Salt Harbor: Confidential Information for Brims

Salt Harbor: Confidential information for Brims  

In this negotiation situation the manager for Brims, a fast-growing chain of coffee shops was trying to sell its parcel near a bed and breakfast inn. In this situation, the target was to sell the parcel at the best price possible to avoid the BATNA for both parties. In fact, if Brims and Easterly couldn’t reach an agreement the case can end up in court, which will be the worst alternative for both because they are going to lose money and none of us is 100% sure to win the trial. 

Moreover, Brims is in a stronger position, which is an advantage for him to improve his BATNA and weaken the one of the other party’s. For him the best alternative to a negotiated agreement would be to stay in the parcel and not sell it. In this case there was 2 reservations prices between the last price where Brim is ready to sell the parcel (110 000$) to the highest price Easterly is willing to pay for the parcel (350 000$). The ZOPA was between these two figures and the best price both parties could have negotiated was the middle price (220 000$). In this situation, I win the negotiation at the very best price I was realistically hoping to cover all the charges due to the purchase of the new coffee shop. For me, the parcel had more value, it was easier to offer a highest price and convince my partner to buy the shop. At the end of the negotiation, we both were happy because we reached a win-win agreement without law pursuits and we also agreed a partnership. 

According to me, I need to be more persuasive, by knowing better my BATNA and in this case what can really be my last price. I noticed it is very important to ask a lot of questions to try to find the reservation price of the other side and discover her interests and not only her positions. I could have done better the justification of my first price to convince the other party to pay the closest price to my best first offer. I could have been more persuasive on the legal aspect which was in my favour in the bargaining. I point out, that negotiation is not an easy process and to improve my negotiation skills, I will have to ask more questions to the other side to determine her BATNA and create value through trades to improve my position and strengthen my own BATNA.