Price and Gas Station

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Before going into the meeting with Texoil, I had assessed my BATNA as mentioned by Fisher, Ury, and Patton (1991, p. 100). Since ads to sell the station had been running for a few months with no attractive propositions, I was becoming open to the possibility of not selling the station at all and continuing to run it - it became a definite element of my BATNA, although it would mean that my husband and I would be abandoning our dream plans. BP had already offered $400K for the station and even though that was a much lower amount than I was expecting, I could simply accept this offer and leave for my trip - this was also part of my BATNA. Of course, my best outcome could be from my negotiations with Texoil and I was looking
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None of this would have been news to the Texoil representative, but it established a common understanding of the value proposition involved and built some trust. Based on other changes that Texoil would be expected to make to the operations, such as adding a mini mart and a 3rd operating shift, I asked for a reasonable price of $590K.
The Texoil representative rejected our initial selling price and claimed that he was not authorized to spend this much money. It is likely that this was simply a means to negotiate down with us. He made an offer of $500K for the station, significantly under-cutting our suggested price. My spouse and I did our best to get the representative to improve his offer but were not able to do so. We re-iterated over the reasons/justifications for pricing the station as we had done, even presenting scenarios to show the undeniable profitability of the enterprise. Although the representative did not move on price, we were able to extract a concession in terms of employment for both of us at a fairly attractive annual salary. In the end the Texoil representative met our reservation point and we were able to conclude with a deal that was favorable to both sides.
In this negotiation, I could see that we covered all the three elements of negotiation moving from Information phase to Competitive phase and ultimately arriving at the Cooperative phase.

Lessons Learned
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