Texoil Negotiation

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Negotiation Learning Journal

1. Facts: Provide a brief overview of key events (How was the time allocated? Offers: opening-offer and counter-offer, as well as progression of offers? How was information exchanged? Were there pivotal turning points?) Since I’m the one who is selling the service station, so I suggest that I make the first offer. First offer I made was $1,000,000 because my target is $800,000 and also I told her the reasons why I think the station is worth that amount of money. Yulin said that’s impossible because she didn’t have so much money because she is just the representative of the oil company and she had budget. I believed her and make a $100,000 concession. And she kept on saying she hadn’t had that much money for me. So I ask her the price she can give me. She said she can give me $450,000 at most which even was nearly 100,000 dollars lower than my reservation point. Of course I said no. Then negotiation came into a deadlock. But the pivotal turning point came that Yulin asked me why I wanted to sell the station if it was so good. I said I need money to start my dream trip around the world. Then Yulin asked me if I can reduce the price under the condition that she offered a job for me after I come back from the trip. I said if I didn’t collect enough money, I even cannot start my trip, not to mention the job stuff. Then another pivotal turning point came: we realized that this case had a negative bargaining zone which is different from the ones before. So we decided to give our reservation price and also see if there was something except the cash that she can give me. So she was willing to give me $450,000 cash with a $50,000 per year job after I come back. But even my reservation price minus the money that I may need after coming back without job was $488,000 which is more than $45,000. So I ask her if she can give me some extra benefits to me or give me some other money in advance because I really need this trip. So she...
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