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Old 07-16-2008   #46 (permalink)
Michael
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Socioeconomicly correct negotiation

Quote:
Originally Posted by ryberg View Post
I personally am on the side of not haggling, and this is in large part because of my exposure to the gulf between the incomes and socioeconomic levels of many of the people I've seen in the region and those of the people who can afford to travel to the region for vacations

But it seems the idea that the vendor may be expecting haggling is obviously important to them, and it seems that the socioeconomic discrepancies between them and the vendors is for their part not something they deem to be relevant.
So what you are saying is that my wife should not negotiate, but for some of her sisters (but not all) it is ok because their family incomes are less? ……???? (I'm certainly not going to be the one that explains this theory to Rosa and her sisters).

So how does this theory really work in practice? If I understand it properly (and I bet I don’t) in order to do proper Ryberg socioeconomically aware negotiation; Rosa should first ask for an audited income statement from the Jewelry store, and then if their income was lower than ours she is not allowed to negotiate. She has to move onto a store with a large enough income. And only if their income is higher than ours she is allowed to negotiate.

Hopefully I’ve got this somewhat right…..and my conscience is now somewhat clear….at least in regards to me negotiating for a lower price at Safeway. At least I’m hoping that the rule is based on the businesses earnings, and not the earnings of the individual employee that I am negotiating with.

Although that perhaps makes it simpler…I could start with “Show me your pay stub as that item is damaged and I want to ask for a lower price.” If the pay stub shows the employee is earning less than me I can then ask for a manager and keep going on until the appropriate socioeconomic balance is achieved and then I can ask for the discount. Though my guess is the employees are going to beg me to take the 20% off and leave the store before the manager even finds out. But I would know to hold my ground until someone earning as much or more than me offers me the discount.

I can’t help thinking the logic supporting all of this is somewhat flawed. …..anyway........ listening to Delmy explain to Rosa when she can and cannot negotiate using this socio-economic theory will be an education.

I could just see the result if Delmy did convince Rosa that this is how she should negotiate……Rosa is in Playa and she wants some jewelry but the vendor does not have an audited income statement. Rosa knows the asking price is far too high for that item she wants, and she is very certain that the sales person will probably accept 75% of the asking price. But as our family income could reasonably be presumed higher than the vendor she would not be right to negotiate. At first it seems that Rosa is going to miss out on that piece of jewelry.

But Rosa is in luck, Rosa’s widowed sister with 2 kids is with us. Rosa asks her to do the negotiation as there can surely be no inequitable socio-economic imbalance that would disqualify the negotiation. Her sister gets the item for 50% of the asking price and gives it to Rosa for nothing. A win win win. I’m getting the hang of this……..

Though I’m not sure that my boss is going to like my new negotiating style. Perhaps this chapter in my negotiation theory education should stay our little secret. Besides I know you are going to give me an F, as I did not really understand a word of what you where trying to explain.

I know you are not saying everyone in Mexico is poor..no way......you are certainly not saying that. And you are not saying we (my family) earns more than any retail business in Mexico. And you can't be saying we should not negotiate because there are some poor people in Mexico. If I was doing a deal with Carlos Slim you would not fault me from negotiating the best deal for my employer (or for myself if that was the situation). And so the diatribe above was the only sense I could make of what you posted.

I have a very big contract to close tomorrow, but I'll be using the theory that was taught to me in the class room for that one.
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