30

All prices are inclusive of VAT.

With the pressure to meet targets you remember the following:

• The cost to deliver & install items is 25, to deliver only is 10 per item
• Card payments incur a surcharge of 10 regardless of value of the final bill
• If you manage to sell insurance on any item you get a bonus of 5 per item regardless of the value. Insurance is 10% of the value of the listed price
• You may personally offer a discount of up to 10% off the listed price, waive the card payment surcharge and offer free delivery and installation
• You may call the store manager (Aaron) to authorise any further discounts

Exercise:

Your partner in this exercise takes the role of the customer. Within the time available, negotiate for the highest sales that you can as your targets depend on it.

Deliverables:

Record any purchase on a slip of paper, stating the goods, the price and the method of payment. Ask the customer to initial as evidence.