Erica Presbie

BUS415-03

Excalibur Engine Parts

While being Excalibur Engine Parts in this negotiation I had the goal of selling at least 8,000 of
the 10,000 pistons I already had in my inventory. I also wanted to make sure the pistons were branded
with our name on them, and we got the 5% rush fee. I wanted to sell them for our list price of $560 too
because I thought it was a fair price. I did not have a bottom line, but I would not have sold them for or
below the production price of $480 per piston. My opening bid was the $560. In the end I sold 8,000
pistons at $560 each with a 5% rush fee totaling $5,124,000 for the order.

I did not have a best alternative option because this deal seemed pretty straightforward that we
could come to some kind of agreement. It would have been useful to see look for other prospective
buyers if this deal did not go through since we had so much inventory in stock. I think knowing this
somewhat helped in the negotiation because we both had a very civil negotiation, and it went smoothly
knowing we both relied on each other to get what we wanted.

We did reach an agreement in this negotiation fairly quickly. I think we were both satisfied with
the end results because I sold the 8,000 pistons and was able to get the 5% fee I wanted, and they did
not need to purchase the extra 10% product guarantee because I negotiated to instead keep the 5%
when they wanted it reduced to 3% or 5% for the rush order.

I believe the long-term influence of this deal will be good for both parties because it was a very
civil and easy negotiation. They got their pistons rushed, with both our names, and the military should
become long time customers with us due to our quality. We accomplished all of our short- and long-
term goals and it was a very respectful negotiation, there was no one person that tried to sway the
other person to give or take more.

I do not believe the other party really had a strategy for this negotiation, but I think me staring
off the negotiation by saying somewhat along the lines of “So I hear you’re looking to purchase 8,000
high quality pistons in a rush order from us” helped show the quality and prestige of our brand. Since
this deal went so smoothly, I would definitely do business with this person again. Likewise, in future
exercises I will start off speaking in negotiations because things seem to go my way when I do because I
can sway the argument to however, I like when I get the first word in.