Bakra Beverages Negotiation Case

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(Bakra Sales Director). Partner.

The negotiation was fast. BebsiCo gave me a price for a yearly contract of $4 M and I agreed. We agreed to negotiate again next year after seeing the percentage of the target market we have reached. The deal was fair, and created value for me (reputation and possibility to obtain financing). I also noticed them about the availability to distribute in the largest chain-restaurant in the country (low cost for us, high value for them).

This was an example of a claiming value negotiation, where both parties tried to achieve an individual gain (the best price) and only the price being discussed. However, it has integrative issues as well, because it is important to build a long-term relationship to keep distributing in the future. My BATNA was bankruptcy, and my reservation point very low, so any deal for me would be good. It was important to try to get a lot of information from the other party before you negotiate the price, because you may find out something. The opening party discussing the price shows a lot. So I tried to give her all the information I had (about my experience, my contacts) and ask her about things such as “why don´t you want to work with Kabir” or “why are you interested in working with us”. Based on our answers, it was clear that we both had the same interest: succeed together.

I learned from this negotiation that in claiming value negotiation, there are ways to include creating value issues. We could have negotiated including “if you do this, then you get that”. I also learned that it is important to know the reference points before you negotiate to get a fair deal. Parties may have assymetric information, but sharing information helps achieving your interest.
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