Key learning point: To be an ethical negotiator by providing correct information to the client.
Why selected: In order to gain a client’s trust, providing truthful information about the product to the client is important. However, when the negotiator perceives that the client has superior expectations of the product, then the negotiator would more likely use ambiguous tactics to win the client.
Application to a business or personal situation: Once a representative from a big company came to negotiate for 1, 000 computers, expecting a lower price than other competitors coupled with the expectation for a 10 years warranty on the product. Being in a tough competitive market, it was impossible to provide the client with such low price as these were new hardware products from the market. Therefore, as a negotiator I had to satisfy the customer as well as to maintain the profit level of the company.
Action steps: Based on the above situation, I had to do the following to be an ethical negotiator:
1. First, in order to understand what the representative wanted, I had to take notes and list down his requests.
2. Then, I took a few minutes to decide and write down what I should do in order to be an ethical and at the same time, to make money for my company.
3. Next, I told the representative that I could not lessen the price but that my company would provide 5 years warranty and 3 free software’s.
4. When the client agreed, I typed it out and asked the client to sign the deal and proceed with the other required documents.