Were you to advertise this car for sale, say in Craigslist, how much will you advertise it for? Why? (I don’t have a magic number that I want you to come up with; I am interested in knowing how you think, as students of Negotiation, when you come up with this price). (5 points) (160 words max) b. What is your BATNA? Why?
IPN Test1 Part-B (open book/notes; do not consult peers) 44 Points 1. You own a 2001 Ford Focus that has close to 100,000 miles. You think your car is in an excellent condition. You research Kelly’s Blue Book and discover the following: Trade-In Value BLUE BOOK® TRADE-IN VALUE Close Kelley Blue Book Trade-In Value is the amount consumers can expect to receive from a dealer for a trade-in vehicle, assuming an accurate appraisal of the vehicle’s condition, mileage and features. This value will likely be less than the Private Party Value because the reselling dealer incurs the cost of safety inspections, reconditioning and other costs of doing business. More Photos Condition Value Excellent $2,100 Good $1,850 Fair $1,425 Suggested Retail Value Kelley Blue Book Suggested Retail Value is representative of dealers’ asking prices BLUE BOOK SUGGESTED RETAIL VALUE for a used car, and the starting point for negotiation between a consumer and a ® Close dealer. This Suggested Retail Value assumes that the vehicle has been fully reconditioned and has a clean title history, but has not been certified in accordance with any Certified Pre-Owned (CPO) program the automaker may offer (for which it may or may not qualify, according to factors such as vehicle age and mileage). This value also takes into account the dealers’ profit, costs for advertising, sales commissions and other costs of doing business. The final sale price will likely be less depending on the vehicle’s actual condition, popularity, type of warranty offered and local market conditions. More Photos Condition Excellent Value $4,430 Suggested Retail Value Assumes Excellent Condition More BLUE BOOK® PRIVATE PARTY VALUE Private Party Value Kelley Blue Book Private Party Value is the amount a buyer can expect to pay when buying a used car from a private party. The Private Party Value assumes the vehicle is sold “As Is” and carries no warranty (other than any remaining factory warranty). The final sale price may vary depending on the vehicle’s actual condition and local market conditions. This value may also be used to derive Fair Market Value for insurance and vehicle donation purposes. Close More Photos Condition Value Excellent $3,280 Good $2,980 Fair $2,430 Further, you also found that there were many similar cars for sale in or around the Wayne area: For Sale Near Wayne 2001 Ford Focus Total Listings Near Wayne: 29 Below Blue Book® Value*: 7 Assume the role of the seller and arrive at the following (you have to provide clear reasons to back your numbers): a. Were you to advertise this car for sale, say in Craigslist, how much will you advertise it for? Why? (I don’t have a magic number that I want you to come up with; I am interested in knowing how you think, as students of Negotiation, when you come up with this price). (5 points) (160 words max) b. What is your BATNA? Why? (5 points) (160 words max) c. What is your ZOPA? Why? (5 points) (160 words max) d. What is your reservation price? Name 2 factors that may influence this? (5 points) (160 words max) e. What anchor will you want to open with? Why? (5 points) (160 words max) 2. In the BD Vaccutainer case discussions, what were the three elements of the bargaining mix? (6 points) Mix1: Mix2: Mix3: 3. Choose one from the above and argue both for and against (e.g. no pvt. Label vs. agree to private label); give your rationale (6 points) ((160 words max) 4. What do you think your negotiating style is? Explain what might have shaped it? (7 points) ((160 words max)