EXCALIBUR ENGINE PARTS – NEGOTIATION PLAN
1. What is your BATNA (Best Alternative to a Negotiated Agreement)?
Sell the pistons to Hanks Super Monster Tractor for $300 / piston
2. Why it is the “best” alternative?
* No other viable alternative available if we decided to go without major losses.
* Better than not selling at all considering the poor demand for specialized pistons in the market
3. How acceptable your BATNA is to you?
This is a very poor BATNA to sell the pistons at a significant loss
4. What are the implications of this acceptability for the way you approach this negotiation?
* I’ll try to cut the deal with Knight Engines even if requires to offer some ...view middle of the document...
7. Resistance point(s) : Price less than $300/piston
8. Target Points:
1. $ 560/piston + 10% insurance + Excalibur name on Knights Engine chassis
2. To sell 10000 pistons
9. Opening offer: $ 600/piston + 6% Rush Fee + 10% Insurance + Excalibur name on the Engine chassis
Little higher than our TP and with the negotiation its highly likely to close the deal with Excalibur’s goals achieved.
11. Do you prefer to make the first offer or attempt to get the other party to make the first offer? Explain.
Yes I would prefer to make the first offer because we exactly know how many issues we are there in the negotiation to be addressed and we are sure of our Target Points.
12. Analyze the Other Party/Parties.
In your estimation, what are they generally trying to accomplish here?
8000 quality pistons within 2 weeks to fulfill an order from government. So reputation is important to them to be able to de repetitive business.
13. What are their issues?
a. Dead line
b. Quality and any price involved for insurance
14. What are their interests?
a. Sales price/ piston – Probably very...