m anaging your p ersonal f inances / u nit 8 :n egotiating r ules and b argain s hopping

MANAGING YOUR PERSONAL FINANCES/

UNIT 8 :NEGOTIATING RULES AND BARGAIN SHOPPING

DO NOWCan you remember a time when you tried

to bargain with your parents how late you can stay out on the weekend? What happened?

Did you agree on a time or did one of you walk away?

Would there have been an easier solution where both sides could have been happy?

STANDARD 8.1Students will be able to identify and use the seven negotiating techniques.

LESSON GOALSI can Define the shopping terms: negotiation, and win-

win situation. List and explain the 7 basics of negotiation. Identify commonly negotiated items and

stores/locations where to find these items. Complete 7 Basics to Negotiating Handout

VOCABULARYNegotiate- To deal with or bargain with

another or to bring about by discussion a settlement of terms.

Win-Win Situation- is an approach to negotiation in which the parties structure an outcome so that all leave with a desirable result.

PERSONALIZE Please explain a win-win situation in your life…

What would you have differently in negotiating this deal based on our notes?

7 BASICS OF NEGOTIATING

1. Use walkaway power

2. “That’s Not Good Enough”

3. Good guy, bad guy technique

7 BASICS OF NEGOTIATING (cont.)

4. “If I take away technique”

5. Use Cash to purchase/bargain

6. Use the Silence Strategy

7. Always tell the Truth

ITEMS TYPICALLY NEGOTIATEDCars- Car dealerships, Used car lotsHousehold Items- Flea Markets, yard salesHomes- Real estate officeAppliances- Sears, Lowes/Home DepotVideo Game Items- Ebay, Game stop etc.Service Repairs- mechanic, contractor, plumberFurniture- liquidation sales, consignment shops

DETAILS INCLUDED IN NEGOTIATIONS

Shipping Fees- Who will pay? Buyer or seller or meet in the middle?

Warranties- extension of useful life of the product.

Installation Fees- common with Comcast, Dish, Verizon or other cable providers.

Accessories- Freebies or other perks which “sweeten” the deal.

LIST ONE OF YOUR OWN Please list one other item you would negotiate with a

deal.

Please make up a sample deal and include something extra you would persuade the salesperson to “throw in”

as a sweetner.

EXIT TICKETPlease list an item you might be interested

in purchasing in the next year….Which negotiation strategy do you think

would work best for that purchase?