Bargaining Techniques

Which key negotiation term best describes the range between the two negotiation parties’ reservation prices?

The buyer’s reservation price is 500. The seller’s reservation price is 300. What is the bargaining surplus?

What is a synonym for the Walk-away Price?

Which of the following could be a BATNA?

Which term best describes the function of the list price (“sticker”) in automobile showrooms:

Which key negotiation term best describes your preferred outcome in a negotiation?

You are the seller in a negotiation. You suspect that the buyer is withholding important information from you that would justify a higher price. How can you get the information during the negotiation?

How do you determine your reservation price as a buyer for a piece of land?

When should you make the first offer in a negotiation?

You are looking to sell your grandmother's old sewing machine. It is a true rarity, however it is currently broken because of a minor flaw. The cost of repair is estimated at € 80. The machine was purchased at a price of DM 300, corresponding to approximately € 200 in today’s value. Additionally, you spent approximately € 100 for repairs in the past. You happen to know a merchant offering € 20 for your unrepaired machine. In order to speed up the sale, you also list the machine online on a specialized marketplace for sewing machines. The final price is determined by means of an auction, the seller is only required to set an initial price. On that website, you also find offers for comparable, properly functioning machines at the prices of € 140, € 160 and € 180.

What is the merchant’s reservation price derived from her BATNA? Which of the following statement is the most accurate? Only one option is correct.

Dennis Brösel works for SteelNord GmbH. The company is about to purchase a new production machine for casting molds to increase its production capacity. Dennis Brösel was commissioned to sell the old machine.

There is no second-hand market for this type of machine, as it is usually used until the end of its service life. It is therefore difficult to determine an appropriate value for the used machine. If the old machine were given in payment when the new one was purchased, SteelNord would be credited with €40,000.

But Dennis first wants to talk to Südstahl GmbH about selling the old machine. SteelNord has already made frequent deals with Südstahl and left a very positive impression. The negotiation process and the handling of the handover were always very uncomplicated.

Andre Castlehard works for Südstahl and is supposed to negotiate the possible purchase of the production machine from SteelNord GmbH. The request from SteelNord GmbH could not have come at a better time, because Südstahl temporarily needs a production machine of the same type that SteelNord is currently selling. In 2 years from now, Südstahl will switch to DIN 1602 and therefore will have to buy a completely new production machine. However, buying a DIN 1602 compatible machine right now is not desired. A used machine appears to be the ideal solution since a new machine could not be used until the end of its service life (due to the switch to DIN 1602 in 2 years).

A new machine would cost €800,000 and could probably be given in payment to the manufacturer for €100,000 when switching to DIN 1602 and purchasing a new machine. Alternatively, Südstahl could also rent a production machine. The cost for a rented machine is 0.75€ per piece produced. Südstahl plans to produce 1 million units until the switch to DIN 1602.

After Südstahl engineers have once again confirmed the technical compatibility of the SteelNord machine, Andre and Dennis meet to discuss the possible sale.

Which of the following statements accurately characterize Andre’s BATNA? Only one option is correct.

What are synonyms of the target price?

What are synonyms for the reservation price in the literature?

Which of the following can be referred to as an anchor:

What is a synonym for the ZOPA?

Which of the following could be a BATNA?

The buyer’s reservation price is 300. The seller’s reservation price is 500. What is the bargaining surplus?

How do you determine your reservation price as a buyer for a piece of land?

Your friend is about to enter a negotiation. She is well prepared and has a solid understanding of the other party’s BATNA. Your friend tells you that her goal is to claim as much of the ZOPA as possible. She asks you if she should make the first offer in the upcoming negotiation. What would be a good advice to give her?

Your friend is about to enter her first negotiation. She is startled by two conflicting pieces of advice she received. One person told her not to let the other party talk too much during the negotiation. Another person told her that she should listen more than she should speak. Based on what we discussed in the course, what would you recommend her?

You are looking to sell your grandmother's old sewing machine. It is a true rarity, however it is currently broken because of a minor flaw. The cost of repair is estimated at € 80. The machine was purchased at a price of DM 300, corresponding to approximately € 200 in today’s value. Additionally, you spent approximately € 100 for repairs in the past. You happen to know a merchant offering € 20 for your unrepaired machine. In order to speed up the sale, you also list the machine online on a specialized marketplace for sewing machines. The final price is determined by means of an auction, the seller is only required to set an initial price. On that website, you also find offers for comparable, working machines at the prices of € 140, € 160 and € 180.

What is the ZOPA derived from the buyer's and the seller's BATNAs? Which of the following statement is the most accurate? 

Dennis Brösel works for SteelNord GmbH. The company is about to purchase a new production machine for casting molds to increase its production capacity. Dennis Brösel was commissioned to sell the old machine.

There is no second-hand market for this type of machine, as it is usually used until the end of its service life. It is therefore difficult to determine an appropriate value for the used machine. If the old machine were given in payment when the new one was purchased, SteelNord would be credited with €40,000.

