In the day to day negotiations, one needs special skills and strategies in order to get the best commodity in the market at the right price. For example, when one need to buy a TV set there are several things one has to consider. First, there is an offer from the seller and one considers how good the offer is by assessing the commodity. If the commodity is not of the desired quality one can walk away and go to the next seller, if the commodity is of high quality the buyer can start negotiation by looking at the target points of negotiation like the warranty period, model, year of manufacturer and the size.
The negotiator should try as much to win the seller by making clear his target points so that he can get the best price. When carrying out negotiations, one has to consider the availabilities of the alternatives. If there are alternatives then the negotiator has the advantage of walking away to go and look for these other alternatives, for example, if there are different shops selling the same commodity then one can move to different shops until he gets the best commodity, also if there are different companies that manufacture the same product e.g. both LG and Sony produces TV sets then one has the advantage of comparing these products and make a decision on which one to buy. But if there are no alternatives then the buyer is disadvantaged and has to push for settlement near the seller’s demands.
Since the goals of the buyer and the seller are conflicting; the seller wants the highest price possible and the buyer wants the lowest price possible, there must be proper strategies in negotiations in order to come to an agreement and also the resources are limited each party needs to carry out negotiations in order to come to the settlement. There are two ways of dealing with negotiation in terms of price, if the buyer cannot come to agreement with the seller then he can walk away and look for alternative. In the final part one has to make commitment in the negotiation process, this can be done by making a payment for the product and collecting it after agreeing with the seller about all the terms and conditions.
Therefore, in the negotiation process one has to have clear set target and resistance point in order to succeed, also one need to have a good opening offer and should be able to make appropriate concessions and finally should be able to manage and fulfill the commitment process, all these will help in succeeding in the negotiation process.