I- NEGOTATION PREPERATION

Select a specific real business life negotiation, deal or transaction with which you have
been or will be involved. Give it a code name to allow you identify it.

We established a 2 years contract with “Dayan Meat”, our main supplier of 2 types of
meat, the Imported New Zealand Grilling meat which we buy for 19$/Kg and The
imported New Zealand Lamb for 23$/kg.

We consume 1000 kg of grilling meat per year and 650 kg of Lamb. The supplier
delivers every Tuesday and Thursday and he’s the exclusive agent in the area.
The purchase request should be sent one day ahead at the most. Dayan meat has
been our exclusive supplier since the hotel’s opening, i.e. 5 years ago. Last minute
requests may arise due to last minute bookings or events and Dayan Meat would
fulfill our needs even if it didn’t fit in the delivery period. Payment terms, 60 days

The contract was about to expire and the food cost was high. I called Mr. Oneissi to
get better rates before renewing the contract. I informed Mr. Oneissi that our
consumption is very high and we’re not feeling that we’re getting a fair treatment
compared to the quantity ordered. He replied back by telling that he can grant me
better prices but lower meat quality.

My main interest to join the critical skills for profitable negotiation course was to
acquire more skills on how to conduct a structured negotiation leading to the best
profitable outcomes. The negotiations steps were a key learning experience
specially the preparation phase. This course taught me how to use those skills in a
way to make the best out of any discussion aimed at reaching an agreement.

Preparation Matrix:

VARIABLES IDEAL POSITION LIMIT POSITION

Quantity Purchased Purchase 1200 KG/year of Quantity of grilling meat
grilling meat and 800 KG/year can be limited to 1000
of lamb KG/year and 650 KG/ of
lamb
Price/Kg 17$/kg for grilling meat and 19$/kg for grilling lamb
20$/kg for the imported lamb and 23$/kg for the
imported lamb
Delivery time 3 times a week including once 2 times a week
on the weekend
Payment terms Every 90 days Every 30 days
My first strategy was to get at least 2 new offers from meat wholesalers in Beirut
mainly “Mabsout Idriss” & “Dkerko” to get better rates for the grilling meat and the
imported New Zealand lamb including delivery schedule if any than before meeting
with Mr. Oneissi to discuss the contract renewal terms and conditions.

During the negotiation process, I would start by thanking Mr. Oneissi for all his
efforts & contributions towards the hotel and would remind him about the
importance of our fruitful & strong relationship than follow and open and honest
approach by informing him that I got a better offer which fits exactly my needs.

OURS THEIRS
Motivator 1 Being one of the biggest Considered one of their
meat consumption in the key accounts in the area
area with regards to our
turnover rate and the
restaurant capacity
Motivator 2 Reduce Food cost by 3% to Being one of the most
reach the average food reputable restaurant in
cost i.e. 33% in the the area reflects on the
Lebanese cuisine high positioning of the
supplier
Motivator 3 Known as the best Accuracy in payments
restaurant in the area with within the payment terms
high quality of meat and
special Lebanese
traditional dish
Sanction 1 Might not be able to get Loosing one of their
the same meat quality biggest accounts
Sanction 2 Difficulties in the delivery Loosing credibility in the
process area.

II - NEGOTIATION PROCESS:

If you selected a past negotiation and after attending the Negotiation course, describe
in details what went right and what went wrong and what will you differently if you
have to renegotiate it today:
If you have selected a future negotiation what are the main negotiation skills you are
going to use in both the Investigation phase and the “Proposals/Counter-proposals”
phase and explain the benefits of using those skills.

What went wrong?

 - I called Mr. Oneissi on the phone to negotiate the terms and conditions of the
contract.
- I did not call other suppliers to get better rates thinking that it was useless
since he’s the exclusive agent in the region
- I informed Mr. Oneissi that I would be looking for alternative options if he
wouldn’t grant me better rates for the meat without weighting the impact of
changing the supplier.
- I refused to listen to Mr. Oneissi other suggestions focusing only on my
proposal
What went right?

- Mr. Oneissi grant me 17$/kg for the Grilling meat and 21$/kg for the lamb
imported from New Zealand
- Mr. Oneissi appreciated the fact that I was transparent with my demands
which definitely helped to create stronger bonds between both parties
What will I do if I negotiate today?

 I will have to schedule a meeting with Mr. Oneissi at the hotel premises to discuss
the contract renewal terms and conditions after I get at least 2 offers from 2
different suppliers in Beirut with new delivery conditions and payment terms.

 I will start first by thanking Mr. Oneissi for all his great efforts and contributions
towards our hotel.

 I will follow an open approach by informing Mr. Oneissi that I am looking for a
better price as I already did my research in the market where I was able to find
better deal, 17$/kg and 20$/kg.

 I would ask a lot of questions.

 I would take a break and consult with my team before giving a counter proposal by
playing poker (Could be bluffing with the delivery terms of the alternative supplier)

 I would never accept the first offer

III- CLOSING THE DEAL

For a past transaction, describe in details what obstacles you have been encountered
during the closing process and in case you face them today in any negotiation what will
be the tools (skills) you are going to use to overcome them:

To Summarize:

 We have agreed to price the grilling meat for 17$/kg and the Imported Lamb for
21$/kg
 New delivery terms would be any day of the week
 Payment terms will be performed every 90 days

This course helped me to overcome the following obstacles when closing the deal

 Getting emotional during the negotiation process which led to break some deals
with various suppliers
 Sensitivity to time, meaning that I’m not always punctual which results in not
getting the deal
 Meeting the wrong person, meaning not the decision maker which may disrupt any
deal between both parties
 Never take a break when needed to be able to think and analyze better the current
situation

Here’s a summary of what I learned from this course:

1- Listen for key concept

2- Accept your limitations
3- Practice, practice & practice