Class 12 Negotiation

Class 12 Negotiation - Negotiation Ben Sopranzetti...

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Negotiation Ben Sopranzetti
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Negotiations Genius, Bantam Negotiations Fight over exclusivity Client negotiating the purchase of an ingredient from a small European supplier. Agreed on a price of $18 per pound for a million pounds per year Problem over exclusivity – deal breaker US firm sweetened the deal with guaranteed minimum orders and a higher price per pound Supplier still said no They brought in an outside negotiator who made no substantive concessions. He solved the problem in less than ten minutes. How?
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Negotiations Genius, Bantam Negotiations A last minute demand Construction company is negotiating a deal where the firm builds midsized office building for a customer After months of negotiating had concluded, but before the contract was signed, they buyer imposed a new and costly demand Buyer wanted a clause that included huge penalties if the project was delayed by more than a month Seller could either accept the demand and seal the deal. Reject the demand and ruin the deal. Or, negotiate to reduce the penalties. Instead, the seller negotiated to INCREASE the penalty if he was delayed
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Negotiations Genius, Bantam Negotiations A Campaign Catastrophe 1912. Teddy Roosevelt was campaigning for a third term Three million copies of Roosevelt’s photo was printed for brochure. The photographer had not been asked for permission to use the photo Copyright law allowed the photographer to ask $1 per picture: ouch! $3 million then is like $60 million now. Serious money The alternative is to reprint the brochures – costly delays Or… negotiate a lower price The photographer holds all the cards
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Negotiations Genius, Bantam Negotiations Claiming value in negotiation How did Roosevelt’s campaign manager deal with the situation He sent a telegram to the photographer “Planning to distribute three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs? Respond immediately.” The photographer responded “Appreciate opportunity, but can only afford $250
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Negotiations Genius, Bantam Negotiations Hamilton Real Estate case You want to divest a property that is zoned residential. If it were zoned commercial it would be worth 1.5 to 2x more Over the past few weeks, you’ve received offers from a few potential buyers. All but one fall way short of your expectations Quincy developers plans to construct high-end apartment buildings and are offering you $38 million Quincy has the reputation of bargaining in good faith You expect that you can negotiate the price
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Negotiations Genius, Bantam Negotiations Hamilton – Estate One – a premier real estate company Estate One is interested in the property for luxury condos You should be able to negotiate a higher price for luxury condos than for an apartment building You will meet with the CEO to negotiate a
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Class 12 Negotiation - Negotiation Ben Sopranzetti...

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