Negotiation Analysis (TOYOTA)

1266 Words 5 Pages
Negotiation Analysis
Negotiation
Tsai Tzong-Fang (Kelly)
I have stayed in Chicago for seven months. Everything like housing, school works, livelihood and so on are going well. However, I found something really inconvenient when I go to Costco or Target to buy some daily necessities. I always have to carry lots of stuffs home after purchase. I feel so tired about that especially in this chilly weather. Therefore, I decided to buy a car to solve this problem. Then, I asked my friends and parents which kinds of car is fit for me. I not only considered many factors, such as, price, car size, engine power and so on, but also did lots of comparison to make the decision. Eventually, I decided to purchase TOYOTA Yaris. What 's more, I decided to have
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However, it 's not a good strategy for me reveal myself in this negotiation. When I walked in to the TOYOTA store, a seller came to me and asked me what can he did for me. Then, I pretended that I had no interest in their car and told him I prefer HONDA 's car more than TOYOTA 's. The strategy I used is Bogey strategy. He looked a little nervous and started introducing me how nice their cars are. After few conversations, he knew my budge was limited so he recommended me TOYOTA Yaris which is cheaper than others. Then, I made my first offer at USD$ 14,000 which is lower than my reservation price(USD$ 15,000) in order to confuse about how much was I willing to pay and then have more space to negotiate the price. And that is called high ball/Low ball strategy. I knew in mind that I can 't reveal my BATNA or reservation price to the seller. Then, he told me that the price they set is USD$ 15,945 so there 's a big gap between what I said. I knew I have to be silent and patient to negotiate with him. He said he can sell me the car at USD$ 15,500 but I told him it 's too much for me. After few conversations, he asked me what will I do later. I told him I had an appointment with HONDA 's seller to try cars. I understood that I can 't lie about my BATNA but I supposed that it will help at that time. Then, he tried to convince me to believe why the price he sold was higher than what I though. If my concept is right, he

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