Knight Engines/Excalibur Engine Parts SWOT
Roles
I (Patricia Walrath) was the VP of Sales for Excalibur Engine Parts Company. Karen Bendimez was a representative from Knight Engines Inc.
BATNA
Going into this negotiation I went in with a set BATNA. I started off asking for $600 for each pistol and did not want to leave with less than $485 for each unit. Unfortunately my other option was to sell the units to Hank’s Super Monster Tractors Inc. for $100 per piston which would have given me a loss of $380 for each piston produced. This option of selling them for $100 was better than throwing them away but I was determined not to have a loss on all of the items. My alternative solution affected my negotiation by making push for a deal with Knight Engines Inc. because it would give me free advertising and shows the government our products so that if they are satisfied with our product, they would use us in the future.
Agreement
Knight Engines Inc. and I made an agreement of $485.10 (which included the 5% late fee) per unit. They ended up ordering 8,500 pistons of our 10,000 already at hand with no insurance. I was not completely satisfied with the agreement, not because of the money but the relationship. After hearing how other negotiations went it made my satisfaction decrease because I felt like more people were being more flexible than she was. Other than the price of the pistons, I asked for free advertising which she agreed to. We also agreed to do business later but at a higher price, which had no impact on competitiveness.
My Tactics and Strategies During the negotiation I used the tactic of forbearance which ended up making me frustrated. It made me frustrated because when she started saying something I did not agree with I wanted to interrupt her. I felt like holding my tongue during that situation would have showed her that I agreed with her