What are Bargaining Skills?
Bargaining skills can help buyers and sellers negotiate the specifics of the deal and eventually come to an agreement.
Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service dispute the price and the exact nature of the transaction with the goal of coming to an agreement. Like negotiation skills, you can practice and improve your bargaining skills.
Bargaining is often positioned as a way for two or more parties to act as teammates seeking a common goal. This “working towards the same thing” is common as an alternative pricing strategy to fixed prices.
For example, if it costs a retailer nothing to engage and allow bargaining, he can divine the buyer’s willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace.
That’s why it behooves anyone to work on improving their bargaining skills. Even though you may not use them often, when you do, they could help you forge a better, more appealing deal.
You can improve your bargaining skills and discover how to boost your power at the bargaining table in this free special report, BATNA Basics: Boost Your Power at the Bargaining Table, from the Program on Negotiation at Harvard Law School.
We will send you a download link to your copy of the report and notify you by email when we post new business negotiation advice and information on how to improve your dealmaking skills to our website.
The following items are tagged bargaining skills: