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I think I am a relatively good negotiator. I have been able to close business deals which
have been favorable for the company I work for. I make sure I am aware of the pros and
cons. I also do research to make sure I am not on the losing end when negotiating.

3. How do you prepare for a negotiation?

Sample answer:
I set my limits first. I determine the least that I would accept to take away from the ne-
gotiation. I also make sure to research the issues that may come up during the discus-
sion. I make sure to do some research to prepare myself for crucial topics. This will lend
credibility to my ideas and may be able to convince them that my ideas are sound.

1. You are negotiating a better deal from your company’s suppliers to increase
profit. You need high quality materials at a lower cost. The manager of the
supply company was not able to provide the materials at a lower cost.

Sample answer:
I understand that high quality material may cost more to produce. I am not asking
you to provide the high quality material at the cost of the low quality material. All I
am asking for is a fair price for the goods. I am going to buy in bulk for a period of at
Least 2 years. It would be beneficial for both of us if you reduce the cost of the mate-
rials supplied. I would be able to sell my products at a lower price and make it more
appealing to the consumers. You would have the assurance that I would be buying
these materials from you, exclusively, for this period of time. For example, right now
you are supplying our company with 2 tons of steel each month at a very high cost. If
you were to reduce these prices by half, we would not need to get the materials from
other companies just to offset the cost of your materials. Our company is expanding
and production has been steadily increasing. This would be beneficial for your com-
pany as well.

2. You are at a bazaar shopping for gifts for your family and friends. You no-
ticed a lot of stalls selling similar items. A stall catches your eye; it has a wide
array of merchandise, saving you shopping time. However, it offers higher
prices compared to the other stalls. How will you negotiate?

Sample answer:
You have a good selection of gift items. I noticed, though, that the items you are sell-
ing are available on other stalls for a much lower price. I would prefer to buy gifts from
your stall, but not at such prices. If you would give me a better offer than the other
stalls, I would definitely buy from you. It would also be profitable for you since I am
planning to buy many presents for my family and friends. You would be able to sell a
lot of your merchandise in one day instead of waiting for more customers.

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