Download PDF by Robert Cissell: Mathematics of Finance

Download PDF by Robert Cissell: Mathematics of Finance

By Robert Cissell

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Now let’s add some layers of complexity to this example. Suppose you’re trying to sell the same widgets to Company A. You’ve opened the bargaining with an asking price of twentyfive cents for a total price of $25,000. While Company A is thinking over your offer, Company B approaches you with an offer of twenty-three cents per widget for a total price of $23,000. But—and this is a significant “but”—they’ll take delivery a month before Company A, cutting your warehousing costs. ) $26,000 (the $23,000 price plus the savings of $3,000 in warehousing).

It’s a two-way street. 34 Stop the Discounting Madness! Schiffman Says . . A negotiation is a dialogue. And a dialogue, by definition, is between two people. The other side has to participate. If, during a negotiation, you find you’re the only one talking, something’s wrong. Open up the discussion and get the other side talking. A basic way to open a negotiation that’s closed is to do what I tell you over and over to do: Ask questions. For example, in the case study above, if the customer stops talking, stops responding to your suggestions, ask him a question.

Third, and perhaps most important, the salesperson is trying to convince himself. On some level, he probably has succeeded. He’s thinking, “Sure, it’ll be tight making that delivery date, but we can probably do it, and anyway, it’ll be Logistics’ problem once I finish this deal. ” How can we tell from this dialogue that the salesperson is probably lying? There are some pretty clear signs. 40 Never Be Lied To Anyone who’s played poker is probably familiar with the concept of the tell. It’s a small change in physical behavior that gives a clue to the player’s opponent about the player’s hand.

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