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Read the following case scenario: Sarah has now arrived in Tokyo armed with her marketing plan and culture research. She has begun seeking the best location for the branch storefront. Sarah has found a promising leasehold in Tokyo near all the car dealers and across the street from a Chinese motorbike company. The building is a small space but has good foot traffic and signage space and is located in a premier area of Tokyo. It is 75 Tsubo or 2,669 sq. ft. in size. The owners (a father and son) are asking rent of 1,000,000 JPY or $8895.21 per month excluding utilities. The owners have several buildings in the area and are well-respected real estate brokers in Tokyo as their family has been in the business for generations. The broker who arranged the meeting urged Sarah to think carefully before she spoke to the two men. They were rather old fashioned and probably best to avoid offending them as they controlled a lot of real estate in Tokyo. It might be hard to find a good space if they did not like her. Still, the rent was higher than she budgeted for and getting the price down $1500 would be best for the company. Sarah was due to meet the father and son the next day. At first, she thought it best for the real estate broker who showed her the space to carry out the negotiations. When asked, the broker was surprised by the request. He declined immediately explaining that it would be impolite. Sarah was worried. She clearly was out of her league. Yet, she had to start learning.
1. Develop three recommendations for a negotiating strategy that might help Sarah win the reduction in rent.
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