Accounting

W505, Spring 2016

Negotiation Planning Sheet

Name: Shobhit Khandelwal

Negotiation: Knight Engines - Excalibur Engine Parts

Role: Excalibur engine parts

1-What are my interests in this negotiation?

My interests are to sell the pistons at the best price and best terms with regard to rush fee and guarantee costs. Also, given that I already have 10,000 pistons, I want to sell as many pistons profitably as possible.

2-What is the bargaining mix in this negotiation?

The bargaining mix is the price per piston, number of piston, rush fee, guarantee fee and terms of advertising the Excalibur brand on the Knight engine.

3-What is my BATNA in this negotiation?

My BATNA is to sell the pistons to Hank's Super Monster Tractors Inc. for $100 per piston

4-What will my opening bid be?  What is my rationale for the opening bid?

My opening bid is for $675 per piston. This includes the 10% rush fee and 10% guarantee fee over the list price of $560. I would also like to secure the branding terms that state that I can advertise my brand on the Knight engine.

5-What are my goals in this negotiation?

My goals in the negotiation is to get a price as close to the starting bid, secure the full 5% for rush fee and 10% for guarantee fee. I want to sell 8000 pistons at least $600. Also, I want to be able to advertise my brand on the Knight engine. This allows me to demonstrate the government the quality of our products and it might work to my advantage the next time the government requests submissions for the supply of engine parts. Also, I don’t have to dispose the 10,000 pistons I already produced for a loss.