SKILL-DEVELOPMENT EXERCISE 10-2 IDEAS and
CLASS HANDOUTS
Car Dealer Negotiation (R)
This exercise is group-based as students work in teams of two to role-play buying and selling a used car.
Total time (20-50 minutes)
To keep the exercise to 20 minutes, you will most likely not have time to allow students to answer the
integration questions before you go over them. Simply give the students the answers to some or all of the
integration section questions rather than discuss them.
When there is an odd number of students in the class, I always work with the remaining student. I believe
students will learn more by doing the exercise than by watching, even though I have an advantage knowing
both confidential sheets. I try to teach the student the power of intimidation. I ask him or her to give a price
first, and no matter what it is, I come out with a loud statement like, “Are you kidding me? That’s all you
will give me for this great car?” The students have always quickly upped the price. Then the student reads
my confidential sheet and I go over how I intimidated them and to watch out for this tactic in the future.
Recommended Approximate Time for a 30-minute period:
8:00 Procedures 1 and 2 5 minutes
8:05 Procedure 3 5 “
8:10 Procedure 4 5 “ (Most of my students finish in 5 minutes.)
8:20 Integration 3 “
8:23 Conclusion 5 “ (Times can vary greatly based on discussion.)
8:38 Application 2 “
8:40
Testing on Skill-Development Exercise 10-2
This exercise does not have an actual model to follow when negotiating. Therefore, there are no test
questions in the test bank. If you can think of a good way to test on this exercise, please contact me; I will
put your suggestion in the next edition.
Answers to the Integration Questions:
1. Which of the seven types of power (Chapter 10) did you use during the negotiations? Did
both parties believe that they got a good deal?
Information power was the most relevant power base. When students exchange confidential sheets, they
realize the power of the information. This exercise was conducted by 54 managers, and the average price
It is interesting to point out that after the sale most people were happy with the deal. However,
2. Which of the influencing tactics (Chapter 10) did you use during the negotiations?