Wednesday, December 30, 2009

Negotiation, Continued

(Continued from last post.)

Consider a buyer who is looking for a certain vehicle.  If negotiation is eliminated, the sticker price immediately determines whether or not the buyer can afford the car.  There is no option to possibly obtain the vehicle at a small discount.  Thus the shopping experience is actually made more, not less, difficult, because while Selection of the right vehicle is hard enough, finding the right vehicle listed at exactly the right price is even more difficult.

Target practice?

An analogy that comes to mind is forming friendships.  A single person can become friends with another single person fairly easily based on shared interests, experiences, and so on.  The number of elements that need to match is 1x1.  When these two single people get married, the ratio becomes 2x2.  It is harder for couples to find couple friends that haver the same cohesion, simply based on the odds.  Add children and the odds become 3x3 or greater.

Similarly with a no-bargaining situation.  The buyer may come across the precise vehicle they are looking for, but unless it is already priced within their pre-determined range, they are out of luck.  They have no options for changing their circumstances:  they can only adjust to circumstances, or walk away.

Certainly the life skill of being able to adjust to circumstances is laudable.  But virtually all human progress has been a study in finding ways of adjusting circumstances-- changing the environment-- to suit us.

Still more to come.

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