You work for the sales department of an apparel manufacturing company. Company XYZ, with which you have met during a recent trade fair, is going to visit your facilities next week. You understand that this company wants to buy low but normally places large orders. However, you want to sell high. Your company might not be able to deliver very large orders unless you invest in new facilities. Company XYZ says it will send over a team of three people: the vice president of marketing, the purchasing manager, and a designer. They are interested in developing a collection for the next season and going over a price exercise with you. In addition, they are interested in placing a trial order at the price of a bulk order (i.e., large order). Delivery of the order is to be made in two weeks. Unfortunately, this trial order is well below the minimum quantity you re willing to accept, and your company normally needs one month to fill a new order.
How do you convey this information to the other departments within your company to prepare for this meeting? Will you invite your boss to the meeting? Why?
Using a negotiations worksheet, plan your responses to the following statements made by the purchasing manager: (a) We are concerned that you will not be able to meet our quality requirements; (b) Your price is too high; (c) Either take this trial order or we will look for another vendor. Decide at what point in the negotiations on price and delivery date you will decide to turn down the offer or accept the offer. Role-play your response to each of these statements.