The Techniques of Negotiation

A successful negotiation outcome does not generally occur though luck, but by following a clear process. The process reflects the different levels of knowledge of the subject of negotiation, various parties and the way they communicate at various stages in the negotiation. The following is an outline of steps essential to effective negotiation.
•    Prepare, prepare and prepare: Enter a negotiation without proper preparation and you’ve already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru.
•    Pay attention to timing: Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
•    Leave behind your ego: The best negotiators either don’t care or don’t show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea.
•    Ramp up your listening skills: The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiator’s oldest maxims: whoever mentions number first, loses. While that’s not always true, it’s generally better to sit tight and let the other side go first. Even if they don’t mention numbers, it gives you a chance to ask what they are thinking.
•    If you don’t ask you don’t get: Another tenet of negotiating is “Go high, or go home.” As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don’t be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
•    Anticipate Compromise: You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it’s better than you’d hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.
•    Offer and expect commitment: The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment.
•    Don’t absorb their problems: In most negotiations, you will hear all of the other side’s problems and reasons they can’t give you what you want. They want their problems to become yours, but don’t let them. Instead, deal with each as they come up and try to solve them. If their “budget” is too low, for example, may be there are other places that money could come from.
•    Close with Confirmation: At the close of any meeting- even if no final deal are struck-recap the points covered and any areas of agreement. Make sure everyone confirms. Follow up with appropriate letters or emails. Do not leave behind loose ends.

Negotiation skills for a merchandiser

Negotiation:
Negotiation is one of the important part of merchandising.

One of the most important slills a buyer and a seller must muster is the ability to negotiate. As most  high street fashion selling prices are very competitive, the greatest scope for improving profit in a product is the reduction of cost price. There are many factros that influence the final cost price of a product including delivery terms.

Negotiation is the process of communication and exchange through which the interested parties make a series of demands and compromises, it involves the trading of benefits between buyer and seller. The basic principle is to trade what is of low value to seller but of greater value to the other party (Buyer). However the aim of a negotiation should be to ensure that both parties are happy with the final outcome or agreement, otherwise one or the other will not continue to participate.

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Execution of garment export order

Garment Merchandiser is the person who collects the export order from buyer. But after receiving the export order, without wasting any time, it is very essential to prepare a time schedule for the job to be done for safe execution of the export order. The main job for the execution of an export orders are as follow-


•    Detail analysis of export (L/C)
•    Preparation of time schedule for the export (L/C)
•    Collection/ Procurement of fabric and accessories for the garment to be exported.
•    Distribution of responsibilities for the jobs and duties.
•    Make production plan
•    Inspection of the produced garment for quality, quantity, packing and other requirements of the buyer.
•    Preparation of banking and shipment formalities.
•    Continuous follow-up of progress
•    Others.


Normally the person who is engaged and given responsibility for a particular garment export orders (L/C), is called garment merchandiser. So he/she should monitor all the jobs related to execution of an export order as well as maintain a continuous liaison with the garment exporter and garment importer to inform continuous progress of the garment export order.


Progress for garment production quantity with required quality level within scheduled time is the most important and critical job of the garment merchandiser. Hence, through knowledge is essential for a garment merchandiser for successful execution for the export order. With the change of time now a days, garments quality became very important. To maintain the produced garments with required quality level, it is very essential to start from fiber, yarn, fabric, dyeing, printing, finishing, garment production, garment inspection and quality control, testing garment washing/dyeing, garment finishing, packing etc. technical affairs.


It’s a matter to mention that I will write about all technical affairs one after another. But there is no hesitation to say that if someone draws the high concentration about this topic he/she would be a successful merchandiser. 

Procurement of Garment export order

Procurement of Garment export order is a difficult job for a garment merchandiser. Normally garment export order is found from the potential garments importers called garment buyer. Anybody wants to collect garments export order. But the person who wants to collect the export order, he/she should be able to convince the buyer. When the buyer is convinced about garment production, garment quality, garment costing and garment delivery or shipment ability, then garments export order is procured by someone. To convince the buyer it is better if you can visit his/her office in abroad with your produced some sample garments and company profile. Event it will be more helpful, if you can invite and arrange your potential buyer to visit your office, factory to see the production facility, production quality, so that the buyer gets confidence about your garment export ability.


Without clear confidence among buyer and exporter from both sides, may be a risky business deal. If garment exporter can continuously deal with only two or three buyer with buyer’s satisfaction, it will be sufficient enough to run garment production and garment business smoothly round the year.

Knowledge & Skillness required for a garment Merchandiser

As I mentioned in my previous article about the duties and responsibilities of a garment merchandiser, so now it is clear that to perform successfully those duties & responsibilities, sufficient related knowledge & skillness of a merchandiser is the most necessary. To acquire those knowledge & skillness, institutional support is essential. However a brief guide about the knowledge & skillness requirement of garment merchandiser is noted out below:


•    A Merchandiser should be a smart person with fluent speaking, reading and writing ability in English Language.
•    A smart Merchandiser should be a technically sound person having clear conception about textile fiber, yarn, fabric, dyeing, printing, finishing, garment manufacturing, garment washing, garment dyeing, Textile testing, Textile product & raw materials inspection and quality control.
•    Should have clear knowledge about procurement/collection of an export order (export L/C).
•    A Merchandiser should have the ability to plan and execute the time schedule.
•    A smart Merchandiser should have the ability to make liaison with buyer & production people.
•    A Merchandiser should have clear knowledge about garment shipment formalities.
•    Should have clear knowledge about banking and commercial formalities.
•    Should have clear knowledge about sourcing of raw materials
•    Should have clear knowledge about garment costing and raw materials consumption calculation.
•    Should have self motivated and hard working ability
•    And finally, should be able to maintain commitment

The duties and responsibilities of a Garment Merchandiser

Garment Merchandising position is a smart position in a RMG industry. But it remains true that it contains a lot of risks.  To handle all items related with Garment Merchandising is so hard. But if someone (Merchandiser) draws the high concentration on their job then he/she will become a successful merchandiser.