But Dennis first wants to talk to Südstahl GmbH about selling the old machine. SteelNord has already made frequent deals with Südstahl and left a very positive impression. The negotiation process and the handling of the handover were always very uncomplicated.

Andre Castlehard works for Südstahl and is supposed to negotiate the possible purchase of the production machine from SteelNord GmbH. The request from SteelNord GmbH could not have come at a better time, because Südstahl temporarily needs a production machine of the same type that SteelNord is currently selling. In 2 years from now, Südstahl will switch to DIN 1602 and therefore will have to buy a completely new production machine. However, buying a DIN 1602 compatible machine right now is not desired. A used machine appears to be the ideal solution since a new machine could not be used until the end of its service life (due to the switch to DIN 1602 in 2 years).

A new machine would cost €800,000 and could probably be given in payment to the manufacturer for €100,000 when switching to DIN 1602 and purchasing a new machine. Alternatively, Südstahl could also rent a production machine. The cost for a rented machine is 0.75€ per piece produced. Südstahl plans to produce 1 million units until the switch to DIN 1602.

After Südstahl engineers have once again confirmed the technical compatibility of the SteelNord machine, Andre and Dennis meet to discuss the possible sale.

Which of the following statements accurately characterize the ZOPA?

Which term best describes the function of the list price (“sticker”) in automobile showrooms:

What are synonyms of the bargaining surplus?

You and a classmate are arranging the next Zoom meeting to work on a project. Your friend has a virtual class until 4PM, you have an online Yoga lesson at 8PM. Which key negotiation term best describes the function of the range between 4PM and 8PM?

What are characteristics of the target price?

Which key negotiation term best describes the threshold at which you would leave the table?

Which key negotiation term best describes your preferred course of action when the negotiation fails?

You are the seller in a negotiation. You suspect that the buyer is withholding important information from you that would justify a higher price. How can you get the information during the negotiation?

When should you make the first offer in a negotiation?

How do you determine your reservation price as a buyer for a piece of land?

Dennis Brösel works for SteelNord GmbH. The company is about to purchase a new production machine for casting molds to increase its production capacity. Dennis Brösel was commissioned to sell the old machine.

There is no second-hand market for this type of machine, as it is usually used until the end of its service life. It is therefore difficult to determine an appropriate value for the used machine. If the old machine were given in payment when the new one was purchased, SteelNord would be credited with €40,000.

But Dennis first wants to talk to Südstahl GmbH about selling the old machine. SteelNord has already made frequent deals with Südstahl and left a very positive impression. The negotiation process and the handling of the handover were always very uncomplicated.

Andre Castlehard works for Südstahl and is supposed to negotiate the possible purchase of the production machine from SteelNord GmbH. The request from SteelNord GmbH could not have come at a better time, because Südstahl temporarily needs a production machine of the same type that SteelNord is currently selling. In 2 years from now, Südstahl will switch to DIN 1602 and therefore will have to buy a completely new production machine. However, buying a DIN 1602 compatible machine right now is not desired. A used machine appears to be the ideal solution since a new machine could not be used until the end of its service life (due to the switch to DIN 1602 in 2 years).

A new machine would cost €800,000 and could probably be given in payment to the manufacturer for €100,000 when switching to DIN 1602 and purchasing a new machine. Alternatively, Südstahl could also rent a production machine. The cost for a rented machine is 0.75€ per piece produced. Südstahl plans to produce 1 million units until the switch to DIN 1602.

After Südstahl engineers have once again confirmed the technical compatibility of the SteelNord machine, Andre and Dennis meet to discuss the possible sale.

What is Dennis' reservation price derived from his BATNA? Which of the following statement is the most accurate?

You are looking to sell your grandmother's old sewing machine. It is a true rarity, however it is currently broken because of a minor flaw. The cost of repair is estimated at € 80. The machine was purchased at a price of DM 300, which corresponds to € 200 in today’s value. Additionally, you spent approximately € 100 for repairs in the past. A second-hand merchant offers you € 20 for your unrepaired machine. In order to speed up the sale, you also list the machine online on a specialized marketplace for sewing machines. The final price is determined by means of an auction, the seller is only required to set an initial price. On that website, you also find offers for comparable, working machines at the prices of € 140, € 160 and € 180.

What is your reservation price? Which of the following statement is the most accurate? Only one option is correct.

What are synonyms of the bargaining surplus?

Which of the following can be referred to as an anchor:

What are synonyms of the target price?

What is the ZOPA?

What is a synonym for BATNA?

Which key negotiation term best describes the threshold at which you would leave the table?

Your friend is about to enter her first negotiation. She is startled by two conflicting pieces of advice she received. One person told her not to let the other party talk too much during the negotiation. Another person told her that she should listen more than she should speak. Based on what we discussed in the course, what would you recommend her?

1. Make sure that you dominate the conversation to sell your arguments in the negotiation.