You are the Sales Rep for Widgets, Domestic. You are new to Widgets Domestic and your Uncle got you the job. Everybody is watching you in your first negotiation with Lift-Trucks-R-Us. You know the following:

1. Your company just opened a plant in China (labor makes up 50% of the cost and you will receive a 50% reduction in labor costs).

2. Metal prices have dropped 25% (50% of the product cost). z

3. You are selling your widgets for $5.00 each and making a 75% profit (before moving to China and the 25% decrease in metal).

4. You sell 1 million widgets annually to Lift-Trucks-R-Us. 5. You can't afford to lose this account or your Uncle will look bad. 6. Do what you have to do in order to make a deal.