Negotiation Planning Worksheet
What type of agreement do you hope to accomplish through the negotiation? A win-win solution would be best for both parties!
What would you consider to be the best result?
As Senior Sales Person for Jones Stamping, it would be great to come to an agreement of at least $30.25 per piece, with altered packing specifications to satisfy our operations manager.
What must you have?
a) A clear definition of the issue, with a good knowledge of where I want to be at the end of the negotiation, along with my limits and alternatives is mandatory. b) A combined list of issues assembled, otherwise known as the bargaining mix and is done by determining which issues are more important than others, and which are linked or separate from each other. c) Definition of key interests from both sides is also important because it will show critical values, needs and principles that we may not have seen without this step.
What would you like to have?
a) Expected outcomes
b) Past relationship history or knowledge about the other side c) Specific tradeoffs or concessions
What alternatives do you have if you cannot come to an agreement with your negotiation?
a) Choose to go for the other companies’ offer and not work with Harris Production at all; therefore losing the opportunity for a long-term relationship.
b) Use concessions or trade-offs such as offering Jones Stamping knowledge of the robotic packing strategies and offer a well-drawn out plan for Harris Production to persuade them.
c) We can walk away from the negotiation.
Which of the above alternatives would be your BATNA?
I think my best alternative would be the other company by far, but only if Harris Production is not willing to lower their offer.
Identify any ways that you might be able to improve your BATNA? Bring in third-party partners, be creative with your planning or use experts.
What is your reservation price? (Lowest amount that you can consider) * If Harris Production agreed on 30 day term our reservation price would be = 25,000/11.01= $2270.66
* If Harris Production agreed on 60 day term our reservation price would be = 100,000/11.01 = $9082.65
* If Harris Production agreed on 45 day term our reservation price would be = 36,987/11.01 = $3359.40
What will be your opening offer?
60 day term for $11,000 and we will manual pack the boxes (after we are forced to expand the plant a tiny bit) What is your goal?
We would really be satisfied with a 45 day term and a robotic packaging system, which we will gladly input ourselves if allowed for $9500, including training for all levels of staff. Or we would agree on manual if that is really a necessity; however we were planning on offering a special quality assurance employee/employees that could potentially oversee the activities of the line and make sure it is running efficiently with no errors for $10,500.
List the issues and/or terms that you have to cover?
* Entering in a deal with Harris Production would mean displacing a current customer. * Loss of the steady income we receive from this client. * Results in decreased labor force because of the loss. * May even hurt our reputation for a short while.
* Potential to make up the losses if we signed Harris Production. * Reputable company
* More money if we attain stay firmly above our reservation price * Better reputation for us if future clients see Harris Productions items on our lines. * We prefer to use robotics over manual
* we could pay a QA Technician
Harris wants manual
* Offer them the comfort of knowing we have quality assurance techs at each line
Identify different package deals that would be equal in your eyes? * Robotic system for packing + lower price for them
* Manual packing + higher price for us
Both of the above would be...
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