Shopping 
4
comments

Precise offers and the art of haggling

Specific offers might make haggling easierNegotiating prices is an important skill to have, and not just for those times when you visit countries where haggling over small purchases is common practice.

While most day-to-day purchases aren’t negotiable in this country in the same way they are in Latin America and Asia, most of the really significant ones are. In many cases, skillful haggling can knock thousands of dollars off the price of a car and tens of thousands off the price of a house, which can have long-lasting effects on your finances. And when you’re sitting down for an interview with a potential employer and talking salary, you’re really negotiating arguably the most important price out there: the price of your labor and, ultimately, your time.
(Click to continue reading…)


 Shopping 
4
comments

Understanding BATNA

BATNA is a well known negotiation acronym that stands for “best alternative to the negotiated agreement.”

If you’re familiar with the concept of opportunity cost, then BATNA will sound very familiar. The idea behind opportunity cost is that the price of something isn’t just the number listed on the tag. There’s an opportunity cost involved and that cost is the price of the next best alternative. Let’s say you have two potential events you can attend this weekend. You can either go to a movie or go to a concert. The opportunity cost of going to the movie is the enjoyment you would’ve experienced if you went to the concert instead. The opportunity cost of going to the concert is the enjoyment you would’ve experienced if you went to the movie instead. So the cost of the movie is not only the ticket but concert enjoyment. Got it?

BATNA is a similar idea. When you’re negotiating anything, it’s important to know the other side’s BATNA. You’re trying to create a win win situation, so you have to create wins for the other side. If you know their next best offer is worth $10, you can offer a $9 solution. They would simply say no and go to their BATNA. You want to know how much their next offer is worth and offer something better.

(Click to continue reading…)


Advertising Disclosure: Bargaineering may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
About | Contact Me | Privacy Policy/Your California Privacy Rights | Terms of Use | Press
Copyright © 2014 by www.Bargaineering.com. All rights reserved.