SPC Sales Negotiation 2 — Questions and Answers
Question 1: What is the 'zone of possible agreement' (ZOPA) in a negotiation?
- The highest price either party would ever consider
- The range between each party's reservation price where a mutually acceptable deal can be reached (Correct answer)
- A written contract zone for legal agreements
- The salesperson's target commission range
Correct answer: The range between each party's reservation price where a mutually acceptable deal can be reached
ZOPA is the overlap between the seller's minimum acceptable outcome and the buyer's maximum willingness to pay — where deals actually happen.
Question 2: In negotiation, what does 'trading on differences' mean?
- Leveraging cultural misunderstandings
- Identifying areas where parties value things differently and exchanging what is cheap for you but valuable to the other party (Correct answer)
- Arguing over different interpretations of the contract
- Adjusting pricing based on geographic differences
Correct answer: Identifying areas where parties value things differently and exchanging what is cheap for you but valuable to the other party
Trading on differences creates value by exchanging items each party values differently — giving away what costs you little but matters to the other side.
Question 3: What is the risk of making unilateral concessions without asking for something in return?
- The customer will immediately sign the contract
- It signals that your original position was inflated and encourages the customer to keep pushing for more (Correct answer)
- It builds the strongest possible trust
- It is required by law in many U.S. states
Correct answer: It signals that your original position was inflated and encourages the customer to keep pushing for more
Unilateral concessions train the customer to expect more movement, undermining your credibility and eroding margin unnecessarily.
Question 4: Which tactic involves a negotiator claiming they need to get approval from a higher authority before agreeing?
- Anchoring
- Good cop/bad cop
- Limited authority (Correct answer)
- Bogey
Correct answer: Limited authority
The limited authority tactic slows negotiation, reduces pressure on the negotiator, and creates room to revisit concessions already made.
Question 5: What is a 'package deal' strategy in sales negotiation?
- Offering only one product at a time
- Bundling multiple terms (price, delivery, payment terms, support) into a single proposal to create flexibility and avoid item-by-item negotiation (Correct answer)
- Sending the proposal in a physical package
- Combining competitor offers into one document
Correct answer: Bundling multiple terms (price, delivery, payment terms, support) into a single proposal to create flexibility and avoid item-by-item negotiation
Package deals prevent the customer from cherry-picking only the most favorable terms and allow the seller to make trade-offs across multiple variables.
Question 6: When a customer uses the 'bogey' tactic, what are they doing?
- Threatening to end the negotiation permanently
- Claiming a certain issue is a major problem for them when it is actually a minor concern, to gain concessions (Correct answer)
- Offering a very high opening bid
- Requesting the salesperson's supervisor join the call
Correct answer: Claiming a certain issue is a major problem for them when it is actually a minor concern, to gain concessions
A bogey is a pretend constraint used to extract concessions on a term the customer does not actually care that much about.
SPC Sales Negotiation 2
What is the 'zone of possible agreement' (ZOPA) in a negotiation?