Negotiation Margins

[Tzarkov]

This is a though question,

Many of you will shy away from it, but nevertheless, having the young entrepreneurs in mind it would be useful for the community here to have an idea of how this works in different negotiations.

I am sure it varies depending on the industry and the countries/social setting one is in. As a rule of thumb, you will not exceed nor fell short of how much push and pull the other side is expecting.

For the YEs, there is no economic and easy way to learn what is the expected margin for a given setting, this way It would be useful if we share some thoughts on how to perceive what the other side expects in terms of negotiation length and toughness.

So how do you set your negotiation margin?

[JohnYE]

Hi Pablo,

I think that when you say it varies depending on the situation, you've said it all. When I buy a car for instance, I have an idea of their markup and will play hardball to get the price I want. On the other hand, if I'm buying a bike off Craigslist, I might even pay asking price if I know it's fair. Obviously those aren't business examples, but you get the idea. There are so many variables, it's probably not possible to have a rule of thumb on such things. It will be interesting to see what others have to say on this.

Thanks for the thought provoking question!
John


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