Certified Professional Public Buyer (CPPB) Practice Test

What does the phrase "nickel and dime" refer to in negotiation?

1. Offering a single low price to close a deal.

2. Seeking out significant concessions from the other side.

3. Neglecting small details in the agreement.

4. Wanting to negotiate each and every point.

The correct answer is: Wanting to negotiate each and every point.

The phrase "nickel and dime" in negotiation refers to the practice of wanting to negotiate each and every point, often focusing on minor details or small amounts rather than on the larger, more significant aspects of the deal. This approach can lead to protracted negotiations and can be perceived as overly frugal or tedious. It can also create friction between negotiating parties, as one side may feel that the other is being overly meticulous to the detriment of the overall goal of reaching an agreement. This mentality can slow down the negotiation process and distract from larger, more impactful concessions and agreements that could benefit both sides. In contrast, offering a single low price emphasizes a more broad-strokes approach rather than delving into minutiae. Seeking significant concessions focuses on major changes that could benefit one side more than the other, while neglecting small details doesn’t indicate a willingness to negotiate thoroughly through every point. Instead, "nickel and dime" embodies a relentless pursuit of negotiating the smallest facets of a deal, which can lead to an unproductive and contentious atmosphere in negotiations.