Bargaining Techniques

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?

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

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.

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? Only one option is correct.

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

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

What is a synonym for BATNA?

What is a synonym for the ZOPA?

What are synonyms for the reservation price in the literature?

What are characteristics of the target price?

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?

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, 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? 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.

What is Dennis' reservation price derived from his BATNA? Which of the following statement is the most accurate? Only one option is correct.

What is a synonym for the Walk-away Price?

You tell your friend that you have an appointment at the local car dealership to buy a new car because yours just broke down. Your friend tells you: ‘You can always buy my car for €5,000 if you don’t like the dealership’s offer.’ Which key negotiation term best describes the function of your friend’s offer in your negotiation with the dealership?

What is the ZOPA?

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

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

The buyer’s reservation price is 1500. The seller’s reservation price is 1000. The settlement price is 1100. What is the bargaining surplus?

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?

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?

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.

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.

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

The buyer’s reservation price is 2000. The seller’s reservation price is 3500. The first offer is 2900. What is the bargaining surplus?

What are characteristics of the target price?

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 is the BATNA?

What are synonyms for the reservation price in the literature?

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?

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?

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? Only one option is correct.

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.

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

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

What is a synonym for the ZOPA?