Distriutive Tactics

The negotiation anchoring was initiated by Ms. Grant for a price of $2.0/lb as their first offer along with providing the number of available customers in the campus (30,000). Even though the bid response price was stated as $7.94/lb (Including delivery cost of 0.80/lb) Mr. Grant did not honor the bid price and instead provided their competitor price. Overall during the negotiation I understood that Mr. Grant was building an advantageous situation to push me to lower the price with data which I felt was irrelevant.

Though unhappy, I still discussed about the product being 100% Columbian, packaging and the modern technology used to maintain a shelf life of up to 6 months. Provided information about the extensive lines of flavored coffees. Other offerings via advanced clinics and consultations on coffee brewing and water filtration. Increase in demand and that sales being extraordinary. I also felt that I should start with a higher price, which is the standard restaurant price of $8.10/lb as my counter offer.

The counter offer was not acceptable by Mr. Grant second offer was a price of $5.0/lb. I felt an impasse would be a better option in this case as I would not meet even my RP, which is the worst acceptable deal and informed Mr. Grant to continue with their competitors.

There are several important steps that I did not practice in this exercise. If I had the chance to do the exercise again or if I were going through a similar situation I would be very careful in working on the exercise with the following preparations:

- Should have clearly indicated the bid response value again as against the anchored value of $2.0/lb. This would set the stage for any further collaborative discussions.

- Should have not stormed for the first offer, rather