The Point of the Deal: How to Negotiate When Yes Is Not Enough by Mark Gordon;Danny Ertel

Author:Mark Gordon;Danny Ertel
Language: eng
Format: mobi
Published: 2009-11-13T16:46:00+00:00

Sue: I was thinking that we ought to open with offering to take on 20 percent of the damages-they can't get too mad if we start with $1 million. If we can get out of this with the relationship intact and taking on only 50 percent of the liability, I think that would be a win. At the end of the day, of course, rather than risk the relationship with our biggest customer, we would take on the whole $5 million as long as we could spread it out in credits over a couple of years.

Manager: Let's back up for a minute. Who actually has knowledge about what really happened with these parts? Is Bill fully up to speed?

Sue: He has spoken with their manufacturing and QA folks, so I'm sure he is briefed.

Manager: Yeah, but might it be useful to start the conversation with them by having our engineering, manufacturing, and QA folks and theirs all in the room together to do a thorough review of procedures and get as clear a common picture as possible about what went wrong where?

Sue: Yes, of course that would make sense, especially if we are talking about how to prevent failures in the future as we work on increasingly complex assemblies.

Manager: And that might be an ideal forum to discuss any other specification changes that could help enhance the reliability of our parts or simplify testing and quality assurance ...

Sue: But I'm worried that they will turn it into a food fight to prove that we were at fault and that we ought to pay for all the damages.

Manager: A very valid concern. Maybe it would make sense to set this up as a separate prior meeting with the engineers on how to avoid this problem in the future, and then follow it up with a meeting with Bill to talk though damages. Bill maybe a little more relaxed about sorting out the damages issue if he feels that we have taken this very seriously and have worked together well to ensure that this problem doesn't happen again, rather than thinking he needs to make this really expensive for us so it doesn't happen again.

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