PROJ598 Negotiation Exercise 2 (1)

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Negotiation Exercise By Name PROJ598 Week 7 Prof. Nizami October 18, 2013

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Transcript of PROJ598 Negotiation Exercise 2 (1)

Negotiation ExerciseBy NamePROJ598 Week 7Prof. NizamiOctober 18, 2013

One of the worst negotiation experiences Ive ever been involved in was trying to have my home security system changed from Brinks over to ADT. In 2007, I was fortunate to purchase my first home in Jackson, NJ. Though my home was in a very prominent neighborhood with heavy police presence, I still desired to have a home security system. Often when a new family moves into an area, they become a prime target for burglary or home invasions. Upon closing on the home, the seller indicated that the home was equipped with a full security system covering all doors, windows, and any other points of entry. We were extremely happy with this, as it was eliminating a headache we truly didnt need. It took about a full 2 weeks to get everything moved in and settled and after about a month, we were completely happy with our new home. However, on the morning of August 3rd, 2007, things took a turn for the worst. As my dad exited the home at approximately 7:45 am, intruders were nearby watching closely. At about 8:02 am, I received a call from DeKalb County Police Department asking me to verify the password on the alarm system. I immediately knew my home had been compromised as I could hear the alarm sounding in the background. Almost simultaneously, Brinks was beeping in on my other line. I informed the officer that I would only supply that information to Brinks and that I was on my way to the home. I briefly spoke with the Brinks operator, who was able to disarm the system and shut down the alarm. As I entered my driveway, I noticed that my front door was wide open, however it was not damaged. As I approached the officer, I urgently asked how they gained entry. The officer stated that the intruders had entered the home thru a back kitchen window and simply unlocked the front door and walked out. I was visibly upset, but more-so confused as Brinks had indicated the entry point as the front door. I couldnt understand why the alarm didnt sound upon the glass being broken. Well, after some investigation, we learned that NONE of the windows in the home had sensors and were not protected. Only the front and rear doors had sensors. I was furious, as my dad could have possibly been there without the security we had been assured we had. I immediately requested Brinks come out and install the sensors on the windows and I demanded that they have my window replaced due to their negligence. Well, to my surprise, Brinks informed me that the contract for services on the home were simply on the front and rear door. They indicated that the realtor only added the service as a selling tool for the home. Much to my chagrin, Brinks informed me that I was actually lucky, as the service was set to expire the next week unless I chose to renew the contract. I was furious. Not only did we not have the security we were told wed have, but it was actually about to expire. With this being my first home purchase, obviously there were some things I didnt know. So, with the advice of my father and a few close friends, I decided to seek the services of ADT. However, there was one MAJOR problem. Brinks had a lock code on the wall panels and refused to allow ADT to install their system. They indicated that their contract had not expired yet and that they would impose a disconnect fee if I chose to go with another service provider. They also wanted to impose a restock fee for the panels. I couldnt believe it. I felt like I was a prisoner in my own home. I contacted the area manager for Brinks to negotiate the remaining days on the contract as I did not want to continue with their service. He indicated to me that they had a contract for service and if I wanted to break it, I would be charged $250. I told him there was NO WAY I was paying them $250 to remove the panels when there was less than a week remaining on the contract. Obviously, the easy way out would have to just let the panels stay for a few more days and then have them removed. However, the peace of mind that would alter my home was not worth it. My dad was at the point where he wanted to live in a hotel until the contract was up, which would have cost more money. After hours of conversation and having to replace the window out of my own pocket, and getting my personal attorney involved, we were able to reach an agreement. Because the seller indicated that the home was equipped with a full security system that was to cover all entry points, they paid to have the Brinks system removed. My attorney cited that the seller used misleading wording as a part of their selling point and could possibly be held for breach of contract. We were also able to get reimbursed for the cost of replacing the window. We were able to contact ADT and have a system to our liking installed the same day and it is still operating properly 6 years later. The main lesson I learned here was to do my own research and not depend on someone else to negotiate for me. Knowing the other parties involved is detrimental. Knowing the power you have as a buyer is crucial. Understanding the terms and conditions before signing the deal would have stopped this mishap right in its tracks. No, it wouldnt have stopped the burglary but it definitely would have made my life a little easier. Knowing what I was entitled to and what I was responsible for would have made a huge difference. Honestly, ADT is really the only one that won out here. Yes, I got the system I wanted, but I had to pay a hidden cost I didnt anticipate. Yes, Brinks got their fee, but they also lost a customer. And the seller, not only paid the fess associated with removing the old system, they also paid for the window replacement and they somewhat strained their relationship with me. I felt as if they were working in my best interest, when all along they were hiding things. Thats a quick way to destroy trust when trying to build a relationship. It will also hinder any future business I would have conducted with them as well as influence me to not recommend their services. The knowledge I have gained from this course will definitely pay huge dividends in the future and would have greatly assisted me in this situation. My negotiation skills are much stronger now as I am aware of the types of approaches to take in different areas of negotiation. Knowing what you want, how to get it, and what you are willing to pay for it makes the negotiation process much easier. These 3 concepts will stick with me anytime Im negotiating, regardless the size of the objective.