Negotiation leverage
Normative leverage is the use of standards and norms that are good for both parties (buyer and seller).
For example, a buyer says he only pays blue book value for cars. You, the seller, show him that the blue book value is what you are charging him.
Positive leverage is the sellers ability to provide what the buyer wants.
For example, the seller has positive leverage when the buyer says, ”I want to buy your car”.
Negative leverage is the seller's ability to make the buyer suffer.
For example, “Buy from me or I'll ruin your reputation”. Negative leverage is usually the seller's last resort or 'nuclear' option.
Buyer leverage is the bargaining power the buyer has purchasing goods and services, including
the scarcity and abundance of the product, similar products and more. The relative buyer's leverage determines the nature of the business and the price and terms of transactions.
Procurement managers use their past purchases to get better deals from sellers vying for their business.
Wikipedia
Tuesday, December 14, 2010
Subscribe to:
Post Comments (Atom)

No comments:
Post a Comment