SALES Success : Negotiations versus Haggling Or Bargaining
Introduction or overview of the article
- Here the article in depth discusses Haggling Or Bargaining which is short-term, price-oriented work or sales process in some sense and so also how negotiations are done in regular sales.
- Haggling Or Bargaining is a situation where both sides seek instant money gains.
- None of the sides try to give bigger or long-term advantages.
- It is generally there at the Core much of a result of emotions, tenacity both ways and quick decisions as much as by will.
- On the other hand negotiation is a strategic process that takes long-term partnership possibilities in the relationships.
- That is take into account the terms & conditions & quality of service or product.
- So also other elements into account outside of pricing.
- Here in negotiations to establish a win-win situation whereby all sides feel happy :).
- One needs proper investigation, persuasion, and problem-solving abilities both ways.
- Negotiating focus on trust both ways, & matching interests, and reaching a stable agreement that benefits all engaged in the sales process.
- unlike the Haggling Or Bargaining situation, which is sometimes hostile.
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sales discussions or negotiations against Haggling Or Bargaining
- There are generally Not many negotiations in Haggling Or Bargaining. But instead in negotiations, both parties are involved in interactive discussions to reach a concurrence on matters like sales of a service or product. But overall the scope of both of them is different so is the approach to solve problems different and intends to solve problems differently.
- Now negotiations in general are much broader in scope and they are used for example in salary announcements or diplomatic channels, say between two countries. Or in resolving conflicts between two companies or parties and also in business deals.
- So the focus on negotiations is generally win-win, so that the outcome is beneficial for both parties plus a long-term perspective is taken into consideration.
- Also negotiations involve multiple variables like basic terms and conditions of warranties or even price as well. So makes it more Complex.
- So also negotiations are strategic; where Persuasion is rather than just only price reduction to sell a service or product.
How do sales negotiations work differently from Haggling Or Bargaining?
Broader in Scope:
- Now sales negotiation focuses on the quality and the services that are guaranteed on both sides. The idea is to keep both parties ( the seller and buyer ) happy.
- So the sales discussions would include the payment terms the payment amount & the delivery schedules. Plus, the possible product customization and warranties and focus on long-term relationships are there.
- But in Haggling Or Bargaining the focus is primarily on reducing the price.
- So for example for the business case of the retail chain person.
- So not only the price for a unit would be important but for large orders the overall discount and say special product rights the marketing support to the retail chain person is important. So possible return policies for the retail chain guys’ customers are also important.
- So in negotiation long-term contract would also help in this situation.
- The game is also to make the entire interaction more flexible.
- So the conversation may go beyond the cost and there is a contract in place to advantage of both sides.
- Not Only the price reduction but the supplier may provide a flexible payment to enable proper cash flow to the retail chain person.
Focus on Win-Win:
- So as the sales need to build more value at both ends.
- unlike Haggling Or Bargaining where only one party wins at maybe the expense of the other party.
- The focus instead in negotiations is for the stronger relationship to repeat the business and a creative win-win situation.
- Salesman may try to make excessive profit-driven efforts, so, in the end, the customer could feel bad and exploited.
- So also in case the Customer is demanding an unjust agreement, then the seller would have to make compromises which again could create problems later on.
- So all these issues are addressed in case of negotiations.
- So for example in the software business if the negotiation with a contract is there.
- About the basic cost of the contract, so also there could be a focus on the maintenance package as well. So also overall guarantee for long term relationships would help.
- So maintenance helps the end customer in terms of guarantee which would help him to manage the software if something goes bad.
Complex:
- Negotiations in sales are much more of Complex process where the long-term strategy of the company has to be aligned with the sales.
- The Haggling Or Bargaining process on the contrary may have the main goal usually quick price reduction to make itself.
- So in negotiations the contract is important and the salesperson needs to have a tab on customer wants and what the competition offers. So also the pricing policies of the organization have to fit in the deal the best way.
- So again legal issues could be important and more elements like agreement and other stakeholders being part of it in the negotiation process could be added to make it more comprehensive.
- In sales business say for example someone selling industrial equipment can work with the customer for several months before making the actual sales.
- So the cost is not only the items cost it could be the maintenance cost and the cost of maybe training the staff at the customer and.
- The financial choices and possible future improvements in the product are also important.
- So also is the deal open for further negotiations?
- So this process reinforces confidence between the two parties and helps in long-term commercial partnership.
Sales is Strategic
- So sales may not be just convincing a customer to buy a product.
- It generally involves a long-term sales strategy that alliance with the selling company goals and yes with the customer needs as well.
- Strategic sales involve customer psychology, the basic market Trends that are running at that time, and the competitive positioning of the product or service.
- So at the end of the day sales focus on relationship building value creation and long-term engagement rather than closing a single deal.
- So sales strategy may include identifying the target customers & then positioning the product or the solution effectively. So also after-sales support ensures the retention of the customer, IN addition with the excellent service and follow up also helps.
- So one can say that a well-planned strategy ensures a very sustainable & steady growth and maximizes the revenue over time for the sales company.
- So is the strategy of taking continuous customer input and proactive modeling or enhancement of products or services using customer feedback to improve the sales techniques.
