Please read the attached files and answer the questions that follows. My role is the SELLER in the Coffee Contract, please answer the questions as if I'm the seller. Thank you and I appreciate your help.

1. What strategies will you be using in the negotiation? Do you want to make the opening offer? Why or why not?

2. What strategies do you expect to see from your counterparty? How will you prepare to meet those strategies?

3. Given your scenario, what other information is important for you to keep in mind while negotiating?

You are Pat Hammer, East Coast Vice President of costs have, you believe, p Sales for Anderson Coffee. You have been invited to superior coffee and reputation meet with Sandy Grant, Food \& Beverage Director for the Statler Hotel in Ithaca, New York. The hotel The Statler Hotel account wo is scenically located near the center of the Cornell University campus and is attached to the renowned many current and future School of Hotel Administration. When Grant called However, the volume, at 1 you, he (she) expressed interest in Anderson's (approximately 4,545 kilogra Product, but seemed very concerned about the price. You do not have other custon York area, so shipping alone Two months ago, you received a request for bids for $0.80/lb. You know that An coffee suppliers for the contract that runs July 2003cost$5.93/b. - to a few through June 2004. A copy of the request for bids is who are also conveniently l attached. You responded to the request with a bid and selling cost to most restauran a packet of promotional materials. As July that your bid price represents approached, you figured Anderson was no longer under consideration. You were surprised and pleased The CEO of Anderson Coffe to be invited to meet with Grant. you that you should not accep $7.25/b. This price represent The coffee industry is, in many ways, risky. You from market rate due to the depend on weather patterns and on third-world school. Further, every penny politics for your production. However, modern the per-pound price will technology has dramatically reduced the perishability commission of $50. of your product. Further, Anderson's extensive lines of flavored coffees have sold well. Anderson also Summary of Key Points offers its customers advanced clinics and All prices include delivery consultations on coffee brewing and water filtration. A recent letter from a major chain of pancake houses attests to the positive results of these clinics and to the fact that customers appreciate them. Demand for Anderson coffee this year has been substantially higher than last year. Overall, sales have been extraordinary. You know that your product is higher-priced than that of many of your competitors. This difference makes sense because you pay more for your beans and support extensive research and development efforts on the growing, processing, and brewing of coffee. Further, your company has a commitment to paying independent coffee farmers a fair price that allows them to earn a living wage. These substantial REQUEST FOR BID The following bid request is for coffee products and coffee related services. The requested time frame is for a oneyear period beginning July 1, 2003 through June 30, 2004. Please review the enclosed details that may affect the bid price. PRODUCT: Colombian Coffee. Product shall be 100% Colombian coffee. Coffee will be provided in grind form appropriate for the equipment owned by the Statler Hotel. PACKAGING: The above items should be available in both 12 ounce and 2 ounce packets. The individual packets should be gas-flushed or vacuum packed to maintain a shelf life of up to 6 months. EQUIPMENT: The Statler Hotel currently owns their own coffee equipment with the exception of 3 Bunn-0-Matic ten cup pour over machines. It is expected that the company awarded the bid will supply the hotel with the above equipment at no charge while under contract. Furthermore, it is expected that coffee filters are provided at no charge for all coffee machines. EQUIPMENT REPAIRS/SERVICE: It is expected that the vendor will provide service repairs on coffee machines at no charge. Any parts needed for the coffee machines owned by the Statler Hotel will be the responsibility of the Statler. ORDERS/DELIVERY SCHEUDLE: To be discussed once the bid has been awarded to vendor. The minimum requirement is one delivery per 14 days although one delivery per week is optimal and preferred. PRICING: Prices quoted are to remain in effect for the length of the contract beginning July 1, 2003 through June 30,2004 CANCELLATION CLAUSE: Vendor may terminate the awarded contract upon 60 days written notice with a copy to both the Food and Beverage Director and the Purchasing Director of the Hotel. Statler Hotel may terminate the awarded contract upon 60 days written notice to the vendor. ACCEPTANCE TIME FRAME: Please submit your bid to James Robinnet, Purchasing Director of the Statler Hotel no later than June 1, 2003. In order for your company to calculate an appropriate price per pound for the coffee to be bid on, please note our annual usage this past year was approximately ten thousand pounds. In addition to the above, the Statler Hotel purchases flavored and decaffeinated coffees. In addition to the above bid, please enclose a product/price list of the flavored coffees offered by your company. If you have any questions in regards to this bid, please contact James Robinnet at 607-254-xxxx Thank you