BAB$231$ NEGOTIATION EXERCISE

Instructions for Ontario Place

The music group $$The Pine Needles$$ has a hit album that is very popular with teens and pre$-$teens. They are planning a summer cross$-$country concert tour, and hope to perform three concerts over the Canada Day weekend in Toronto, at Ontario Place.

Like many music groups, The Pine Needles are somewhat demanding and they have some specific needs for the concert in Toronto. Ontario Place wants the group to perform on Canada Day because the concert will bring in a lot of revenue and build up the reputation of Ontario Place with young fans. While Ontario Place is willing to try to accommodate reasonable requests, it is a busy venue. Many demanding musicians perform there, and management cannot spend too much time catering to the whims of a single group.

The manager of The Pine Needles and the manager of Ontario Place are going to meet to negotiate the terms of a contract for the concerts.

Information$/$Instructions only for Ontario Place

You are the manager at Ontario Place who is responsible for negotiating the contract with The Pine Needles. Your boss, the owner of Ontario Place, expects you to make the best deal possible for Ontario Place, while booking The Pine Needles to play over Canada Day weekend. Your boss also expects you to keep their instructions to you a secret. Your boss expects these instructions to be kept confidential so that way their ability to negotiate the best deal with music groups is not compromised.

Your goal is to negotiate a contract with The Pine Needles that meets owner$$s instructions as set out below, without disclosing your instructions to the manager of the Pine Needles.

The owner of Ontario Place is not impressed by the stars that perform at his venue $$ he just wants Ontario Place to be profitable, and does not want to spend money on something if he doesn$$t have to$.$ He is not even much of a music fan, but is a big collector of concert memorabilia. In fact, at times he has given in on certain issues if he can get rare souvenirs for his collection.

While the owner is stubborn about spending money on what he sees as silly requests, he does understand that sometimes you have to spend money for the sake of the business. Changes to the dressing room are out of the question, however, because they take too much time and money, especially since the next performer is going to want something else.

The owner expects to net at least $$30$ per ticket and he knows that the most he can charge for a ticket is $$75,$ no matter how big the star is$.$ The venue holds $10,000$ seats. The owner wants to hold a contest in connection with the Canada Day concerts, in order to encourage advance ticket sales. The contest would allow every ticket holder to get a chance to win dinner with The Pine Needles before the show. In total, the owner would like there to be $5$ winners for each show, so The Pine Needles would have to agree to dinner with $5$ fans before each show.

The manager knows that the owner does not like to spend money to meet a performer$$s demands and that he will not change the dressing room. However, he may be willing to spend some money on decorations for the room $($if it does not require actual change$),$ and other items to keep the performers happy. The manager cannot agree to any terms of a contract without checking with the owner.