You are the proud owner of a beautiful blue Coupe built by the General Autos Corporation, a car you purchased new in late 2010. This little 2 door car has been very good to you, owing in part to your meticulous care and maintenance. Although you had no intention of parting with this vehicle, a friend who manage is a “Tech Town” store has offered you a great “ side hustle.” Tech Town is an upscale computing store known for its service and customer care. Your friend has offered to pay you $150 for each customer “setup” that you perform. This involves delivering and hooking up computer systems and linking various smart gadgets. Each setup requires just two to three hours work, and you could do two or three setups per week. The catch is that you need a vehicle with capacity to carry tools and occasionally large boxes. Your car is way too small, so you've decided to sell and purchase an SUV or light truck. The sooner you can sell your car, the sooner you can buy a new vehicle and begin making the big delivery dollars. Your research You need to get as much money as you can for your little car to aid in your next purchase. It's a great car, and you deserve some return for the time and money you spent caring for it. As you search to determine a fair price, you consulted a number of different sources, including a used car “Value Book” and the Internet website carvalue.com. You also visited another friend who works as a salesman at a local dealership. He suggested that if you decide to buy your truck through him, he could almost guarantee you $3350 (pending inspection) in trade-in for your Coupe. At your request, he spoke with his manager and returned to say that he was “99% certain” that he could get you this deal. You trust your friend and you believe he is offering you as much as he can for your trade. Indeed, as your friend, he quietly suggested that you spend a week trying to sell the car yourself, estimating that you could get an extra $400 to $500 in a private sale You took your friend's advice, promising to return to make a purchase with him soon. In preparation for a private sale, you spent $50 to have a local mechanic inspect your vehicle. He certified that your car is in good working condition, noting only that your tires were getting worn. His own “rough estimate” of the value of your car was around $4000. You next put up signs in your car, posted on a couple local websites, and put a sheet up on your neighborhood grocery store bulletin board. Because you consider yourself an honest person, you chose not to over inflate the asking price. You decided that $3795 was very reasonable and could make for a quick sale in the end, your ad looks like this: FOR SALE: 2010 GAC COUPE, 68 K miles, auto, A/C, radio, sunroof, no accidents, runs great, original owner, $3795 or better offer. The Negotiation As hoped, your listing created interest in the vehicle. After 3 days, you received 2 emails an 3 text messages. Both emails were dead ends, with lowball offers period of the text messages, the first 2 didn't seem serious, while a third text exchange seemed more promising. You've arranged for a meeting with this person today and expect you could make the sale. It occurs to you that this meeting may represent your best hope for selling the car this week. You're eager to make the sale and start the company computer setup job period of course, you still have the option of trading in the vehicle with your friend at the dealership. Before negotiating, spend a few minutes to figure out the following. Reservation: What was the LOWEST you are willing to sell it for? _______________________ Target: how much do you hope to get for the car? ___________________________________ Opening: What will be your opening offer? ________________________________________ BATNA: What is your BATNA? _________________________________________________

You are the proud owner of a beautiful blue Coupe built by the General Autos Corporation, a car you purchased new in late 2010. This little 2 door car has been very good to you, owing in part to your meticulous care and maintenance. Although you had no intention of parting with this vehicle, a friend who manage is a “Tech Town” store has offered you a great “ side hustle.” Tech Town is an upscale computing store known for its service and customer care. Your friend has offered to pay you $150 for each customer “setup” that you perform. This involves delivering and hooking up computer systems and linking various smart gadgets. Each setup requires just two to three hours work, and you could do two or three setups per week. The catch is that you need a vehicle with capacity to carry tools and occasionally large boxes. Your car is way too small, so you've decided to sell and purchase an SUV or light truck. The sooner you can sell your car, the sooner you can buy a new vehicle and begin making the big delivery dollars. Your research You need to get as much money as you can for your little car to aid in your next purchase. It's a great car, and you deserve some return for the time and money you spent caring for it. As you search to determine a fair price, you consulted a number of different sources, including a used car “Value Book” and the Internet website carvalue.com. You also visited another friend who works as a salesman at a local dealership. He suggested that if you decide to buy your truck through him, he could almost guarantee you $3350 (pending inspection) in trade-in for your Coupe. At your request, he spoke with his manager and returned to say that he was “99% certain” that he could get you this deal. You trust your friend and you believe he is offering you as much as he can for your trade. Indeed, as your friend, he quietly suggested that you spend a week trying to sell the car yourself, estimating that you could get an extra $400 to $500 in a private sale You took your friend's advice, promising to return to make a purchase with him soon. In preparation for a private sale, you spent $50 to have a local mechanic inspect your vehicle. He certified that your car is in good working condition, noting only that your tires were getting worn. His own “rough estimate” of the value of your car was around $4000. You next put up signs in your car, posted on a couple local websites, and put a sheet up on your neighborhood grocery store bulletin board. Because you consider yourself an honest person, you chose not to over inflate the asking price. You decided that $3795 was very reasonable and could make for a quick sale in the end, your ad looks like this: FOR SALE: 2010 GAC COUPE, 68 K miles, auto, A/C, radio, sunroof, no accidents, runs great, original owner, $3795 or better offer. The Negotiation As hoped, your listing created interest in the vehicle. After 3 days, you received 2 emails an 3 text messages. Both emails were dead ends, with lowball offers period of the text messages, the first 2 didn't seem serious, while a third text exchange seemed more promising. You've arranged for a meeting with this person today and expect you could make the sale. It occurs to you that this meeting may represent your best hope for selling the car this week. You're eager to make the sale and start the company computer setup job period of course, you still have the option of trading in the vehicle with your friend at the dealership. Before negotiating, spend a few minutes to figure out the following. Reservation: What was the LOWEST you are willing to sell it for? _____ Target: how much do you hope to get for the car? _ Opening: What will be your opening offer? BATNA: What is your BATNA? _________________________

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter4: Choosing A Form Of Business Ownership

Section: Chapter Questions

Problem 6DQ

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