A team from SalesForYou is looking to purchase widgets to resell directly to customers. You are the leader of the team from Ally Wholesale and interested in negotiating an offer to sell SalesForYou the widgets at a wholesale cost.
Part 1: Preparation and Planning
You know that Ally Wholesale will be going up against All For the People, Ltd, who is likely to outbid you on price. You research, as best you can, the price and quantity All For the People, Ltd is willing to come to the table with. You also know, from your earlier research, that SalesForYou is a company that values quality and if they are going to say no to All For the People, Ltd., it will be because they have a reputation for skimping on quality. Your company produces the better, but more expensive, widget.
Armed with this information, prepare a one-page proposal.
Part 2: Definition of Ground Rules
SalesForYou, as your customer, has let you know that they expect widgets to be manufactured and delivered in the first quarter of the following year. They would like to sign with a 30% deposit. Your company usually requires 50% down, but you counter with 35%, provided you have a signed contract before the end of the year, which is approaching quickly. You offer SalesForYour your proposal. SalesForYou does not share All For the People’s offer.
- Establish the ground rules.
Who will do the negotiating?
Where will the negotiation take place?
Will there be time constraints placed on this negotiation process?
Will there be any limits to the negotiation?
If an agreement cannot be reached, will there be any specific process to handle that?
- Part 3: Collaboration
- Share the proposal and ground rules with your classmate in your Canvas group Files area with whom you are paired.
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