Negotiation - Rapid vs Scott

1853 WordsOct 21, 20128 Pages
The Settlement: • Year 1; Rapid to pay cost for equipment and not services ($68,000) • Year 2; Scott to provide 2nd generation “Print Rite”, Rapid to pay original contract amount for year plus at minimum, $12,000 at the end of year (equivalent to $1,000/month) for software application with the following contingency: 1. In case, Rapid increases print volumes by 25% - end of year software charge is calculated at $2,000/month, or $24,000 for the year (Scott’s original price for this version of the software solution) 2. In case, Rapid increases print volumes by 33% - end of year software charge is calculated at $2,500/month, or $30,000 for the year 3. In case, Rapid increases print volumes by > 50% - end of year…show more content…
With this very weak BATNA of litigation and possibly losing his business, and high personal interest in the negotiation, Brown entered the ring. After establishing that this was a dispute between the words of two loyal employees, there was a temporary impasse. Brown would believe Williams and Scott would believe Robertson. Brown established how concerned she was about her business and what a great service idea Rapid Printing had. She also drew attention to the fact that Scott’s company signed a contract and then became nonresponsive to Rapid’s inquiries and concerns. In this way, Brown thought that Scott was violating his contract. At this point, with the mediator leading the way, both parties tried to go to the balcony. They stopped discussing conflicts in their perspectives and started talking about their business ideas and growth opportunities. Brown especially discussed the possibilities of the service idea Rapid sought to implement. She saw areas for growth within their niche market as well as an opportunity to expand into other printing markets. She also realized that because Scott was a much larger company, there were lessons to be shared by Scott that could inform Rapid’s growth. Brown suggested that Scott and his company become more involved in Rapid. This could mean investing in Rapid (which would give Brown much

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