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Work in teams of three people. Make negotiations with another company. Your aim is to score maximum points.

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Team A: the Seller (representing Inter-Truck, Ltd.)

 

Task:

You represent Inter-Truck, a foreign truck manufacturer. Your firm has only a very limited distribution network in the United Kingdom. You have been sent to develop links for a distribution network, in preparation for a major exporting drive aimed at the British market.

You will be visiting a potential customer, interested in purchasing six trucks. You have submitted what you consider to be a competitive price and do not wish to lower this any further. However, you know that the potential customer is likely to ask for better terms (for example, further discount, shorter delivery period, vehicles to be painted in customer’s livery).

Your object now is to minimize your concessions and persuade the Seller to increase the order. To identify your priorities a point system has been attached:

 

No colour change 3 points
Guarantee period: 1 year 2 year 3 year   3 points 2 points 1 points
Delivery time: More than 90 days 90 days 80 days   4 points 2 points 1 point
Further discount: 0% 1% 2% 3%   5 points 3 points 2 points 1 point
Order for 6 vehicles 5 points
Credit period of 60 days 5 points

Of course you will not be able to score all 25 points, as you will have to make tactical concessions; but your aim is to score the highest number of points that you can.


Team B: The Buyer (representing Emery Ltd)

 

You are in charge of truck purchase for a food distribution company based in northern and central England. As your requirements are quite specific, you have had to look closely at the available trucks and have decided on a foreign model, new to the British market, made by Inter-Truck. You informed them of your intention to purchase six trucks.

Their initial price was quite competitive, but nevertheless you are meeting them now in your head office in order to try to obtain better terms (for example, having the trucks painted in your company’s colours, further discount, shorter delivery periods); but of course you have no wish to pay more money. You are not going to increase the order. Credit period is 60 days. Ask for a longer period.

The meeting is in your office.

Remember that you are potentially a major customer. If you are satisfied with the trucks, you may buy more at some future date. So give the Inter-Truck representatives a difficult time! Below are the conditions on which you will try to insist. To show their relative importance to you a system of points has been attached.

Colour change 3 points
Guarantee period: 1 year 2 year 3 year   1 points 2 points 3 points
Delivery time: 80 days 90 days More than 90 days   4 points 2 points 0 point
Further discount: 3% 2% 1% 0%   5 points 3 points 2 points 0 point
Order for 6 vehicles 5 points
Longer credit period 5 points

Of course, you will not be able to score all ten, as you will have to make tactical concessions in order to win certain points.

 

 

  Initial position Partners Position Fallback position
price 1800$ 2000$ 1900$
discount 3% 1% 2%
payment 100% 100% 100%
delivery More than 90 days 80 days 90 days
guaranty 3 year 1 year 2 year
promotion 100 % 100 % 100%

 


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