Section 2 Features of international business price negotiations

2.1 Buyer types

     Buyer types are broad categories used to describe the different behavior patterns of buyers. For example, a bargain hunter is someone with detailed knowledge or understanding of the item, whose main priority is to pay less than market value. A strategic buyer is also looking for a low price, but in consideration with the value of the item and the cost required to significantly increase that value.

2.2 Financial considerations 

 Financial considerations are part of every price negotiation, but there is more to consider than just the sticker price. Service costs are an important consideration, as are consumable materials required to use the product and the overall useful life of the product. Payment methods are also part of financial considerations, as this has an impact on cash flow.

2.3 The skills of the negotiators

     The skills of the negotiators on both the buyer and seller side have a huge impact on the outcome of these negotiations. A skilled negotiator has a clear understanding of the upper and lower bounds and the items where there is room for compromise. Delivery dates, payment terms, and service contracts are all part of the price negotiations.