Scenario:

Your company is replacing 30 computers for its office operations. This represents 50% of the inventory of computers for the business. The computers being replaced have sufficient capabilities to handle the current needs of the company. However, the objective in replacing the computers is to upgrade the technology in the office over the next two to three budget cycles, to prepare for an upgrade of the system-wide financial, accounting, and human resource systems. Your budget for the first 30 replacements per computer is $2,500 or a total of $75,000. You have contacted several local computer distributors to try to get the best price. ABC Office Technologies, a computer distributor company, will be coming to the office to look at the office setup and to make recommendations on the type of computer equipment they believe you may need and that they offer and sell. The ABC sales representative, in setting up the visit, said that they wanted to "earn your business." This visit could be the first negotiation session with ABC, so you need to be prepared. To prepare, you will use a negotiation worksheet to develop your negotiation plan for this purchase. As part of your preparations, you must review what you know about the company. ABC Office Technologies is a small computer company that specializes in computer and office products. They are a full-service company providing computer units, delivery and installation, warranty work, and financing for their installed products. The company has been in business for the last 10 years and is always looking for new business. ABC strives to provide good customer service with the hope that their existing clients will choose them for purchases of additional equipment and repeat business. ABC has a good standing with the Better Business Bureau.

QUESTIONS:

G. Determine your reservation value. (Your reservation value as the buyer is the highest price that you will be willing to pay for the product or service. With multiple issues aside from price, this may be difficult to determine):

H. Determine the reservation value of the seller. (The reservation value of the seller is the lowest price that the seller is willing to sell the product or service for):

I. Identify who will have the authority to make the final decision for your side. Will that person be at the table? If not, explain the process for obtaining approval to agree to a deal:

J. Identify who will have the authority to make the final decision for the other side. Will that person be at the table? If not, explain their process for obtaining approval to agree to a deal:

K. Describe everything you can about the other side, the people, culture, goals, and issues. Who are the people you will be negotiating with? What is their style? Is the company they work for known for working with other companies? Have they recently negotiated a deal with another company that you can call?

L. Identify other companies that provide the same or similar products or services if you cannot complete the deal with this company: