Com 390 Letter Of Business Agreement
COMM 390
Letter Of Agreement Activity - Seller
The purpose of this activity is to explore how to negotiate and write business agreements. You’ll begin by negotiating the sale of a large industrial printing press. Then you’ll each write a Letter of Agreement setting out the terms you’ve agreed on.
Text
Don’t share the details of your scenario with the buyer—this is valuable business information that could be used against you. The scenario doesn’t include every detail, so use your business knowledge and common sense to fill in the gaps. Negotiate the items listed below and get the best deal you can.
If you can’t reach an agreement, write up the Letter of Agreement setting out the terms you’ve
agreed …show more content…
Write from your point of view. You may also want to add other terms to clarify issues you did not discuss or to otherwise protect your business interests. It’s never too late to get the best deal you can! At the bottom, include two sign-off blocks so you can both sign the agreement.
Terms to Negotiate
Purchase price (excluding applicable taxes)
Delivery time (usually weeks or months)
Late delivery penalty (% of purchase price per month if the seller delivers late)
Order cancellation penalty (usually a fixed amount if the buyer cancels the order)
Warranty period (months or years the printer is guaranteed)
Delivery and installation cost (usually a fixed amount)
Training (assume 10 machine operators will need a week of training)
Payment terms (% up front, % on installation, or other terms)
Any other terms you think are relevant or would help you get the deal you want
Print your letter and bring to class for review with your negotiating partner. Good luck and get the best deal you can!
Contact Information
Buyer
Robert Mason
Operations Manager
Jones Printing Inc.
McCormack …show more content…
Because of your higher production costs, the company’s stock price has plunged over the last few months, putting the jobs of the management team at risk.
Luckily, one of your new printers, the MagPro 6900, has proven to be very popular. As a result, you now have orders flooding in—in fact, so many orders that your manufacturing division can’t keep up. You are back ordered more than 6 months. The company’s inability to capitalize on the success of this printer has been a major stumbling block to the recovery of Komodo’s stock price. While the 6900 has all the bells and whistles that the printing industry seems to want, it costs a lot to manufacture, and with your higher wage costs, it’s at the top end of the price range for comparable printers. Your boss, the Vice-President of Sales, told you that unless you can sell them for at least $650,000 each, Komodo will lose money. Your job is on the line, so you need to show your boss that you are worth the high salary you just negotiated (a lot more than you got in your last job as sales manager of an auto dealership). So even though you know Komodo can’t deliver new presses for more than six months, you need to continue to get new sales,
Letter Of Agreement Activity - Seller
The purpose of this activity is to explore how to negotiate and write business agreements. You’ll begin by negotiating the sale of a large industrial printing press. Then you’ll each write a Letter of Agreement setting out the terms you’ve agreed on.
Text
Don’t share the details of your scenario with the buyer—this is valuable business information that could be used against you. The scenario doesn’t include every detail, so use your business knowledge and common sense to fill in the gaps. Negotiate the items listed below and get the best deal you can.
If you can’t reach an agreement, write up the Letter of Agreement setting out the terms you’ve
agreed …show more content…
Write from your point of view. You may also want to add other terms to clarify issues you did not discuss or to otherwise protect your business interests. It’s never too late to get the best deal you can! At the bottom, include two sign-off blocks so you can both sign the agreement.
Terms to Negotiate
Purchase price (excluding applicable taxes)
Delivery time (usually weeks or months)
Late delivery penalty (% of purchase price per month if the seller delivers late)
Order cancellation penalty (usually a fixed amount if the buyer cancels the order)
Warranty period (months or years the printer is guaranteed)
Delivery and installation cost (usually a fixed amount)
Training (assume 10 machine operators will need a week of training)
Payment terms (% up front, % on installation, or other terms)
Any other terms you think are relevant or would help you get the deal you want
Print your letter and bring to class for review with your negotiating partner. Good luck and get the best deal you can!
Contact Information
Buyer
Robert Mason
Operations Manager
Jones Printing Inc.
McCormack …show more content…
Because of your higher production costs, the company’s stock price has plunged over the last few months, putting the jobs of the management team at risk.
Luckily, one of your new printers, the MagPro 6900, has proven to be very popular. As a result, you now have orders flooding in—in fact, so many orders that your manufacturing division can’t keep up. You are back ordered more than 6 months. The company’s inability to capitalize on the success of this printer has been a major stumbling block to the recovery of Komodo’s stock price. While the 6900 has all the bells and whistles that the printing industry seems to want, it costs a lot to manufacture, and with your higher wage costs, it’s at the top end of the price range for comparable printers. Your boss, the Vice-President of Sales, told you that unless you can sell them for at least $650,000 each, Komodo will lose money. Your job is on the line, so you need to show your boss that you are worth the high salary you just negotiated (a lot more than you got in your last job as sales manager of an auto dealership). So even though you know Komodo can’t deliver new presses for more than six months, you need to continue to get new sales,