I started by offering my partner to exchange information about our priorities. My partner agreed and we shared information with each other regarding the items that matter for each of us. This enabled us to save time and focus on the issues that we could create some value for both of us. I told my partner that the number of runs was very important for me and I made it clear that the more runs I got, the more I can pay her for the show. After understanding that number of runs was not important for my partner to the extent that it was for me, we agreed that the number of runs should be 8 (maximum) to create the maximum value for the deal.
Then we realized that issues on the table were not equally important for us. Number of runs was the most important issue for me and it was affecting the number that I could pay my partner. Similarly, time of payment was the most significant item for my partner and it was clear that the sooner she got the payment, the more she could make money. After realizing the most important areas for each of us, we basically traded these items by giving out the maximum we could on them. So, I gave her the earliest payment option and she gave me the maximum run numbers.
This helped us expand the pie. Then we added other items into the negotiation. The main item was licensing fee and it was tough to reach a consensus. As the maximum amount that I would pay was $60,000, I started offering well below this number and offered $25,000. Her counter offer was $70,000. Following numerous counter offers and going back and forth, we saw that it was not likely that we would have a deal. At this point, we decided to include JUNIORS to the negotiation and wanted to see if we could make some progress using this new show.
Here we saw that JUNIORS presented us the opportunity to expand the pie since we were both willing to cut a deal on JUNIORS. After a quick negotiation session, we met in the middle and agreed on $15,000 for JUNIORS program. Then we went back to negotiating on licensing fee and agreed on $57,000 as we were both over our BATNA. My partner and I displayed good will against each other. Although we negotiated very tough, we always preserved our positive attitude towards each other. And this helped us have a fruitful negotiation in which both parties got what they wanted out of this negotiation.
In this context, good faith within both parties helped us manage the time efficiently. We concluded and reached a deal 10 minutes before the deadline. 2. Tools/Concepts: Throughout the negotiation, I applied all the techniques that I learned so far. I offered to exchange information about our agendas and tried to learn what issues are the most important ones for my partner. After exchanging information and asking a few questions, we understood that there are some items that we can trade off and create value.
It got clear that the amount that I could give her depended on the options that she would offer to me. For example, the more runs she gave to me, the more I could pay her. We also handled all issues as packages and this helped us to get the most value. For instance, I got a bad deal for payment calendar but I gain the maximum for runs. Maintaining long-term relations was also an important item as there was another show that my TV would be interested in buying in future. As we avoided being furious and irresponsible throughout the negotiations, we managed to include the future deal to the table.
So, if we focus on maintaining good relations for future business, it will be easier to reach an agreement in negotiations. I also saw in the class that some groups made contingency contracts to create value by utilizing their different expectations for the future. So, I learnt that it is not always bad to have different expectat?ons as you can bet on those guesses and you can create value betting. 3. Mistakes: I believe I did not do anything that could be considered as mistake. We were the group that created the highest and maximum value in the negotiation.
However, I could have pushed more in negotiation for licensing fee. 4. Insights: My reconciling again helped me find ways to reach an agreement in this exercise. I also saw that being open and sincere make it easy to compromise. I sincerely shared information with my partner and made my stance clear. For example, I declared that I needed maximum runs. Then it got easier to negotiate. 5. Emotions: The fact that I had a 3,000,000 worth BATNA made me feel comfortable throughout the negotiation. I thought I still had a good deal if I left the table with impasse. This feeling made me negotiate effectively. . Goals: I will look for items that I can trade off. I learned once again that if you share information, you can create value. I will continue to share information and ask questions to see what areas are the most important ones for my partner. This gives you the opportunity to see some items that you can do tradeoffs. I saw that focusing on establishing long term relationship with your partner helps you get better deals. So, I will seek for opportunities to maintain good relations within the negotiation by avoiding conflicts on issues that do not matter in short term
I once again saw that positive attitude and good will never go unanswered. Therefore, I will keep the nice attitude and act positively in my future negotiations. As I did it in this exercise well, I will negotiate things bundled together and provide package or multiple offers to take advantage of compatible interests. I will always keep in mind that there is always a chance for post-settlement settlement and I can create more value using it. In case of different expectations for the future, I will look for the possibility of making a contingency contract to create more value.