Margaret Peake’s Office, 6 Years Earlier
Carl Ritchie is about to present Margaret Peake with his deal on some equipment. It is quite a commonplace product, for which a market price of $400,000 has been established. Carl Ritchie’s sales director has made it abundantly clear: “We need to improve our customers’ payment terms and obtain a 20% advance on any order.”
Carl presents his customer with an offer pitched at $430,000. He has thereby established a negotiating margin, which is clearly needed when dealing with a buyer of the caliber of Margaret Peake. As expected, the buyer protests, demanding a competitive price and, having argued and defended his offer, Carl Ritchie ends up proposing a compromise figure of $400,000. Everything seems to be ...
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