Assignment 1- Case Study Negotiating a Purchase Reggie Blanchards delivery van was recently totaled when someone ran

a stop sign and struck the van !he other persons insurance company is going to pay Blanchard "or the damages to his van# and "or a week now Blanchard has $een looking at new vans while he temporarily leases one !he "ollowing scenario transpired when Blanchard talked to %elly# a salesperson who tried to sell him a new van %elly& Blanchard& %elly& Blanchard& %elly& 'es# sir may ( $e o" service to you) ( recently lost my delivery van in an accident ( am temporarily leasing a van# so ( would like to get one as soon as possi$le *hat kind o" van did you have) A 1++, one like this -pointing to a low priced van. (t had low mileage and was in great shape ( know how that must "eel (t is discom"orting to lose a service van like that And then you really dont get enough money "rom the insurance company to $uy a van /ust like the one you had# do you) 'es# sir that is e0actly right 1ow did the accident happen)

Blanchard& %elly&

Blanchard then proceeds to e0plain how the other person ran the stop sign and demolished the passenger side o" his van# and as he does this# %elly nods his head in agreement with Blanchards every word %elly& Blanchard& %elly& !hat sorry old soul must have had mud in his eyes not to have seen you in that intersection 1a# ha# ( guess you are right *ell# now dont worry# $ecause youve come to the right place at the right time *ere making good deals on all this years models to $e ready "or the shipment o" ne0t years vans due any week now !hat sounds good 2et me ask you# how much "or this one)

Blanchard&

%elly&

*ell# these models are going like hotcakes !heyre e0cellent vehicles and the prices are outstanding "or the 3uality in the van ( can let you have this one "or 45,#666 ( hate to say it# $ut that seems a little high "or this model 7h# $ut this van has some great "eatures# including our consumer protection package "or 41#+,6 -smiling. !his includes paint treatment# a sound shield underneath the van# and a three year rust prevention guarantee (t also includes a mem$ership in our motor clu$ plan# which has some e0cellent $ene"its "or $usinesspeople

Blanchard& %elly&

!his last sentence was spoken while %elly put his hand on Blanchards shoulder Blanchard& %elly& Blanchard& (s that so) 1ow much are you looking to spend) (m not e0actly sure# $ut /udging "rom what the $ook value o" my old van is# and the amount o" the notes ( was paying on it# (d like to spend not much more than 456#666 *ell# like ( say# ( can give you this van "or 45,#666 *eve already lowered the sticker price $y 48#966 (t normally sells "or 45+#966 -pause. (" you can spend 456#666# then 4,#666 more wont add that much to your payment Besides# were the only dealer in town that o""ers the consumer protection plan# and we "eel that the $ene"its "ar outweigh the cost (ts a steal# ( tell you 7h well# in that case ( guess 45,#666 is "airly reasona$le 2et me think a$out it# $ut it sounds good

%elly&

Blanchard& (NS!R:C!(7NS

1aving read this case study# you will write a short report on the negotiation that you /ust read a$out (t will discuss the negotiation style employed $y %elly and Blanchard# it will discuss the ; parts o" negotiating and what Blanchard should have done at each step in the negotiation to receive a $etter deal 'our paper will $e appro0imately <66 words (t must include a title page# a ta$le o" contents and then the report itsel" 'ou will need to have outside sources to support your claims and all sources must $e cited appropriately in the paper :se the "ollowing 3uestions to help you determine the "ormat o" the paper =:>S!(7NS 1 8 *hat negotiation style did %elly use to move Blanchard towards this sale) *ho has the leverage in this negotiation) ?oes the leverage change as the negotiation goes on) (" so descri$e how and when it changes *hat does this do to the negotiations

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2ist some things Blanchard could do to improve his own position at the $eginning o" the negotiation ?iscuss some negotiation strategies that Blanchard should have used as the negotiation proceeded)