Detailed study and thorough advance preparation are highly essential in 

 successful negotiations. No salesman, not even the seasoned veteran, 

 endeavors to oresent his proposition until he has studied the most fre- 

 quently encountered objections to his product and has developed a plan 

 for meeting thorn. Unexpected -objections work havoc with any case pre- 

 sentation. All weak points .and objections to the proposed presentation 

 should bo anticipated and reviewed so that a strong defense can be or- 

 ganized. Likewise, the negotiators for each side should anticipate most 

 of the strong points of the other' side and be prepared to meet them. This, 

 of course, requires adequate knowledge and interpretation of all important 

 economic facts and conditions surrounding the industry. 



Information Needed 



A most important requisite for efficient and sound handling of negotia- 

 tions is economic information of a typo which allows a thorough analysis 

 of current problems in the industry and in the market. The more complete 

 and accurate such information, the closer the negotiations can be guided 

 by intelligent decisions rather than blind guesses, If each side has the 

 facts and a sincere desire to bargain in good faith, it is much more 

 likely that negotiations will move smoothly and that equitable results 

 will be achieved. The dote?"mination of an equilibrium price by collective 

 bargaining, of course, assumes that each side has full knowledge of the 

 market and relatively equal bargaining ability and techniques in negoti- 

 ations. To too e::tont that one side has mare and Letter information 

 than the other and uses it intelligent ly, the greater will be its bar- 

 gaining power, 



bargaining power is defendant not only upon strength which comes from 

 control of adequate volume, but also upon ability to bargain effectively. 

 Ability is attained through a knowledge oi market facts, proficiency in 

 evaluating them, and skill.fulness in convincing others to make transactions. 

 It is gained through study and _ocporienca. It is an ability highly re- 

 garded in a competitive economy. 



In general, to be effective in bargaining, each side needs to knows The 

 economic conditions in the market at all timos, what the' results of 

 existing prices and ether conditions a -e likely to be, what forces com- 

 bined to bring about exisiting conditions, and how their organization 

 may anticipate and modify the effect of those forces. 



More specifically, each side will need accurate and current information 

 on: 



1. Factors affecting supply of the product,- 



2. Factors affecting demand for the product. 



3. Trends in general economic and business conditions. 

 4.. Strengths, weaknesses and attitudes oi the other 



party. 

 5. Other facts about the industry including attitudes of 

 growers, processors, and the public. 



• 16- 