- So generally businesses that take a strategic approach invest in training their sales team to develop a strong brand message in creating a seamless or relaxed customer experience.
- The tactical sales which is short term quick reactive.
- Sales are about building trust and profitability leading to repeat business and referrals and maybe long-term profitability as well.
What is Haggling Or Bargaining ?
Narrower in Scope:
- Haggling Or Bargaining is more Narrow in scope and it’s primarily about price bargaining.
- One Can see Haggling Or Bargaining in car markets or sabzi or say vegetable markets, both of are which mostly in more informal settings.
- So Haggling Or Bargaining has more to do with win loose and the focus is often competitive. Which focuses on one party trying to win at the expense of the other.
- Haggling Or Bargaining is simple and generally goes after a single issue which is price.
- This Haggling Or Bargaining happens in the Tibetan market so small-time markets in India.
- Haggling Or Bargaining involves talking big or putting pressure or also involving Persuasion of the customer.
- So taking an example of a job candidate there is a negotiation of salary benefits and along with maybe flexible terms of work like remote work with HR.
- A typical example is like buying fruits in some random market.
- Buying a tourist office Souvenir in a street market.
Why is Haggling Or Bargaining in Sales: More Limited in Scope?
Narrower in Scope:
Haggling Or Bargaining happens in unofficial or unplanned marketplaces, like Sabji Market or say flea markets.
- There is a one-time transaction rather than a consistent or continuous transaction in this work.
- So in contrast to regular negotiations it does not entail long debates over any strategic Alliance or value-added benefits.
- Direct negotiation techniques are used.
- So also like buying fruits in a regular market is a form of Haggling Or Bargaining .
- So the customer will haggle to inflate the prices naturally.
- So with little or no focus regarding product quality or guarantees of future purchases, here the total focus is on how much money the buyer is ready to pay to the seller.
- As the negotiations in Haggling Or Bargaining are very aggressive both sides try to defeat each other, instead of looking for a middle ground in sales.
- So in this process of competition say the buyer says I can pay only less price the seller can reduce the price and remove some of the features.
- Hackling is generally not for mutual benefit.
- One side feels that they have given more than what they intended to in the process.
Bargaining in Haggling Or Bargaining is simple
- So usually Haggling Or Bargaining does not with many variables under consideration or long-term conversation say as an example as it is in a vegetable market.
- So it is based on gut feeling like the vegetables are good, or to manipulate the matter maybe the seller might have put more water or some color to make it look good.
- Plus Haggling Or Bargaining here is based on snap decisions and focuses directly on the price cutting rather than research or methodical negotiations.
- The method of interactions is in-formal and can be settled in minutes or seconds.
- So like in a typical Sabji Market( vegetable market) or farmers market the customer can ask if you can give me and discount. The buyers may say if you give me a discount I will buy 5 kgs instead of 1 kilo.
- The other side may agree or not agree but still, the convergence happens very quickly.
- So with a few back-and-forth interactions between the buyer and the seller and without mention of future purchases or any extra services the deal goes through of selling whatever is involved.
Negotiating in Haggling Or Bargaining: Tactical
- So Haggling Or Bargaining is a very short-term and tactical effort as we can see. Here the core focus is a reduction in the prices or some form of concessions.
- So handling involves very quick decision making understanding the customer and also using persuasive techniques.
- Plus includes immediate adjustments in sales to close a deal.
- Imagine a flea market or a farmers market.
- So it is Unlike the regular strategic sales where the long-term relationships and value creation of a high value are there.
- It is mostly competitive and the core goal is the possible price at the moment to do sales. which may or may not lead to the business in the future.
- So also price sensitivity and customer behavior reading is very important in the Haggling Or Bargaining business.
- In high-stress sales situations just like we have in markets which are unplanned generally. Or maybe say at retail locations.
- So also for high-volume product sales the tactics of Haggling Or Bargaining sometimes help.
- Haggling Or Bargaining is restricted in scope, as price is the core consideration.
- Extra Haggling Or Bargaining could create bad blood or tiffs in a given situation.
- If a company focuses only on bargaining or having that it will not be able to retain the customer base for a long time.
- So to generate interest or make the buyer interested or inclined. The Haggling Or Bargaining focuses more on short-term strategies like talking too much or bluffing or gradually or somehow building a sense of urgency.
- So in the strategy situations long-term value is taken into account.
- Haggling Or Bargaining could create urgency by walking away showing that you are not interested in the situation or doing something to understand the boundaries the other customer has regarding payment.
- In A typical competitive situation the customer or the buyer says “Oh I got this at a much lower price in some street market”.
- And the sales guy to counter this sentence from the buyer could say “Oh this is the last piece” or create a sense of urgency.
- Also this is the last piece at this price and if you don’t go for it someone else will go for it.
- Focus here is quick negotiations instead of focusing on the benefits of long-term association.
Conclusion
- This article very clearly discusses the scope of negotiations versus Haggling Or Bargaining .
- Haggling Or Bargaining is more short-term reactive and practical and sales are more relaxed and more plant for long-term benefits both face or windmill creation.
- Various examples are given to explain this point.
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