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The Bargaining Process in Negotiation In this session, you’ll learn: the choice of bid; Presentation of bid; Responsiveness to bid; Starting the bargaining process; Making concessions; Breaking an impasse; Towards settlement. and practice negotiating a deal. The Bargaining Process Proposal (报盘): offer of prices Tactics of the choice of bid * For sellers: the highest defensible bid (递盘) * For buyers: the lowest defensible offer(发盘) the choice of bid: The guideline is to start with the highest defensible bid.(for buyers, the it is to start with “lowest defensible offer”) The opening bid needs to be “the highest ” because: – The opening bid sets a limit beyond which we cannot desire. Once made, we cannot normally put in a higher bid at a later stage. – Our fist bid influences others in their valuation of our offer. – A high bid gives scope for manoeuvre during the later bargaining phases. – The opening bid has a real influence on the final settlement level. The higher we set the more we shall achieve. The components of the opening bid: -- price, -- delivery, -- payment terms, -- quality specification, -- and others. The opening bid needs to be high. At the same time it must be defensible. Bidding is not simply the business of one side of either the seller or the buyer, the bidding side should not only seek tohis own advantage but also take the acceptable possibility of the other side into consideration. Therefore, putting forward a bid that cannot be defended will damage the negotiation process. It is found to be offensive by the other party. And if wen cannot defend that bid when challenged in subsequent bargaining, we lose face and credibility. The “highest defensible bid” is not an absolute figure. It is a figure that is relevant to the particular circumstances. If we face a lot of competition, then we must tailor our opening bid to the level at which it least enables us to be invited to continue the negotiation. The content of the bid of course
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