Reference no: EM132864655

Question - A retired craftsman from the garment industry has decided to create unique and well-made winter coats for people in Saint John. Each coat is considered to be a one-of-a-kind original, and is very well insulated to keep its owners warm, even during the coldest of weather. The craftsman considers each piece to be a work of art, and takes great pride in each coat. The coats are highly regarded in the community by all of those familiar with the craftsman products.

The income generated from the sale of each coat supplements other pension income to cover month to month living expenses, and any extra is saved for a grandchild's future education costs. The price of the coats is $180, and many have been sold since the start of the winter. All of the customers rave about the quality and warmth of the coats.

Since it is now February, the craftsman knows that the demand for the coats will soon start to slow down, but there are 20 remaining that need to be sold, otherwise, they will need to be stored, at a cost, until next winter. It is most desirable to sell all of the coats before the end of the winter season.

Given the time of the season and the appreciation for the quality of the coats, the craftsman needs to decide how to maximize the sale price of each remaining coat, while still trying to clear all of the remaining coats from inventory before March 15. negotiating position for the craftsman, with the hope of selling the remaining coats (and hats, mitts and scarves) for the best deal that possible.

1. Identify your target price.

2. Identify your opening offer.

3. Identify your resistance point

4. Identify your BATNA.

5. How was your BATNA determined?

6. How would you justify your best price to a customer and how would you counter resistance from a customer?