What is your reservation price

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Reference no: EM133622137

Question

After international shipping and customs, your employer's manufactured product has a Total Landed Cost in Albania of $1,500 per unit when you ship 100 units. You are meeting with an Albanian wholesaler who could be interested in buying in bulk from your company (at least 100 units). After a little back-and-forth, the manager for the Albanian wholesaler states, "my boss will never accept $1,700 for 100 units under any circumstance". Later, you suggest $1,600 if they buy 100 units. The Albanian manager replies that they have a German supplier offering to sell to him at $1,575 if they buy 100 units.

Question: What is your Reservation price, as the seller, in this negotiation?

Reference no: EM133622137

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