Learn how to turn information into negotiating success.

1. SkimaTalk Official Course
Negotiation Skills
Lesson 4: The Power of Information

2. Practice Negotiation #1
2
Situation:
l Your role: Buyer. You are at the electronics store and you want to buy a new television.
l Your teacher’s role: Seller. The seller wants to get a high price for the television.
Key Information:
l The listed price of the television is $2,000.
l Your research shows that the average price for this television is $1,500.
l This television is an old model. The seller wants to sell it quickly to clear space for the
new televisions.
Negotiation Instructions:
l Negotiate the price of the television with the seller.
l Use information and your knowledge of the seller’s goals to negotiate a good price.
l Your goal is to purchase the television for as low a price as possible. You might be able
to do better than market price ($1,500).

3. Practice Negotiation #2
3
Situation:
l Your role: Buyer. You are at the furniture store and you want to buy a new sofa.
l Your teacher’s role: Seller. The seller wants to get a high price for the sofa.
Key Information:
l There is no price tag visible on the sofa.
l Your sister bought a similar sofa at a different store for $500.
l The store is empty. You think it might be going out of business soon.
Negotiation Instructions:
l Negotiate the price of the sofa with the seller.
l Don’t forget to try some of the tips from earlier lessons in this course, including
threatening to purchase the sofa from a different store.
l Your goal is to purchase the sofa for the cheapest price, but you don’t want to go to a
different seller.

4. Negotiation Tips
4
l Do your research:learn as much as possible about competitors’ prices and
previous sales information.
l Selectively reveal your information to the seller: introducing your information
at the right point during the negotiation can help you achieve a good
outcome.
l Threaten to purchase from a different seller:if you and the seller can’t come
to an agreement, threaten to purchase the item from a different seller. Often,
this action will help you close the deal.

5. Information is Power
5
Information can help you gain the upper hand in a negotiation.
Some types of valuable information include:
l Competitors’ prices:knowing the prices of the competition helps you
understand what a “fair” price is in the current market.
l Previous sales data:knowing previous sales data helps you understand
how low a seller might be willing to go on price.
l Market dynamics: is this a market that is willing to negotiate? What is the
average discount in this market? Knowing the answers to these questions
will help you develop an effective negotiating strategy.

6. Sample Negotiation
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Buyer: How much is this rug?
Seller: This rug is 50 dollars. Do you want to buy it?
Buyer:
I like the rug, but 50 dollars is too expensive. A rug dealer next door sells
this rug for 10 dollars.
Seller: Yes, but my rug is better. Look at the fine material!
Buyer:
Well, I also know that you sold this same rug to my friend last week for 20
dollars. I am willing to pay 20 dollars, but no more.
Seller: OK, you have a deal. I will sell you the rug for 20 dollars.

7. 7
End of Lesson
We Hope You Enjoyed It!
© 2016 SkimaTalk, Inc.