Essay on Salt Harbor Case

1169 Words Jan 20th, 2012 5 Pages
Salt Harbor Exercise

The Salt Harbor exercise was a real world negotiation exercise that added many factors into the decision making. In this exercise, Lukas and I were partners. Lukas was the buyer and I was the seller. In this negotiation, I had recently purchase some property that I wanted to build into a coffee shop. The neighbor, who is also the buyer, did not want me to build the coffee shop and instead wanted to purchase the property. Lukas stopped me from being able to build the coffee shop through legal channels. I was given the option to take my chances in court or attempt to tell the property to Lukas and open my coffee shop at another location.

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This exercise was
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My strategy to come out as even as possible from the exchange and in many ways, I think I ended up giving my opponent the upper hand when I failed to consider that Lukas might want the property even more than I want to get rid of it.

My Mistake: My mistake came when I became anchored by the initial offer. When Lukas offered $100 as the initial offer, I thought he was indicating that his limit was really now. I never really imaged that he would offer me such a low value considering how high he authorize to pay for it. Obviously, had Lukas offered a much higher value, I would have most likely adjusted my numbers and strategy to reflect a much higher selling price. However, given his initial offer, I decided to stick with my strategy and attempt to get $165 out of him. My strategy worked to the exact specifications that I originally wanted. I get exactly my target and in many ways was successful in my negotiation. However, I failed to realize the value that the property had for Lucas and how much higher he would be willing to pay for it. I was anchored by his initial offer which subsequently affected my offers. At the same time, had I gone first, I believe a similar outcome would have emerged. I most likely would’ve offered 180 in the hopes of getting it down to 165. I believe the reason I was able to so easily achieve my target or what I wanted is because my price was

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