Question
You represent Beta, the second largest cardboard manufacturer in the area. You pride yourself on excellent products and the ability to respond to customer demands.
You represent Beta, the second largest cardboard manufacturer in the area. You pride yourself on excellent products and the ability to respond to customer demands. You're under a lot of pressure to grow your business, as Acme, the top dog in your industry, just took a big contract with Walmart that you bid on and lost. The community and your management team are aware of this big business deal, and you'd really like to take a win. You believe John Doe, Inc. may be a good customer if you can win some or all of their business over from Acme. Corrugated Cardboard (part #4123) is a fairly standard item in the industry.
Notes:
- As the Supplier Representative, you will the email the John Doe Purchasing Agent with a warm lead first. The Purchasing Agent will reply.
- Both parties, you and the Purchasing Agent, would like to identify a solution--use your selected negotiation method to find common ground.
- Corrugated Cardboard (part #4123) costs $.87/piece to make.
- Your products are entirely made in the US, and your company just invested in new machine that helps reduce the cost.
- Based on your experience, Acme (your direct competitor) generally charges $1.35 or more per piece--you suspect this is the case for your potential client.
- Margins of 25% are required. Anything above that is added to your bonus. Undercutting your cost isn't available, but you can negotiate any price you're comfortable with.
- You have multiple factories and warehouses nationwide.
- Lead time is 3 business days for orders under 5,000 quantities; 4 business days for quantities 5,000-10,000.
- You offer shipping for $35for orders under 10,000, but you can waive the shippingfor quantities over 10,000.
- Beta has great reviews from your customers with a 99.9% delivered in-full and on-time record in the past 24 months.
- You found the purchasing agent's information on LinkedIn and noticed that you have groups in common, and you also have one common connection, Jane from Depot. You've worked with Jane for years and have earned her trust.
If you like, you are welcome to develop other angles you cannegotiateto give yourself leverageas long as they are realistic. As a reminder, please do not discuss your half of thescenariowith yourcounterpartsprior to thescenario toensure this is as realistic (and fun!) as possible.
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