Purpose of Negotiation

By | October 15, 2015

Purpose of Negotiation

Noor Ahmed Raaz
B.Sc. in Textile Engineering (CU)
Specialized in Apparel Manufacturing
A.M.C.S Textile Ltd (AEPZ)
Email: raju.uttara105@gmail.com



Negotiation is a procedure of argument which takes place between two parties. In garments trade one party is importer or buyer and another party is supplier or manufacturer. The object of negotiation is to make a final decision where the decision will be accepted by both party. In negotiation both party will represent a series of demand for their own favour.

Purpose of Negotiation:

The major purpose of negotiation is the wining of the both side. One side will earn profit continuously and another party will lose, it is not beneficial for both positions. For example, an importer is in illogical wining situation and the supplier is in losing position.

Temporarily it can be assumed that the business is beneficial to the importer. But target of every company is to run their business for a long time. In case of above business situation, the supplier may avoid buyer any time. Due to the avoiding a greater impact may be reflected upon the importer’s business. Then it will be difficult to run the business smoothly for the buyer. On the other hand an experienced supplier can gain logical profit from an inexperienced buyer. But when the buyer will understand real scenario, then this type of supplier will be deleted. Not only to that buyer, will this bad reputation be spread out very soon in the market, which may be a great loss to the business of the supplier. This type of situation is not expected to both buyer and supplier. As target of each is to run their business for long a time.

To avoid this situation, negotiation is very important in long term business issue. By a successful negotiation a better relationship is built up between buyer and seller. So both parties show interest to continue their business with each other. As a result it becomes very easy for both parties run the business for a long time, which is the ultimate goal of any company.


So, the importance of fair negotiation is very important for both buyer and seller. But finally some demands are compromised to take a neutral decision where no party will lose and each party will be as at the final stage of negotiation both parties remain in winning situation. This situation is known as win-win situation which is the main goal of a merchandiser.

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