Price negotiation in Indian commerce serves functions beyond determining transaction price—it establishes relationship, assesses counterparty, and arrives at prices both parties consider fair. Through negotiation, each party learns about the other: the supplier assesses customer knowledge and relationship potential; the customer assesses supplier honesty and flexibility. What is revealed affects willingness to build ongoing relationship. Negotiate vigorously but fairly, demonstrating commercial competence while maintaining respect.
Poor negotiation behavior (excessive demands, bad faith, disrespect) may conclude a transaction but prevents relationship development. The negotiated price reflects relationship-appropriate fair dealing—the same item may command different prices for different customers based on relationship. When working with Indian counterparts, do not view negotiation as adversarial contest but as mutual process that establishes relationship alongside determining terms.
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