Name: Maudi Hijriatin

Student ID: 29121151

Final Exam Negotiation

A. The Negotiation
In early 2021, my friend and I decided to open a seafood restaurant business in
Medan, North Sumatra. Before opening a business, we prepare to find a supply of raw
materials, determine an operational system, and formulate a marketing strategy for the
company. After discussing, we divided the work where I oversaw finding the supply and
distribution of raw materials; my friend determined the strategy and operational system.
Because the raw material for our restaurant is seafood, of course, I went along the
coast in Aceh and North Sumatra to get a lower price. After the survey, we agreed with
seafood suppliers on the coast of West Aceh and Nagan Raya to supply various seafood
such as mangrove crabs, clams, kelong shrimp, squid, and fresh fish on the condition that
the mixed seafood above must arrive at the restaurant alive.
After getting a supplier with a suitable price, I looked for a distributor who was
willing to distribute various seafood. It's not easy because not all travel freight forwarders
want to accept seafood. After all, it will emit a pungent smell. After looking for several
distributors, one distributor is willing to send the goods. However, the price set is
relatively high in Rp 28.000/kg range. While if you want to profit, the maximum
distributor price is Rp 19,000/kg. Therefore, I tried to negotiate with the distributor.
"For the shipping price can't be reduced, sir? The price range is Rp 15,000. "I tried to
bargain the price on the distributor.
"I can't give you for that price; this is seafood. When we bring this item, automatically
other items cannot be put into this car,” said the distributor.
"Okay, I understand. Please reduce it, sir. Could you not make it in Rp 28.000/kg?
Honestly, it's too high for the shipping rate between Nagan Raya-Medan, which is usually
IDR 10,000/kg,” I said to the distributor.
"How about the price of IDR 25,000/kg?" said the distributor.
"Still high, sir, at the price of Rp. 20,000/kg, I still lose, sir," I said again.
 "Yes, the last deal is IDR 22,000/kg. If you don't want it, you can look for another
distributor. That's if anyone wants it," said the distributor and then left me to think hard.
If the expedition party is not willing to become a distributor, the alternative is to use our
car for the distribution of raw materials. However, using our car will be more detrimental
because the road from Nagan Raya to Medan cannot be smooth. And the risk of delays in
goods resulting in seafood can die on the way. However, if it is priced at Rp. 22,000/kg, it
seems that we will not make a profit.
I contacted my friend to ask his opinion. Then asked him to recalculate the capital
we had to spend on this distributor. Whether at the price of 22,000 can still make a profit.
My friend argues that it is better to travel than a private car. But at that price, we will not
get a profit. To overcome this, we reduce some operational costs so that the calculation
will make a profit if it is below Rp 24,000/kg.
After discussing, my friend and I used an expedition service for Rp. 22,000/kg.
Using BATNAs, namely distributed by private car, it is better to use an expedition
service. This is based on the risk we estimate.
Based on the above negotiations, the trap negotiated is walking away from the
table. This happened because the distributor knew that I needed their services, so
something like this happened. And this negotiation goes distributive because there is only
one issue, and we compete to claim the best deal for ourselves.

The following is the ZOPA diagram for the above negotiations:

Reservation price: Target Price :
Rp 22.000/kg Rp 25.000/kg

Distributor
No Zopa
Resto

Target price: Reservation Price:

Rp 15.000/kg Rp 19.000/kg
 Change to :

Reservation price: Target Price :

Rp 22.000/kg Rp
25.000/kg

Distributor
Zopa
Resto

Target price: Reservation Price:

Rp 15.000/kg Rp 24.000/kg

B. Proposal Improvement
1) My trap in that negotiation is walking away from the table. The distributor
rejected my offer and remained focused on the price he charged. This happened
because he knew that no other distributor wanted to be a seafood distributor. She felt I
needed them, so they increased the price to double the cost of the standard delivery
service.
2) Proposal to improve.
Several things that can be improved to negotiate in the future:
 Survey and research about other parties. This is important so that we can
arrange it well.
 Offer many offers to the other party to consider the request we provide to
them to reach an equally profitable deal.
 Support the offer with facts. To convince the other party, we must argue with
our prepared facts. so that negotiations will be more effective.
3) Show how the proposals will eliminate the traps.
 When we research other parties, we will know much information about them.
We know what they need; we learn about their BATNAs and reservation price
to make a deal based on that.
 When we offer other offers, such as delivering goods of at least 30 kg or a
contract with the distributor for six months, they do not feel disadvantaged,
and we get a price according to the target that we set.