Coffee Contract

Briefly outline your preparations for this negotiation:

This deal is a good opportunity for Anderson Coffee to expand its reputation in the coffee market and attract more customers in the future. My reservation price on this bid is $6.5 even though it will represent a loss of $0.20/lb; it is a worthwhile investment for growth opportunity in form of positive publicity. The BATNA would be not to make a deal and continue to nurture the current contracted customers to uphold our reputation as a company that is reliable and fair. Even though the costs are somewhat higher than other companies, it is because we support extensive research on the growing, processing and brewing of coffee.

Briefly outline planned strategy/tactics:

The strategy is if I must provide the opening offer it essentially drops an anchor on the table and would help orient the Buyer’s perception of the value of what's being negotiated for and as a seller I will have a bargaining advantage at a later stage in the negotiation process. Well my first anchor in the negotiation process should be close to the bid price.

Briefly describe the negotiation interaction and process:

The anchor was set in the interaction which was close to the bid price, there was a reasonable discount given to bring it to $7.40. In response to this the buyer provided a lower anchor of $6 which was too low for Anderson superior coffee and its reputation, as we invest a lot of money in extensive research and development efforts on the growing, processing and brewing of coffee. I also shared that we offer our customers with advanced clinics and consultation on coffee brewing and water filtration for which we recently received a positive feedback from a major pancake chain and it’s a fact that customers appreciate us. It will really attract customers for Statler hotel as it is the best in quality.  We eventually settled at $6.90, although the worst acceptable deal was at $6.50/lb.

Briefly evaluate the negotiation from your perspective in terms of:

1. Process (What worked well? What would you do differently? etc.)

The positive feedback from previous customers towards the advanced clinics, processing, and brewing of best quality coffee worked well, as it was a distributive negotiation, where each party was integrative in developing mutually beneficial agreements. Brand recognition, more customers and appraise for quality which could be a big outcome of affiliation of both the parties.

1. Outcomes (Did you achieve your target(s)? etc..)

The goal to save and make most money out of the deal, at the same time providing the best quality coffee was fulfilled. Although worst acceptable deal was at $6.50 but the settled agreement was of $6.90. Hence seller was incentivized by a bonus.

Briefly outline your preparations for this negotiation:

My personal reservation price was $6.00, although worst deal acceptable was at $6.50 per pound. I was also informed of the fact that Anderson is willing to sell at $5.95 for major consumers who are conveniently located.

Briefly outline planned strategy/tactics: