What are your interests in this negotiation?

My Interests in the negotiation are as followed:

- Finding a new buyer for the 10,000 pistons that had already been produced from
the defunct government contract
- Minimizing financial loss from 10,000 piston production
- Appeasing and quelling the complaints of shareholders
- Brand awareness / advertising: agreement from Knight to indicate their engines
are fitting with Excalibur Pistions
- Maintaining high quality standards to uphold the firms high-quality reputation
- Structuring a deal where the Swiss Government is aware of high quality pistions
in hopes of request submissions from Excalibur for engine parts in the future

2-What is the bargaining mix in this negotiation?

The bargaining mix in this negotiation is as followed:

- The cost per piston
- Brand agreement to indicate Knight engines were equipped with Excalibur
pistons
- Rush fee
- Quality-control insurance program fee
- Need for additional units

3-What is your BATNA?

My BATNA in this negotiation is to find another buyer for the pistons, such as Super
Monster Tractors Inc., who would buy the parts for $100 per piston, and suffer a
financial loss.
4-What is your opening bid? (Remember that you should include every element
of the bargaining mix in your opening bid). (5 points)
My opening bid is going to be $560 per Piston + 20% rush fee to have the order
delivered in 10 days ($672 per piston), 10% to be delivered in two weeks ($616 per
piston).
The quality-control insurance program, which is 10% over the selling price ($56) will be
optional.
The option to have Excaliburs logo on the engine will be used as a bargaining chip. For
example, if Knight wants a decreased rush fee or insurance program fee, I will be willing
to concede to a lower percentage fee if they agree to indicate on the chassis that their
engines are fitted with Excalibur pistons.
The need for additional units will be capped at 2,000, as to not exceed the current
inventory and need to produce more pistons.

5-What do you think the other party's interests might be in this negotiation?
I believe Knight have several interests in this negotiation.
First and foremost, would be regarding time. It is clear there is an immediate need for
the engine parts for an engine contract with another party. They wouldn’t ask for 8,000
parts to be made in two weeks unless there was a major rush. Perhaps they ordered
parts from another engine part supplier and there was a quality control issue, or maybe
they didn’t order enough parts initially, but the immediate need for parts is evident.
Second would be regarding Knight’s current contracts. There is a rumor that Knight is
using the company’s pistons in order to build engines that will ultimately be sold to the
government. For a government contract, it is essential that they use the highest quality
materials and complete the project on time. If they use poor quality materials and the
government has issues with the engines down the road, it would be devastating for the
reputation of the firm as well as diminish the chances for future government contracts.
Additionally, if they do not fulfill the requirements of the (suspected) government
contract on time, it will result in delays, and would also damage the firms reputation and
chance for future deals.
Third would be regarding their financial situation. Knight may also be suffering from the
lack of demand in engines and could be suffering financially. They may be over budget
in their current contracts and need to minimize the cost per piston paid as much as
possible to reduce quarter losses and appease shareholders.