Anderson Coffee Negotiation

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Summary of Negotiation 1. The participants in the negotiation are Pat Hammer, East Coast Vice President of Sales for Anderson Coffee and Sandy Grant, Food & Beverage Director for the Statler Hotel in Ithaca, New York. 2. I am Pat Hammer, currently in the role as the East Coast Vice President of Sales for Anderson Coffee, and have been invited to meet with Sandy Grant, the Food and Beverage Director for the Statler Hotel in Ithaca, New York. Sandy Grant had called and shown a keen interest in our product and asked for bids for a year contract from July to June. We returned the request with a bid and promotional packet. Grant proceeded with the invitation to meet for a negotiation. Due to various reasons, such as unpredictable weather conditions…show more content…
The Best Alternative to the Negotiated Agreement in this negotiation is to walk away from this deal and sell to our current customers at $2.75/lb or $4.20/lb. We have other customers and can sell to most restaurants at $4.20/lb. Our bid price shows a reasonable discount. 2. The target price for the negotiation is $3.76/lb. This price is set between the bid/asking price of $3.94/lb that included the delivery cost of $.60/lb and our reservation price of $3.15/lb. This is the price at which we hope to conclude our negotiation. 3. The reservation price is $3.15/lb, this is the lowest price that we will sell to Statler for the deal. This price represents a loss of about $0.20/lb, but this loss is approximately an $1,100 investment in publicity. This is the price that the CEO of Anderson Coffee, had set as the lowest amount we would accept an offer for from Statler Hotel. Problems, Conflict Strategies & Planning 1. A potential problem, in this case, is if Statler is not willing to budge on our reservation point of $3.15/lb. Statler's reservation point may be below our reservation point, and we will be in a negative bargaining range. This negative bargaining range may lead to an impasse in the negotiation. Further, we also need to sell 5,400 lbs and we included the price of shipping in the price, however, if there is a possibility of this quantity decreasing we will lose some of our profit that we had projected when calculating the price of the…show more content…
I believe that the other party will try to compete for the best price using the competing strategy on the Dual Concerns Model. They will want to get the product as quickly as possible and make it appear that they have several BATNAs. Statler may be focused on winning the negotiation and not necessarily the long-term relationship involved compared to the collaborative strategy used by Anderson. This will lead to conflict as they will be less willing to concede in the negotiation process and follow a more distributive bargaining approach. Their target point and resistance points will be set and may not be willing to go beyond or shift

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