Explain what Benjamin Franklin means by “necessity never made a good bargain.” Explain why is this true?

To begin with, it should be stated that the key rule of any negotiation process is never to show interest towards the negotiated subject. Originally, if an opponent sees the interestedness, the only conclusion that could be made is that the object of the bargain or negotiations is of high importance for a person, and this means that the price of the subject may be increased.

Benjamin Franklin, as a talented politician, clearly realized the essence of this expression, as the political or diplomatic negotiations often remind bargaining, nevertheless, the prices of the subjects are essentially higher, and the consequences of the successful or unsuccessful bargain are more serious.

The business aspect of this consideration is covered in the notion that business companies never reveal their interest towards the production of the other companies, for companionship, alliance, any agreement, etc. The fact is that bargain and necessity are incompatible. Thus, talented negotiators never show their interest. The brightest example of such behavior is the actions by Urban Outfitters Inc. As it is stated in the case study, Urban Outfitters Inc, like lots of other companies, wished to make their financial resources work and benefit by investing the essential amount in liquid assets that offered an attractive rate of return.

Originally, given the mindset of many financial managers of the past few years, this could have resulted in disaster. The booming financial markets of the early twenty-first century lured many financial managers into overconfidence, resulting in overly risky financial decisions. While the other companies invested heavily in a series of risky instruments, this caused serious consequences for them, while Urban Outfitters Inc managed to save its investment resources and benefit from the other competitors.

This example reveals that necessity can violate not only during negotiations: attempt to overcome the consequences of negative tendencies may cause groundless decisions and actions, which will inevitably cause disaster.

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Academic.Tips. 2022. "Explain what Benjamin Franklin means by “necessity never made a good bargain.” Explain why is this true?" October 26, 2022. https://academic.tips/question/explain-what-benjamin-franklin-means-by-necessity-never-made-a-good-bargain-explain-why-is-this-true/.

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Academic.Tips. "Explain what Benjamin Franklin means by “necessity never made a good bargain.” Explain why is this true?" October 26, 2022. https://academic.tips/question/explain-what-benjamin-franklin-means-by-necessity-never-made-a-good-bargain-explain-why-is-this-true/.

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