negotiation paper

negotiation paper - When initiating the negotiation with...

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When initiating the negotiation with Technutronics, the sellers position was firm. They pointed out that the cost to make our product was high due to its required customization and complexity. Therefore, their initial quote of 5.90 was too low due to our requirements. Furthermore, The initial cost did not include their tooling costs which was an additional $40,000. This was unexpected. Our initial plan was to meet halfway between our quote of 4.10 and their quote of 5.90. We explained that there was going to be a learning curve for their employees as well as additional start up costs, therefore we were expecting to keep the price at 5. This was definitely too low for our supplier as it went significantly below their cost to produce their product. They were expecting to keep the price at around 6.10. Because we had devised our plan solely on their quote and not on their total cost, we realized that we had to compromise more than what we had anticipated. Therefore, we decided that we were
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negotiation paper - When initiating the negotiation with...

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