Two different scenarios are given below as an example:

Scenario 1

You are a landlord meeting a prospective tenant for your studio apartment in Paris. The flat is very small and at the top of 4 flights od stairs (there is no lift). It has a living room/kitchen and one bedroom, plus a tiny shower room and toilet. You have been trying to get 600,- for this flat of 20 m2, but now you are prepared to reduce that to 500,- if a reliable tenant presents themselves. The electricity boil is very low as the flat is well-insulated, so be prepared to include the costs of electricity in the rent if required in the negotiation. The buyer tries to negotiate 450. He can agree to 500,- if the electricity is included.

Scenario 2

Buyer: You are trying to buy a leather jacket from a street trader in a foreign country. You really like the jacket, which is a good fit, well made and stylish. But you think the trader is asking too much. Can you negotiate an acceptable price for both of you? You have a maximum of 80. You also have your credit cards. You also know that generally goods are half as costly in this country compared to your country. Decide what you want to pay and the tactics you will employ making concessions. A similar jacket in your country will cost about 130.

Assignment: Negotiation

1. You have to create your own scenario.

2. Analyze the dynamics of the negotiation process that you think will give you the best opportunity to succeed.

3. Determine the specific tactics you will use to effectively implement your plan.

4. Determine the Best Alternative to a Negotiated Agreement (BATNA) and the Worst Alternative to a Negotiated Agreement (WATNA) for this scenario.

6. Please states how you will close the sale that is fair to both parties involved in the negotiation.