THE BENTLEY CONVERTIBLE

Instructions for the Sales Agent

You are a British sales agent who sells antique automobiles on commission. Mr.
Henry Soles has asked you to find a buyer for his 1927 custom-made Bentley
convertible, which has been reconditioned and is in fine, restored shape.

Mr. Soles' convertible is the only car of its kind, and it is impossible to determine a
market value for it. The antique car market is complex and whimsical. Prices depend
on the popularity of a particular model (usually a function of its aesthetics), its rarity,
its body condition, the percentage of its parts that are original, and its running
condition. Old Rolls Royces as a rule fetch considerably more than Bentleys. For
example, in a recent edition of Hemmings Motor News, Rolls Royces were advertised
at $8,000 to $150,000, while Bentleys ranged from $5,000 to $45,000. Usually, a
given model in a given condition will have a well-determined price, but again, Mr.
Soles' car is unique. He has been trying to sell it for three years. Early on, Mr. Soles
received an offer for 26,000 pounds that he rejected as too low. Since then, the highest
offer he has received has been for 20,000 pounds from BAT Enterprises, which wants
to use the car for commercial purposes. That offer is still outstanding.

Since Soles can sell it to BAT without paying any commission, he is unwilling to pay
any commission on the first 20,000 pounds of a sales price. However, he has agreed to
pay, and you have agreed to accept, a commission of 20% of the amount by which any
sales price you can arrange exceeds 20,000 pounds. This is contingent on you selling
the car in the next two weeks, before BAT's offer expires.

You have at last found a potential customer, an American widow named Mrs. Austin,
who comes from Texas, and who is here on holiday. She has had a mechanic drive and
inspect the car. Mrs. Austin has asked her personal secretary to discuss with you the
possibility of Austin buying the car. Mrs. Austin has told Mr. Soles that her secretary
has full authority to buy the car or not. You hope to make a sale, not only for the
commission but also for your business reputation. Mr. Soles has given you full
authority to make a sale at any price above 20,000 pounds. As yet, you have offered
no asking price, and have said merely that the price is negotiable.

You are about to meet Mrs. Austin's secretary. Prepare for this negotiation.

1
Record of Negotiation
Name of Buyer:
Name of Seller:
Your role (check one): Buyer Seller
Sequence of Proposals
Suggested by
Offer
Thoughts, reactions and comments
Final Agreement (if any) or last offers if no agreement:
Comments:

Before Negotiating This Contract provide the instructor the following:

1. Your min, max, and target/objective price positions.

2. Your WOP
3. Your BATNA
4. Your estimate of the other side’s WOP.
5. Your estimate of the ZOPA (Range)
6. Your estimate of the other side’s BATNA