Anyway, Now I would like to write the mail role of a Merchandiser:
The main role of a garment Merchandiser is to collect Garment export order (Export L/C). Then produce the garments and export. If a Merchandiser can the all operation successfully then his/her garment owner as well as he/she will be benefited. But it’s a matter of true that to perform those above functions successfully needs huge knowledge and tremendous effort for a Merchandiser.

Duties and Responsibilities of Merchandiser:
The major duties and responsibilities of a garment merchandiser are as below-


•    To procure or collect a garment export order or export L/C
•    To estimate time schedule for the export of those garments as per L/C
•    To arrange all the materials needed for the garments to manufacture and export
•    To monitor collection of raw materials as per time schedule
•    To monitor the quantity and quality of the collected raw materials
•    To select garment factory if needed
•    To monitor garment production progress as per time schedule
•    To monitor desired/imposed quality level of the produced garment
•    To monitor garment packing instructions
•    To monitor banking and shipment arrangements as per time schedule
•    To maintain continuous liaison with the buyer or his/her representative if needed
•    To maintain continuous liaison with his/her controlling authorities
•    To follow up payment collection against garments export as  per schedule
•    And finally, To earn profit through garment export execution 

The Scenario of RMG sector in Bangladesh

There are a lot of Countries in this world those are produced garments in the garments factories in an industrial basis for all people of those specific country.  Among them Bangladesh is one of them which is producing garments and exporting in the world market. In Bangladesh the history of RMG sector is began by Riaz Garments in 1970 at old Dhaka. At present, there are about 4800 Garment factories in Bangladesh. It’s a point to note that the growth of garments factories started around in the decade of 80’s. But it’s a matter of sorrow that around in the decade of 80 garment production and export business was almost unknown us. That’s why we have been faced a lot items. Besides foreign currency earning was started in 1980-81 with starting figure US $ 3.24 million which was not sufficient in the percentage of total currency earnings. Meanwhile, Bangladesh exported RMG products worth $3.03 billion in the first three months (July-September) of the current fiscal year compared with $3.35 billion in the same period last year. The target for knitwear export was fixed at $7.29 billion in fiscal 2009-10 against the achievement at $6.429 billion in 2008-09. In case of woven, the export target was fixed at $6.68 billion for the current fiscal year against $5.91 billion earned in 2008-09, the EPB said. (Source: Daily Star, Tuesday 09, 2010).

Now RMG Sector of Bangladesh is producing and exporting a lot of items such as- Shirt, Trouser, Jacket, Sportswear, T-Shirt, Polo Shirt, Ladies wear, Sweater, Socks, hat etc. which are exported in USA, Canada, EEC, Japan, Australia, Middle-East and many other countries of the world. All the Buyers of the above countries are coming in Bangladesh. Now Bangladesh has become one of the important and competitive garments exporting country in the world Market. Say Why???? There is only one reason to invest in this country’s garments sector. That is the cheapest labor cost, which is the most important advantage for the garments producers and exporters of this country.

You know? Bangladesh is the country which has a lot of prospects to develop. Because, here CM cost is minimized by low labor cost. Here, Huge number of people both man and woman are working for both forward linkage and backward linkage. But the needed of skilled and educated manpower is increased day by day. It’s a matter of sorrow that Bangladesh has not sufficient with skilled and educated manpower. It will be a great challenge for Bangladesh to survive as an exporter in the world market with those types of manpower. But it remains true that the growth of garment industry in Bangladesh is satisfactory. 

To be continued

What is Merchandising and Garment Merchandising?

Meaning of Merchandising.................................................................................................................

The word "Merchandising" means buying, producing and selling of any goods or products or services for the local or international market. If we combine this two English term "Garment Merchandising" then the meaning of "Garment Merchandising" becomes like the following definition-

"Garment Merchandising" is a recipe with huge contents. It means all the activities such as getting export order of any garment of any particular design for a specific quantity, analysis the garments to produce, production of those quantity of the garments with specific concentration to standard quality lavel which is given by the Buyer or Consumer, production sheduling and finally exporting the garments within fixed time frame, is known as "Garments Merchadising".

So, from the above definition of "Garment Merchandising" it can assumed clearly that all the activities which have already mentioned the above is not so easy to handle. But all the above activities is done by a smart and energetic person who is known as a "Garment Merchandiser". The "The Garment Merchandiser" is one of the key person of RMG sector.

It can be mentioned to follow the following link to know a lot about merchandising-

From this site one can know-merchandising - definition of merchandising from BusinessDictionary.com: Activities aimed at quick retail sale of goods using bundling, display techniques, ...

www.businessdictionary.com/definition/merchandising

From this below site one can know something and answer something about merchandising.
www.answers.com/topic/merchandising

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Will be continue.............................................