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you could do to lower the budget for the project without compromising quality. You
should also believe in the capability of the team to bargain and negotiate with the
clients.

3. What is the important point to remember when bargaining?

Sample answer:
It’s very important to keep in mind that in negotiations, the other party may want
to bargain on the aspects of the proposal. Leave some room for the bargaining, and
make sure that you have supporting documents and information available to back up
your statements.

1. You recently received a proposal from your business partner to expand your
businesses. You like the proposal. However, and you noticed that the pro-
posal implies that your business partner may benefit more than you will.

Sample answer:
I would study the proposal carefully. I will look over the figures presented in the pro-
posal and assess whether the venture would benefit us mutually. I would also conduct
my own research into the proposed expansion. If I have any concerns about the pro-
posal, like the necessary capital, profit margins or time constraints, I would bargain
using the information and documentation, I have gathered and suggest amending
the proposal.

2. You are tasked to source new suppliers for your company’s expansion proj-
ect. Different companies have submitted their proposals and you have
picked the top company to provide your company’s needs. They demand
a higher price than the other companies do. How would you bargain with
them to ensure that the project does not exceed the budget?

Sample answer:
Once this company has proven to be the best company to supply our needs, then I
would request to meet with them to discuss the terms. Before the meeting, I need to
assess the market, to check if their price is competitive enough, and to research into
the cost of producing their materials. During the meeting I would bargain by first pre-
senting an alternative to the price they are demanding and expound on the long-term
benefits of being our supplier. Using the information obtained during the research
conducted, I would show them the projected profit they would gain over time by re-
ducing the cost to meet our budget.

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