Priority of issues: D Sale of 10000 units to pistons which would otherwise have to be sold at $100 0 rice to be more than SASS(excluding rush fee and insurance) and we could try till $650 (including rush fee and insurance) O Advertising our product for attracting more customers in the long run Underlying interest: CITY minimize the loss caused due to the Swiss deal 3 To establish a long term relationship with Knights Engine 0 To increase the company’s revenue and retain the shareholders Goals: Tangible: TO sell 8,000 pistons (What Knight needed) for $650 (desired price * insurance) and want the Knights to indicate on the chassis that their engines were fitted by us (Caliber Engines) ay this we are trying to maximize profits o $650 and minimizing loss by selling 8000 out of 10000 units produced for the government of Switzerland.
Intangible: We will try to establish both a good relationship and a reputation for fair deals, so that future business can develop, Walkway points and BATAAN: Walkway point: We would walk away from the deal if the price drops below $480 and if they refuse to indicate on the chassis that their engines were fitted by us (Caliber Engines) BATAAN: To sell more pieces at a little lesser cost thus reducing the average cost per piece. Negotiate the branding in exchange of the rush fee or the insurance cost. One Of the most important parts Of the planning process is to anticipate what your opponent will do, and along those lines felt it was essential to determine What my opponent would consider a successful agreement.
In other words, finding out the criteria upon which he would be evaluated could potentially uncover an opportunity to align our incentives and achieve a mutually beneficial solution. Strategy: We would surely follow an active engagement strategy First start with a competitive negotiation because we assume that price is almost certain to be a high priority for both parties. Then based on how it goes we are more than happy to get into a collaborative negotiation with the Knights as we are looking at a long term relationship. Call would first propose $560 4 rush fee, J Then tell them about the insurance and how investing in insurance would help them increase the guarantee of each unit being of best quality as against 4-5% of bad units. C calculated the highest price to be $650 with the rush fee and insurance included.
Thus this would be the best price to get for the pistons. II The lowest price that I hoped to achieve was the market price of $560, but would be ailing to go lower if needed since the alternative was to get $1 CO but try my best to not go below $480 as that is the production cost. 0 would go down on the rush fee Or insurance fee in exchange Of Caliber branding. The last hurdle would be to convince them to buy from Caliber instead of a cheaper competitor Who would take longer than wanted to get the pistons ready. By taking the higher price, they would not only get the quality that they desired and they would also receive the products on time so that her company would not look bad for being late.
