If you can’t reach an agreement, write up the Letter Of Agreement setting out the terms you’ve agreed on, the terms that you couldn’t agree on, and the steps you propose taking to agree on those terms in the future. Write from your point of view. You may also want to add other terms to clarify issues you did not discuss or to otherwise protect your business interests. Avis never too late to get the best deal you can! At the bottom, include two sign-off blocks so you can both sign the agreement. Terms to Negotiate Purchase price (excluding applicable taxes) Delivery time (usually weeks or months)
Late delivery penalty (% of purchase price per month if the seller delivers late) Order cancellation penalty (usually a fixed amount if the buyer cancels the order) Warranty period (months or years the printer is guaranteed) Delivery and installation cost (usually a fixed amount) Training (assume 10 machine operators will need a week of training) Payment terms (% up front, % on installation, or other terms) Any other terms you think are relevant or would help you get the deal you want Print your letter and bring to class for review with your negotiating partner.
Good luck and get the best deal you can! Contact Information Buyer Robert Mason Operations Manager Jones Printing Inc. McCormick Building One Suburban Place Vancouver, British Columbia ASS Seller Jerry Lumberyard Sales Manager Kingdom Canada Corporation 911 Mosquito Slough Rd. Flatland Industrial Park Winnipeg, Manitoba RAY MM Sellers Scenario You are Jerry Lumberyard, the new Sales Manager of Kingdom Canada Corporation, based in Winnipeg, Manitoba, which makes high-quality printing presses for the commercial printing industry.
Kingdom is the last printer maker still manufacturing in Canada?all of the competition has moved reduction offshore. Because of your higher production costs, the company’s stock price has plunged over the last few months, putting the jobs of the management team at risk. Luckily, one of your new printers, the Magpie 6900, has proven to be very popular. As a result, you now have orders flooding in?in fact, so many orders that your manufacturing division can’t keep up.
You are back ordered more than 6 months. The company’s inability to capitalize on the success of this printer has been a major stumbling block to the recovery of Kimono’s stock price. While the 6900 has all the bells and whistles that the printing industry seems to want, it costs a lot to manufacture, and with your higher wage costs, it’s at the top end of the price range for comparable printers.
Your boss, the Vice- President of Sales, told you that unless you can sell them for at least $650,000 each, Kingdom will lose money. Your job is on the line, so you need to show your boss that you are worth the high salary you just negotiated (a lot more than you got in your last job as sales manager of an auto dealership). So even though you know Kingdom can’t deliver new presses for more than ix months, you need to continue to get new sales, and preferably with a lot of the money up front.