Negotiation: Viking Investments

Planning Document

Negotiation: Viking Investments                                           Role: Sandy Wood 

What issues are most important to you? (list in order of importance)

1. Convince Pat to pay outstanding invoice ($700,000) in cash within 15 days
2. Convince Pat to pay $250,000 pertaining to Oak wood upgrade
3. Ensure that $200,000 loan is not recalled
4. Try to lower monthly rental payment to $4,000

What is your BATNA? Reservation Price? Target?

BATNA: $425,000 from the immediate sale of house

Reservation Price: $700,000 in 15 days (Invoice) +$5,000 (rent) + $10,000 (due) + no recall on $200,000 loan

Target: $700,000 paid in 15 days + $250,000 paid in 30 days and no immediate recall on loan

What are your sources of power?

1. Pat gave full authority to Fawn to make decision during his trip and the decision to upgrade was made by Fawn
2. Though Pat was not available for a call for one week, he waited for 3 weeks to call me and that too only after completion of work. It is surprising that how the message regarding upgrade didn’t reach him and he waited for me to complete the work
3. There are only 6 companies with similar business in the local area. Industry is going through a tough period and Pat can’t risk spoiling relationship.
4. Not coming to an agreement would find my company claiming bankruptcy, which limits returns paid to Viking

What issues are most important to your counterpart? (list in order of importance)

1. Pay only $700,000

2. Recall the loan of $200,000

3. Get back due amount $10,000

What is your counterpart’s BATNA? Reservation Price? Target?

BATNA: Reduce monthly rents and a confirmation on no immediate recall on loan.

Reservation Price: $700,000 in 30 days (Invoice) +$5,000 (rent) + $10,000 (due) + no recall on $200,000 loan

Target: $700,000 in 30 days (Invoice) +$5,000 (rent) + $10,000 (due) + recall on $200,000 loan