1. Hedley has multiple options to address Lyle's concerns about the price. Identify in detail the strategy(or combination of strategies) you would recommend Hedley should use address Lyle's price concerns.

2. Why do you feel your recommendation is the best path in this case for Hedley to create a Win-Win negotiation for both parties?

Part 2: The Negotiation Hedley sat down opposite Lyle Johnson in the main boardroom of VSSI. The room was decorated in soft pastels and the murals of bamboo forests and waterfalls on the wall complimented the water fountain and live bamboo tress occupying the far end of the room. However, Hedley's feeling of Zen peacefulness was being overshadowed by her anxiety about the meeting Lyle Johnson started the discussion by explaining that he was quite impressed by the presentations she'd done on their previous two meetings. He did however, have some concerns... As the meeting went on Lyle confirmed that VSSI was beginning a program to replace all their existing personal care appliances across all their locations. He said their preference was to find a sole-source supplier (an exclusive single supplier) for all their business. He anticipated that the program would be at least 54.5 million in the first year, possibly as high s $5.3 million. He thought they would able to hit at least $1.0 million additional sales annually for the next 5 years following that based on VSSI's growth plans. Johnson eventually came around to what he said were the issues and concerns that VSSI had with the LCPC offering which Hedley had informally proposed so far: His first concern was that compared to their competitors, the pricing for their new line was approximately 25% higher on average for similar appliances. His second concern was the ability of LCPC to deliver his needs on time. He would like the first of the product delivered to all their stores starting in exactly 2 months. Hedley had proposed 6 months. Hedley is excited because she knows that she has now entered a negotiation with VSSI. This means that they're happy with the product offering LPCP has put forward. However, she also realizes that this stage is critical to her getting the sale. Johnson has asked Hedley to get back to him in 48 hours with a revised proposal that addresses his concerns. Hedley returned to the LCPC office and reviewed the meeting with her boss Tony. Tony reminded her that the first draft proposal she went over with Johnson was at full price and full margin for LCPC and she had some room to play with direct price. Boalareminded bottled onion for Indian cicluding volumerehatod English Canadal He also reminded her that LCPC had options for indirect pricing including volume rebates and program allowances and he indicated that she has full authority to structure her proposal using any of the tools available, plus he encouraged her to be creative, as well bearing in mind some of the features and benefits of their new and future product lines. Finally, as she was leaving Tony's office he reminded her that within their corporate profit targets the most she could reduce the actual direct and indirect price combined was 15%. She would definitely need to be creative. Part 2 Proposal to VSSI: You are to play the role of Hedley and create a specific proposal to address Lyle's concerns. Review the information on Negotiations in Module 9 and develop a strategy for Hedley to follow in her next meeting with Lyle. 1. Hedley has multiple options to address Lyle's concerns about the price. Identify in detail the strategy (or combination of strategies) you would recommend Hedley should use address Lyle's price concerns. Note: Do not just provide high level generic suggestions like "discount the price", you must provide specific details like "offer a 30% price discount". Refer back to the approprate modules for options. Many are noted, pick the ones you think are best. Your grade will be based on the specific details you provide. 2. Why do you feel your recommendation is the best path in this case for Hedley to create a Win- Win negotiation for both parties? Part 2: The Negotiation Hedley sat down opposite Lyle Johnson in the main boardroom of VSSI. The room was decorated in soft pastels and the murals of bamboo forests and waterfalls on the wall complimented the water fountain and live bamboo tress occupying the far end of the room. However, Hedley's feeling of Zen peacefulness was being overshadowed by her anxiety about the meeting Lyle Johnson started the discussion by explaining that he was quite impressed by the presentations she'd done on their previous two meetings. He did however, have some concerns... As the meeting went on Lyle confirmed that VSSI was beginning a program to replace all their existing personal care appliances across all their locations. He said their preference was to find a sole-source supplier (an exclusive single supplier) for all their business. He anticipated that the program would be at least 54.5 million in the first year, possibly as high s $5.3 million. He thought they would able to hit at least $1.0 million additional sales annually for the next 5 years following that based on VSSI's growth plans. Johnson eventually came around to what he said were the issues and concerns that VSSI had with the LCPC offering which Hedley had informally proposed so far: His first concern was that compared to their competitors, the pricing for their new line was approximately 25% higher on average for similar appliances. His second concern was the ability of LCPC to deliver his needs on time. He would like the first of the product delivered to all their stores starting in exactly 2 months. Hedley had proposed 6 months. Hedley is excited because she knows that she has now entered a negotiation with VSSI. This means that they're happy with the product offering LPCP has put forward. However, she also realizes that this stage is critical to her getting the sale. Johnson has asked Hedley to get back to him in 48 hours with a revised proposal that addresses his concerns. Hedley returned to the LCPC office and reviewed the meeting with her boss Tony. Tony reminded her that the first draft proposal she went over with Johnson was at full price and full margin for LCPC and she had some room to play with direct price. Boalareminded bottled onion for Indian cicluding volumerehatod English Canadal He also reminded her that LCPC had options for indirect pricing including volume rebates and program allowances and he indicated that she has full authority to structure her proposal using any of the tools available, plus he encouraged her to be creative, as well bearing in mind some of the features and benefits of their new and future product lines. Finally, as she was leaving Tony's office he reminded her that within their corporate profit targets the most she could reduce the actual direct and indirect price combined was 15%. She would definitely need to be creative. Part 2 Proposal to VSSI: You are to play the role of Hedley and create a specific proposal to address Lyle's concerns. Review the information on Negotiations in Module 9 and develop a strategy for Hedley to follow in her next meeting with Lyle. 1. Hedley has multiple options to address Lyle's concerns about the price. Identify in detail the strategy (or combination of strategies) you would recommend Hedley should use address Lyle's price concerns. Note: Do not just provide high level generic suggestions like "discount the price", you must provide specific details like "offer a 30% price discount". Refer back to the approprate modules for options. Many are noted, pick the ones you think are best. Your grade will be based on the specific details you provide. 2. Why do you feel your recommendation is the best path in this case for Hedley to create a Win- Win negotiation for both parties