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This negotiation involves discussing price, options, service, delivery, penalty, cancellation, warranty, terms, and arbitration. Inflation and a price of $3.65 with a 10% increase per year will be considered. COD payment terms and a 15% limit on price reduction will be discussed. Team members include Sales Manager, Recuperator, Sales Representative, Applications Engineer, Purchasing Agent, Production Engineer, and Design Engineer. Tactics for both selling and purchasing teams will be employed, including market research, raising prices, avoiding concessions, and using creativity.
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A TOUGH NEGOTIATION price optns svc delvry pnlty cancln wrnty terms arbtrn infl BLTR $3.65 all 2yr 6mos 10k 10% p/yr COD no 15%
A TOUGH NEGOTIATION price optns svc delvry pnlty cancln wrnty terms arbtrn infl BLTR $3.65 all 2yr 6mos 10k 10% p/yr COD no 15% MAV $3.05 all 3yr 3mos 75k 2% pl/2yr 4 pmts yes 10% Team 1 ……………………………………………………….. Team 2 ……………………………………………………….. Team 3 ………………………………………………………..
BOLTER ROLES Sales Manager Recuperator Profitability No arbitration clause 10% limit on price reduction Sales Representative Make the sale - bonus Applications Engineer Technical features Maintenance contract Recuperator
MAVERICK ROLES Purchasing Agent Bolter lost sales recently Delivery Stretch payments Arbitration Price Production Engineer No recuperator No service contract Labor in warranty Design Engineer Friends with sales rep Delivery crucial Recuperator - personal
SELLING TEAM TACTICS Market research at the negotiation table Break, then reconsider your strategy Raise your price Avoid concessions The mouthpiece routine Creativity Use all the time
PURCHASING TEAM TACTICS Why so high? Break, then reconsider your strategy No counter-offer Start low Use all the time Good guy/bad guy routine Creativity