Real World Negotiation 2: Negotiated for Japanese Mug
Essay by Austin Chao • July 22, 2018 • Coursework • 378 Words (2 Pages) • 758 Views
Real World Negotiation 2: Negotiated for Japanese Mug
Background Info: I travelled to Little Tokyo to visit a friend who just moved to Downtown LA. We decided to grab some Udon noodles in Little Tokyo and while we were waiting for an open table we visited a Japanese souvenir store that was nearby. I found a mug that had a famous Japanese painting of a wave on it, and I wanted to buy it. Because it was a small family run store, I tried to negotiate the price.
Preparation/Negotiation: I compared the price of the mug, $20, with the prices of comparable ones around it. The prices of mugs around it were $15, but I didn’t want them as much as I wanted this one. I also found a small chip on the mug’s lip, which I thought I could utilize to reduce the mug’s price.
I brought up this to the store clerk, who I thought was also the owner of the store. I told her that there is a chip on the side of the mug, and that I also thought that this mug is overpriced. She took it quite negatively because she said that it was slightly larger than the other mugs, and that its of higher quality. Though she did concede that there was a chip on the side of the mug and gave me a $3 discount. The restaurant texted me that our table was ready, and my friends were getting uncomfortable because the negotiation was drawing in attention in public. I thought this was enough a deal for me and I purchased the original $20 mug for $17.
Integration of Class Material:
BATNA: $15, the comparable mugs around it
Aspiration Price: $12, the price of the comparable mugs minus the chip
Reservation Price: $18, the price of the mug minus the chip
Type of Negotiation: This was a distributive type agreement
Result of Negotiation: I purchased the originally $20 mug for $17.
Key Lessons Learned:
- Don’t bring impatient friends with you to a negotiation. They will want to avoid public conflict and pressure you to take the price as is. If you go in for a negotiation in public, all members of your party need to be prepared to negotiate the price in public.
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