Reggie Blanchard’s delivery van was recently totaled when someone ran a stop sign and struck the van. The other person’s insurance company is going to pay Blanchard for the damages to his van, and for a week now Blanchard has been looking at new vans while he temporarily leases one. The following scenario transpired when Blanchard talked to Kelly, a salesperson who tried to sell him a new van.

Kelly: Yes, sir, may I be of service to you?

Blanchard: I recently lost my delivery van in an accident. I am temporarily leasing a van, so I would like to get one as soon as possible.

Kelly: What kind of van did you have?

Blanchard: A 1997 one like this (pointing to a low-priced van). It had low mileage and was in great shape.

Kelly: I know how you must feel. It is discomforting to lose a service van like that. And then you really don’t get enough money from the insurance company to buy a van just like the one you had, do you?

Blanchard: Yes, sir, that’s exactly right.

Kelly: How did the accident happen?

Blanchard then proceeds to explain how the other person ran the stop sign and demolished the passenger side of his van, and as he does this, Kelly nods his head in agreement with Blanchard’s every word.

Kelly: That sorry old soul must have had mud in his eyes not to have seen you in that intersection.

Blanchard: Ha, ha, I guess you’re right.

Kelly: Well, now don’t worry, because you’ve come to the right place at the right time. We’re making good deals on all this year’s models to be ready for the shipment of next year’s vans due any week now.

Blanchard: That sounds good. Let me ask you, how much for this one?

Kelly: Well, these models are going like hotcakes. They’re excellent vehicles and the prices are outstanding for the quality in the van. I can let you have this one for $37,000.

Blanchard: I hate to say it, but that seems a little high for this model.

Kelly: Oh, but this van has some great features, including our consumer protection package for $1,970 [smiling]. This includes paint treatment, a sound shield underneath the van, and a three-year rust prevention guarantee. It also includes a membership in our motor club plan, which has some excellent benefits for businesspeople.

This last sentence was spoken while Kelly put his hand on Blanchard’s shoulder.

Blanchard: Is that so?

Kelly: How much are you looking to spend?

Blanchard: I’m not exactly sure, but judging from what the book value of my old van is, and the amount of the notes I was paying on it, I’d like to spend not much more than $30,000.

Kelly: Well, like I say, I can give you this van for $37,000. We’ve already lowered the sticker price by $2,500. It normally sells for $39,500 [pause]. If you can spend $30,000 then $7,000 more won’t add that much to your payment. Besides, we’re the only dealer in town that offers the consumer protection plan, and we feel that the benefits far outweigh the cost. It’s a steal, I tell you.

Blanchard: Oh well, in that case I guess $37,000 is fairly reasonable. Let me think about it, but it sounds good.

1. What negotiation style did Kelly use to move Blanchard toward this sale?

2. List some things Blanchard could do to improve his own position at the beginning of thenegotiation.

3. Discuss some negotiation strategies that Blanchard should have used as the negotiation proceeded.