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Erika and Rahul own a small bakery and have been looking for a new, more affordable storefront in which to sell their baked goods. To

Erika and Rahul own a small bakery and have been looking for a new, more affordable storefront in which to sell their baked goods. To date they have been renting kitchen space from a local college and selling their baked goods to restaurants. Covid-19 has been hard to the couple and unfortunately Rahul has defaulted in his car and student loan payments leaving Erika the only one with good credit and any lease will have to go in her name alone should they want to try and negotiate a decent interest rate with the leasing agent

Finally good fortune has hit the couple and one of the restaurants they sell their baked goods to has expressed interest in negotiating a more formal ongoing order of breads and pastries for their 3 restaurants. The problem is that the couple only has access to the college kitchen a few days a week, meaning that to expand they will need their own space.

Erika and Rahul have been watching local commercial rental listings and have come across a 1200 sq. ft. unit in a commercial plaza in Port Credit, Ontario. It seems perfect. It has a nice storefront for street traffic and the space to increase their production. They discover the space has been occupied by a pizzeria so it is hardwired for large commercial ovens and has the proper HVAC required. They notice that the large pizza oven and other equipment has been left behind in the unit but is not listed in the advertisement. They wonder if they may be able to get the equipment at a good deal as they figure that it is not needed anymore.

There is a lot for Erika and Rahul to think about. Let's examine the considerations of this couple.

Positional bargaining is a poor way to negotiate because you risk:

Question 1 options:

collaboration

further entrenching a party in their position

reciprocity

a win-win solution

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