For this assignment, please read the case material at first, then utilize your negotiation experience, common sense, or intuition to make a good plan for the negotiation.
As the representative of Anderson Coffee, I have three main objectives for this negotiation: 1. secure the contract with Statler Hotel, 2. keep the price as close to my bid price of $7.94/lb, and 3. build a relationship to pursue other accounts that could potentially be in the New York area. To accomplish these three objectives, we must analyze the opponent’s information, Statler Hotel, and review possible risks that can happen. Overall, our goal is to increase brand awareness and reputation of Anderson Coffee as well gaining profit.
My plan for the negotiation with Sandy Grant, Food & Beverage Director for the Statler Hotel in Ithaca, New York is to start off explaining how Anderson Coffee grows, processes, and brews their coffee. I would then go into the advanced clinics and consultations on coffee brewing and water filtration that is offered to its customers. It is important to mention the positive feedback that the clinics and consultations has resulted in as well. After this speech, I would begin with a high price; the bid price of $7.94/lb. Sandy Grant will then reject the first offer of course. This will start off the negotiation with a middle ground of their offer and your original bid offer. After all, since you were the one invited by Statler Hotel, Anderson Coffee is more of the want in this situation. The negotiation will go back and forth but it is best to stand your ground and be firm. Statler Hotel is aware of the brand recognition that they can offer to Anderson Coffee so they will be firm on their end as well. However, listening is key to the negotiation because it is best to make the other party feel heard and understood from the point they are coming from.
The plan I have going into the negotiation is to have alternate options as well. If the price seems to be on the lower end ($6.50/lb), it is best to negotiate other alternatives. For instance, Statler Hotel could handle the shipping and handling costs that come with delivering the coffee. Hoping this will work, settling on a lower price could be good for Anderson Coffee in the long-run because they are the first customer to do business with us in the New York area. This could also set up opportunities in the future with other companies once the brand recognition is heightened. Overall, delivering to different customers in different areas can increase potential buyers. If other businesses are aware of this quality coffee being offered only in the Statler Hotel, it will persuade others to get into this trend.