NEGOTIATION PLANNING DOCUMENT Negotiation: Role: Viking Sandy Wood
My overall goal: Maximize my sale price for the syndication of Ultra Rangers cartoon. Since financing costs and re-run costs (up to 8 runs/episode) is quite costly, I will feed those costs into my total sale price. Additionally, I want to build a sustainable relationship with WCHI so that I can negotiate future deals. Therefore, starting this business relationship on good terms is important for me. What are the issues at stake (in order of importance): 1. Convince Pat Olafson to make the oak bill payment of $700,000 in 15 days 2. Convince Pat Olafson to make the remainder of the lumber bill payment, $250,000 in 30 days 3. Convince Pat Olafson not to recall the $200,000 loan 4. Convince Pat Olafson to decrease the monthly building rent to $4,000 5. Convince Pat Olafson to increase the $7,000/unit payment he’s going to make to $9,500 What is my BATNA? Reservation Price? Target? BATNA: $375,000 owed) Reservation Price: $910,000 to be paid by Pat Olafson ($700,000 to be paid in 15 days, remaining $250,000 to be paid in 30 days) and get guarantee from him that the $200,000 loan will not be called back. Target: $950,000 to be paid by Pat Olafson (ideally, whole amount in 15 days. Or, $700,000 to be paid in 15 days, remaining $250,000 to be paid in 30 days), get guarantee from him that the $200,000 loan will not be called back and my rent will be lowered to $4,000. What are my sources of power? 1) Pat Olafson gave his secretary Fawn authority to make decisions, saying “Fawn can handle any details that come up”. I have to explain Pat that when he was away and $425,000 (net proceeds from immediate sale of the house. $800,000 -
unreachable, I dealt with Fawn for business related issues. I explained her the details of the oak deal and she did not object to it. Since Pat informed me before that Fawn will have full authority during his absence, I made the lumber deal based on her confirmation. 2) If Pat...
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