Reference no: EM131093251

Negotiating with a Friend

Barney spotted a high-quality used car on a dealer's lot over the weekend. He would have bought it immediately if he had had more cash. The dealer will give him only $1200 on a trade-in for his current automobile. The car Barney wants is really great, and chances are good it will be sold shortly. Barney has planned carefully and decided he can swing the deal if he can sell his present vehicle to a private party for around $2000. This would give him $1500 for a down payment and $500 for accessories he wants to add. The car is in good condition except for a couple of minor dents in the fender. The snow tires for his current car won't fit the new one but can probably be sold; that will help. Barney can remove the new stereo system he installed last month and place it in the new car.

Billie, one of Barney's co-workers, heard that Barney wants to sell his car and plans to talk to him about it. Her daughter is graduating from college in three months and will need a car to drive to work. Billie can afford only about $1800 including any repairs that might be required, and she needs to reserve enough money for snow tires. Her daughter has seen the car and thinks it's sporty, especially with the stereo. Billie checked the blue book price for the model of Barney's car, and she knows the average wholesale price is $1200 and the average retail price is $1950.

Questions

1. What are Barney's objectives?
2. What are Billie's objectives?
3. What are likely to be the points of conflict?
4. What power does Barney have?
5. What power does Billie have?
6. How important is time to Barney?
7. How important is time to Billie?
8. What are some possible points of compromise?