Business Management Activity

Part 1: Name the factors that Ms. Smith should consider when negotiating with Mr. Jones. What should Ms. Smith do?

The factors that Ms. Smith should consider are that she needs to be prepared for customers who are going to negotiate. Mostly all customers will negotiate and Ms. Smith should be prep herself for this by studying habits and learning how to deal with negotiators. By preparing herself for the situation, Ms. Smith will know how to handle the customer and not let the customer walk away without accomplishing the sale. Ms. Smith also has to be sure to speak to the customer with professionalism and not insult the customer to the point where she may lose the sale. Another chance Ms. Smith is taking without preparing herself for the negotiation is that if she doesn’t research, she could possibly undersell. This would be a loss and something that could be avoided if the correct measures are taken. Underselling and insulting the customer is something that Ms. Smith is going to have to be careful of and must be sure she is prepared for the negotiation.

Negotiation is something that most customers, who are determined to “wheel and deal” are very good at. They could negotiate to the point where you are frustrated and will give in. This is a routine for negotiators and something that needs to be taken seriously. Customers find it amusing when they get into a negotiating war with a salesman/saleswoman. If the salesperson responds to the negotiators first price, the salesperson is giving evidence to the customer that the price was “overpriced” and the customer walks away wondering if they really did get a good deal. Once a customer wins a battle with the salesperson, that customer now knows that they are able to “wheel and deal” and will return for yet another negotiating price. Ms. Smith needs to come to a “happy medium” and both parties will win. When the customer returns again, they will realize that Ms. Smith is stern on her negotiating, has done her research...