1.3. THE NEED FOR SATISFACTION
Everyone likes to secure a bargain; to buy something at a better price than was available before. You only have to visit department stores on 27 December to witness the effect that securing a bargain can have on people's behaviour. Such can be the frenzy that it is not unknown for violence to be used where one person feels another has pushed ahead of them in the queue. Many people just can't help themselves when there's a good bargain to be had. In extreme cases people will buy things they don't want or even need if the price is right.
1.3.1. What is the right price?
The popular TV programme The Price is Right that ran through the 1990s pitched people against each other to name the retail price of everyday items ranging from TVs and freezers to holidays. The challenge was simply to guess the retail price of the item presented to you more accurately than the other competitors. Even on these common items which are continuously advertised, more often the price guessed was wrong and often by more than 25%.
In business, what is the right price? The answer depends on a whole range of other issues which, of course, need to be negotiated. So how do you manage the other party's need for satisfaction? That is, their natural need to feel as though they got a better deal than was originally available.
Do you start out with an extreme opening on price?
Do you introduce conditions that you are ready to concede on?
Do you build in red herrings (issues which are ...
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