The Elements of Negotiation

ELEMENT 69Implementing NegoEconomics

To illustrate the process of NegoEconomics, this element follows a process that you can see in your mind's eye—buying a coffee table. But you have to go back to the late 1950s.

Buying a Table in the 1950s

Say that I have stepped back into the 1950s and I need a new coffee table. So I head to the furniture store. Where were all the furniture stores located in the '50s? At the city center.

Advantages: It was easy for customers to get there, and all the stores were in the same place. This made it easier to compare products and prices.

Disadvantages: The furniture stores had to pay very high rents. To make financial sense of things, selling prices were high, and stores could not afford to carry large stocks of finished furniture. Instead, they had displays where customers could choose and compare tables manufactured by different factories. This led to long delivery times.

I make my decision, and the order is written out.

Once the order is written out, I pay a deposit. I am told that the time of delivery will be at least five weeks. The store sends the order to the factory.

Advantages: A down payment made by customers served to finance some of the furniture store's activities. The store never ran any risk of being stuck with large stocks of unsold products.

Disadvantages: It took an awfully long time to get the product. Frequently, information of delivery times turned out to be incorrect, which caused a great deal of irritation. The seller ...