Tuesday, December 16, 2008

negotiating and anchoring

Today we spoke about bargaining. How sometimes (as in the Bazar in Jerusalem) those selling start from a very high asking price and might make buyers feel great about the 50% (or even 90%) discount they are getting even though they are paying way too much. Anchoring... you start the negotations from an anchor and the other party measures his progress against it. Of course this technique can also be used by the buyers "you want 1000 shekels for that scarf? I'll give you 10...".

I told them your best friend when negotiating is information. If you know how much the seller paid for the item, you know what a reasonable price for it would be... And of course, if you know how much the buyer or sellers needs the deal, you know how much you can bargain...

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