negotiation skills assignment

My topic is about personal negotiation that I experienced in 2008.
I am a student representative of the first year in economics department. In Korea, university students go on a trip for membership training every semester. It has been a long-standing tradition to make students have a strong bond each other.
As a student representative, I am in charge of organizing the trip even though I am just one of freshmen. Furthermore, there isn’t the student union in the department of economics which might be able to help me how to organize it. Anyway, first of all, I announced the trip to students that we will go on a trip in beginning of April weekend. After announcing the trip to my classmates, 40 students were interested and replied to me.
In my hometown, There is one area where is appropriate place for a trip. Not only it is located in near beach, but also there are many cheap accommodations to attract travelers. Many university students often go there for membership training.
To be aware of the accommodation fee, I gathered some information from my acquaintances and friends. Here is the information that I gathered.
At the beginning of April is the low- demand season because the mid-term exam is about to come.(March is usually the high-demand season)
In high-demand season, the accommodation fee is generally 500$ for 40 students.(1night/2days)
In low-demand season, the accommodation fee is generally 350$ for 40 students.(1night/2days)
The owner of accommodation may play high-low positional negotiation game to make more profit.
There are 5 accommodations where can accept 40 students in that area.
Few days ago, I went that area before making a reservation to see the inside of accommodations as well as to check the accommodation fees. Among 5 places, I found one fine accommodation. It have three bed room, one living room and the kitchen. The quality of facility is fine too. Most of all, it is the closest one to the beach compare to the other accommodations.
The owner said the fee is $430. But it is pretty expensive. I want to save the money for accommodation fee as much as possible. If it is possible, I can buy more quality food and vegetables for dinner. Moreover, the money still remain after the trip, I can keep the money for the other purpose to support students.
She thinks that I’m mere young student who is not used to deal with older person and money discussion.
1. Affected Parties
Advisors – Seniors and acquaintances
Information sources –My friends and acquaintances
Decision Makers - Me , the owner of the accommodation
Blocker – absence of the student union
Influencers – students
2. Interests by parties
Me
1) Goal
a) As a student representative, I need to organize and finish the trip successfully.
b) To make the students be satisfied about the trip(Make them have better bond)
c) Succeed to have an agreement 2) Needs a) The location: If the location is closer to the beach, It is much better to satisfy the students
b) The quality: the quality of the accommodation
c) Save the money: If I can save the money about accommodation fee, I can use rest of money for better food and the future activity 3) Concerns a) Absence of the student union. If there were the student union, I could be helped how to deal with the owner and have some information about the accommodation.
b) Lack of the time for organizing the trip by myself. I need to make a reservation as soon as possible to organize other part of the trip.
c) The social position: In Korea, The age is very important elements. In negotiation, the owner might use his higher position to overwhelm me. Moreover, he is experienced owner for negotiation The owner of the accommodation 1) Goal a) Making more profit b) Succeed to have an agreement
2) Needs a) Making a new regular customer to be in higher position of competition
b) Having a good reputation among students (Worth of mouth) 3) Concerns a) low- demand season. If this student conclude that he doesn’t make a reservation from my accommodation, There might not be an another customer.
b) Lose the customer to the other competitors
3. Options for agreement – on the table
Suggest the fee as $400, with permission of extra people (In case of some senior or students want to join later, the owner isn’t going to charge extra fee)
Cleaning up the accommodation such as folding up the bedding, sweep the floor (owners usually use part-time worker for cleaning up the accommodation. This option is possible because Korean housing construction is based on a papered floor)
Posting a comment of the accommodation in the university community website.
Otherwise, getting a discount for next time.
4. Standard
In high-demand season, the accommodation fee is generally 500$ for 40 students.
In low-demand season, the accommodation fee is generally 350$ for 40 students.(1night/2days)
(The information is based on the experiences of the other students) If I set up the trip in March, I’m willing to accept the accommodation fee. However, April is quiet low –demand season. I asked several seniors and friends who have been to that area in low-demand season before, and they told me that the fee is generally 350$ for 40 students. This information can be good sword to the owner.
5. Alternatives 1) Their alternatives Have an agreement with the other customers who is interested in the accommodation in that weekend.
2) How might you gently worsen the value or perceived value of their alternatives? Emphasize the number of people. 40 students is basically very large number of people. The accommodation fee is designed to how many people stay in the accommodation. It means the owner can make more profit if he chooses use.
3) Your alternatives Making a reservation in another accommodation
4) How might you improve your alternatives? The reason why I want to reserve this accommodation is because I want to offer better location for students. However, if I can’t reduce the fee, I can’t help choosing another accommodation although it is further from the beach. Students will understand my decision if I offer better foods in dinner and other things instead of paying high fee.
6. Commitment Reducing the fee to 380$. Based on the standard, it has to be around 350$, but it has good facility and especially the location is very good, I’m going to suggest the fess as 380$.
Furthermore, by suggesting some options as I mentioned, we will have an agreement each other.
The fee is 380$
Cleaning up the accommodation as much as possible.
Promising worth of mouth and to be a regular customer in the future
Posting a comment and opinion about the accommodation in the university community website.
7. Relationship
The relationship university students and accommodation owner are indispensable. In Korea, every semester and break, we go on a trip for membership training. Of course, we can find new accommodation every time we go on a trip, but generally, we often use the accommodation of where we are aware.
From my perspective, I just entered university and I’m in charge of organizing the tip as a student representative. It means I will go on a trip at least 5~6 more times until I graduate from the school. Even though there isn’t the student union in this year, there must be the student union in next year. When the student union is established again, going on a trip will be more active. If I have a good relationship with the owner, not only I may be able to get a discount but also can occupy better room when I use the accommodation.
From the owner’s perspective, if he keeps a good relationship with high potential customer like me, they can make regular profit in the future. Furthermore, University student community is collaborative and interactive; we usually share good information like I got information from the other friends. They can gain new customers from the worth of mouth and regular customer’s introduction.
8. Communication
In terms of the negotiation, the owner is quiet experienced and professional. In Korean society, the age is very important segment when we have a communication. The owner is much older than me, so he might use his position to overwhelm me. In my case, I need to be very polite but assertive to satisfy my interest. I’d better using indirect and friendly way for my opinion to suggest my opinion. In communication, emphasizing the long-term relationship will help to satisfy our interests. If we share some information like low-demand season, the location of the accommodation, we will be notified what we want.
9. The negotiation process In negotiation process, the first, he might explain why the fee is 400$. He will mention about the reason such as the best location for the students, the quality of the accommodation. Even