In this exercise, you will plan a vacation with another person. You should imagine that you are reasonably good friends with the other person. One of you will play the role of Carson; the other will play the role of Kyle. There are five issues to negotiate: Destination Hotel quality Mode of travel Length of stay Season These are the issues you will be discussing; you should not bring in other issues or concerns, even if you feel they may be relevant in real life. To facilitate your vacation planning, we have attached an easy-to-read chart that presents all of the issues and the value to you of each alternative. Although it may seem somewhat artificial to assign points to vacation plans, it is a convenient way to compare how you feel about the various alternatives. Your goal in this negotiation is to maximize the number of points for yourself. You may determine what type of agreement is best for you by referring to your chart on the attached page. Your chart defines what your interests are, all the possible ways you can plan the vacation, and how many points you would get for each alternative agreement. The five issues are listed, along with five different types of agreements for each issue. The number of points you will receive for each type of agreement is given in parentheses. Each issue has a different degree of importance to you, as indicated by the magnitude of the number of points you could gain or lose. Obviously, you prefer those alternatives that give you more points. You may match any of the five levels with any of the five issues. Thus, there is a huge number of possible agreements. Feel free to make notes or write on your point schedule. You can keep it with you in the discussion with the other person. It is important that you do not tell the other person the specific numbers on your point schedule, and do not physically exchange point schedules with the other person. This information is for your eyes only. This models real life situations. In real life, we do not have point's schedules. Please note that the two of you must reach an agreement on all five issues, or else you both will receive zero points. Please be aware of the time constraints that your instructor will provide. One member of each pair will be given a final contract sheet, which should be completed by both of you at the end of your negotiation for any settlement to be binding. 2 Vacation Plans/Role of Kyle POINT SCHEDULE Alternatives to be discussed Points (your preferences for the project) DESTINATION Northeast 0 Southeast 105 Midwest 210 Southwest 315 Northwest 420 HOTEL RATING 5-star 0 4-star 55 3-star 110 2-star 165 1-star 220 MODE OF TRAVEL Air 0 Car 20 Motorhome 40 reyhound 60 Train 80 LENGTH OF STAY 1 wk 0 1.5 wks 35 2 wks 70 2.5 wks 105 3 wks 140 SEASON Spring 0 Early Summer 65 Late Summer 130 Fall 195 Winter 260 This is 1st negotiation. Confidential Role Information for PAIGE TURNER'S AGENT Bestselling author Paige Turner is looking to change publishers and is entertaining the idea of signing a contract with Bestbooks. Paige abhors the business side of the literary world and has asked you, an up and coming agent, to hammer out a deal with the representative from Bestbooks. Your experience tells you that the negotiation between you and Bestbooks will hinge on the following eight issues: 1. Royalties (percentage per sale) 2. Contract signing bonus 3. Number of print runs for the book 4. Number of weeks that Paige has to promote the book 5. Number of books 6. Advance 7. Number of countries where the book will be sold 8. Number of book clubs that will adopt the book You would like to keep Paige on as a client, and you realize that the best way of doing this would be to get the best possible deal from Bestbooks and thereby establish yourself as a topnotch negotiator. Ideally, a successful negotiation will result in a contract that will be favorable to Paige on each of the eight abovementioned issues. You can evaluate your success in the negotiation process with Bestbooks by using the success table on the following page. You will notice that the issues differ in point values; consider the issues with the higher points to be more important to Paige. Issues that are concerned with money (royalties, signing bonus, advance, number of print runs of the book, number of countries where the book will be distributed, number of book clubs that will adopt the book) are quite straightforward: the more the better! Signing bonuses are so common you shouldn't have to negotiate for them (in fact, Paige has already decided how to spend this money that is why the advance is also important). The type of contract that Paige will have with the publisher is also important. Writers have become like sports stars; the value of their contracts tend to go up as they switch from publisher to publisher, although this needs to be weighed against the uncertainty that may also be involved in a switch. Basically, Paige wants to only write two books for Bestbooks in order to have the freedom to leverage publishers against each other in the future. Finally, Paige would rather spend time writing new books rather than promoting this book. Paige finds book promotion to be a boring, redundant task good books do not need promotion, and Paige is a great writer! Your goal is to obtain the highest possible score. It is quite probable that Paige would throw one of those famous temper tantrums if no contract would result from the negotiations. 2 CONFIDENTIAL SUCCESS TABLE FOR PAIGE TURNER'S AGENT Term in Contract Points Royalties points 15% 6000 13% 5000 10% 4000 7% 3000 5% 2000 Contract signing bonus $50,000 5000 $40,000 4000 $30,000 3000 $20,000 2000 $10,000 1000 Number of print runs for 5 3500 4 3000 3 2500 2 2000 1 1500 Number of weeks that Paige has to promote the book 35 100 30 200 25 300 20 400 15 500 Number of books 6 500 5 1000 4 1500 3 2000 2 2500 Advance $ 0 0 15,000 1500 30,000 3000 45,000 4500 60,000 6000 Number of countries where 14 4000 the book will be distributed 12 3500 10 3000 8 2500 6 2000 Number of book clubs that will 5 5000 adopt the book 4 4000 3 3000 2 2000 1 1000 This is 2nd negotiation. Reflect on your experiences negotiating in the these two Mini-Negotiation Exercises (#3 and#4)

• What was the outcome of each negotiation? Were you satisfied with the results?
• What do you feel you did well in each situation? What did your negotiating opponent do well?Who do you feel did a better job and why?
• How did these negotiations compare to the first two Mini-Negotiation Exercises (#1 and #2)?
• What would you have done differently? What could your negotiating partner have done differently? Explain why you feel this way.