Page 65 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes It is important how we negotiate with each other. One must know the difference between
negotiating and begging. Do not stoop too low to get a deal closed. Negotiation must be in a
dignified way. One has to be extremely patient and also understand the second party’s needs and
interests as well. Never impose your ideas on anyone. Let everyone speak their mind and decide
something which would favor one and all.

Task Conduct a mock negotiation session in your class for a purchase of 100 units of
refrigerators.

The known techniques for negotiations are price analysis, persuasion, discussion, interrogation,
investigation, staging walk out, prolonged silence, weighing pros and cons, offensive strategy,
blow hot and cold, suggesting complicated formula and learning curve. A successful negotiator
has to possess the qualities of patience, persistence, persuasiveness, clear thinking, logical analysis,
optimism, knack of getting along with people, ability to plan and be thick skinned while
negotiating, the buyer should hope for the best and at the same time be prepared for the worst.
He should not adopt a strategy of hard choices and soft options. Care should however be taken
to adopt negotiations on a selective basis as the seller will easily identify the individuals or
Mr. five per cent or Mr. ten per cent and inflate the prices accordingly.
Let us go through some negotiation techniques in detail:
 The first and the foremost technique for an effective negotiation is one should be well
informed with everything related to the deal. Find out even the minutest detail you think
is important and you might require at the time of negotiation. Be prepared for everything.
Remember the second party might ask you anything.

Example: Janet wanted to purchase a new laptop. She checked out the prices of almost all
the leading brands along with their features before going to the outlet. She went well prepared
and thus managed to crack the best deal and took the best quality laptop with the maximum
possible discount.
 Take good care of your posture as well as your body movements: Look confident. While
speaking, don’t look around or play with things. It’s just a discussion, no one will kill you
if you are not able to close the deal.

!
Caution Don’t stammer in between or start sweating in front of others. The second party
will take undue advantage if they find you nervous.

Take care of your dressing as well. Don’t wear anything which is too casual. If you dress
casually people will not take you seriously.
 Be much focused: One should be very specific what he wants. First ask yourself what is the
purpose of this negotiation? What do you actually want? What is the affordable price for
you? Be firm and stick to it. Be very specific and clear.

 Never keep things to yourself and crib later: Don’t assume that the other person can read
your mind on his own. One needs to ask for what he wants. A mother will not feed her
child unless and until he cries. Speak your heart out. If you are not satisfied with the deal,
show your displeasure to others. Express them that you are not very happy with the price
and it needs to be revised.

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