Negotiating Tips , Negotiation Strategies April 30, 2012

Specify What Is Included

Let’s say that a major hotel chain specifies that they want 8 oz. water glasses, 2 for each of their hotel rooms...

Let’s say that a major hotel chain specifies that they want 8 oz. water glasses, 2 for each of their hotel rooms. Let’s say a seller bid $1.00 each based on that specification. Was this the best deal for both?

And the answer is- “not necessarily.”

Suppose the seller informed the buyer for the hotel chain that the seller’s standard 6 oz glass was available for 80 cents because they manufactured so many of this size for other customers.

Might not the buyer change his or her mind in order to save $200,000 on that order? At the same time, the seller could earn a larger profit than before by selling standard 6 oz water glasses. For the hotel guest, the change from 8 oz to 6 oz would make little difference.

The best way to look at a specification is to assume that a better deal for both parties may be possible if some changes are made to blend the seller’s specific production capabilities to the buyer’s specific use.

If the specification change is large, it may be necessary to reopen the bidding process. Just remember that specifications are negotiable in many cases.
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