Sunday, June 28, 2009

DearDeer Negotiation

In situations where you want to buy something
1) that is useful to you - you absolutely need it
2) from a person known to you - you will continue to interact with her
3) which is dear to that person - she would want it to be maintained properly.
4) which that person knows is useful to you - she knows you will gain from it.

There are many risks associated with just the exploration of the possibility of a fair deal in these scenarios. You would not want to haggle and bargain too much; you don't want to damage the relationship by exposing each other's cheapness or greed. At the same time, you would not want to pay too high a price either; you will feel that you have been exploited. Or it may be that you might think that you are doing the other a favour and that favour could weigh heavy in the future...

I'm calling this the DearDeer Negotiation technique (rather lame, I know :), imagine it is a pet deer being sold! :)). If both parties can agree to not resort to exploitation or greed, then a fair deal (to the deer as well) could be arrived at like this.

1. Take a piece of paper and write down
Your minimum:
Your maximum:
Your optimum:

2. Take another piece of paper and ask them to write down
Their optimum:
Their minimum:
Their maximum:

3. Average all three items for both
This should be done by a third party if secrecy needs to be maintained.

4. Apply the decision criteria.
If the averages are not within say 20% of each other, a fair deal does not exist (one of the reasons explained earlier will apply ) and both parties may walk away, with no damage done.

Or, you may choose to take it up as a matter to be reconsidered and discussed. There might have been factors that neither of you considered. It can be the starting point for a more direct negotiation.

1 comment:

  1. hmm..Nothing wrong with the thought process