Business Communication and Negotiation - Negotiation Simulation Report

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Our approaches started by introducing our self one by one and explain our circumstances in order to minimize the risk of miscommunication. After she understood our condition, we explain our plan to the seller that we offer a help for her to resell the product with a price higher than she usually sell. The negotiation was going very well, however we were lacking in obtain the vendor personal information, which is her name, and it’s actually a critical factor in negotiation process because you have to know who are you facing with.

The Negotiation: With the Vendor

All team member decided to sell the Bamboo bracelets. What we negotiated with the vendor is the price of the bamboo bracelets. Since we will sell the bracelet at higher price, the cost of Rp 5,000 for each bracelets is too high. We bargained with the vendor in order to have special price so we could sell the bracelets at fair price.

The vendor offer us special discounted price of Rp 10,000/3pieces of Bamboo Bracelets and Rp 5,000/2pieces of Rope bracelets. So the change of cost is:

- BAMBOO: From Rp 5,000/pcs —> Rp 3,300/pcs (rounded)

- ROPE: From Rp 3000/pcs —> Rp 2,500/pcs

Therefore, with such cost of each bracelet, if we could sell the bamboo bracelet at Rp 5,000 to the pedestrians, for each bamboo bracelet sold we could have 1 rope bracelet from the margin. To provide her(the vendor) a sufficient assurance that what we do is not a scam, we provide her Abri’s Identity card as the guarantee. In negotiation, by providing assurance we will get trust in return because without sufficient trust, our Win-Win Strategy can’t be implemented.

The Journey of the Bamboo Bracelet

With the both parties agreed to sell at that cost, we take 9 Bamboo Bracelet to be sold to the pedestrians. The bamboo bracelet will cost Rp 30,000 to us and if we succeed to sell all of them we will have Rp 45,000 which a margin of Rp 15,000 to get 6 rope bracelet that enough for each member.

To increase the efficiency of the selling bracelet, we split up into 2 groups. Not only the selling activities became more efficient, we will not intimidating the potential customers. In this moment all individuals are facing with another negotiations, which is us against pedestrian as the customers. What each individual do in order to negotiate with customer is we explain our circumstances that we have, the reason of the activities that we held. By explaining the condition, in negotiation it would become an advantages so the other party will acknowledge our position even though not every pedestrian is giving positive response such as trying to bargain the price even more. Since we also selling in one of the very popular landmark for tourist, we have the advantages of selling the bracelet in a broader segment, which is local tourist and foreign tourist.

The Outcomes

Amazingly, we are able to sold all of the bracelets, even though it takes approximately 1 hour. After we sold all of the bracelets, we return to the vendor to give back all the money and in return we also get 1 rope bracelet for each members, and also,of course, Abri got his ID back. In this simulation all parties ( Us and Ms. Vendor) interest are satisfied and benefitted by this simulation. Not only we get a bracelet, we also have receive unforgettable experience and moments that we will cherished and learn from it in the future. The picture below is the proof of how happy and satisfied we are after we succeed the simulation[pic 2]

CONCLUSION OF THE NEGOTIATION SIMULATION

In my personal opinion, what i have learnt from the simulation is how negotiation works in real life, what hurdles that I faced and overcome, how to make a quick decision that is not a haste one, and how to implement the negotiation theory in real life condition. From the experience, I also identified many hurdles that we will faced in negotiation such as rejection and several parties that hard to approached. Not only academic experiences, I also strengthen my bonds with other students, clearly understand how powerful a teamwork is and how the feeling of proud after achieving a goal with teamwork.