Alan Lewis is a salesperson for a company that provides website design services. He hasbeen negotiating with entrepreneurs who will soon open a new restaurant.

(a) Describe the information that Lewis should consider when deciding on his reservationprice for selling the services that the entrepreneurs will require.

(b) Describe the information that the entrepreneurs should consider when deciding on theirreservation price for buying website-design services from Lewis’ company.

(c) If Lewis’ reservation price is $22,500 and the entrepreneurs’ reservation price is$24,000, is a deal possible between the website design company and the entrepreneurs?If so, what would be the price range of possible deals?

(d) If Lewis’ reservation price is $22,500 and one of the entrepreneurs tells him that theirreference price is $21,000, what should Lewis focus on during the price negotiations?

Answer rating: 100% (QA)

a Answer As a seller your reservation price is the minimum price that you would accept for the product or service youre selling It is the bottom line and the least favorable outcome and the point at w... View the full answer