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NEGOTIATION Paige Turner – Bestbooks Case. Paige Turner – Best books Contract negotiation between an author and a book company. 8 issues to negotiate.

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Presentation on theme: "NEGOTIATION Paige Turner – Bestbooks Case. Paige Turner – Best books Contract negotiation between an author and a book company. 8 issues to negotiate."— Presentation transcript:

1 NEGOTIATION Paige Turner – Bestbooks Case

2 Paige Turner – Best books Contract negotiation between an author and a book company. 8 issues to negotiate over. Point totals are on the back. DO NOT TALK ABOUT POINTS, but realize that you want to maximize your point value. You have 30 minutes to reach an agreement CORRECTION: Bestbook’s point sheet has wrong header, rest of the page is ok

3 Solution What is the max point value for Turner’s Agent? What is the max point value for Bestbooks? Who has the highest point total?

4 IssueTerms in Contract BestbooksTurnerTotal Royalties15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,000 2,000 7,000 7,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10, ,000 2,000 3,000 4,000 5,000 4,000 3,000 2,000 1,000 5,000 5,000 5,000 Fixed sum Number of print runs for the book ,500 3,000 2,500 2,000 1,500 3,500 3,000 2,500 2,000 1,500 7,000 5,000 3,000 Compatible Number of weeks that Paige has to promote the book ,000 2,500 2,000 1,500 1, ,100 2,300 1,500 Variable Sum

5 IssueTerms in Contract BestbooksTurnerTotal Number of books ,000 1,500 2,000 2,500 1,000 1,800 2,600 Variable sum Advance$0 $15,000 $30,000 $45,000 $60,000 5,000 4,000 3,000 2,000 1, ,500 3,000 4,500 6,000 5,000 6,000 7,000 Variable sum Number of countries where the book will be distributed ,000 3,500 3,000 2,500 2,000 4,000 3,500 3,000 2,500 2,000 8,000 6,000 4,000 Compatible Number of book clubs that will adopt the book ,500 6,000 4,500 3,000 1,500 5,000 4,000 3,000 2,000 1,000 12,500 7,500 2,500 Compatible

6 Issues Fixed Sum: distributive, best thing to do is trade off Variable Sum: integrative, potential to optimize mutual gain. Gaining information from each other would lead to both sides getting maximum amount of points. Compatible: integrative, both sides have the same interests

7 IssueTerms in ContractBestbooksTurnerTotal Royalties15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,000 2,000 7,000 7,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10, ,000 2,000 3,000 4,000 5,000 4,000 3,000 2,000 1,000 5,000 5,000 5,000 Fixed sum Print runs ,500 3,000 2,500 2,000 1,500 3,500 3,000 2,500 2,000 1,500 7,000 5,000 3,000 Compatible Weeks of Promotion ,000 2,500 2,000 1,500 1, ,100 2,300 1,500 Variable Sum Number of books ,000 1,500 2,000 2,500 1,000 1,800 2,600 Variable sum Advance$0 $15,000 $30,000 $45,000 $60,000 5,000 4,000 3,000 2,000 1, ,500 3,000 4,500 6,000 5,000 6,000 7,000 Variable sum # Countries ,000 3,500 3,000 2,500 2,000 4,000 3,500 3,000 2,500 2,000 8,000 6,000 4,000 Compatible # Book Clubs ,500 6,000 4,500 3,000 1,500 5,000 4,000 3,000 2,000 1,000 12,500 7,500 2,500 Compatible Splitting Bestbooks Turner Total 40,600

8 IssueTerms in ContractBestbooksTurnerTotal Royalties15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,000 2,000 7,000 7,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10, ,000 2,000 3,000 4,000 5,000 4,000 3,000 2,000 1,000 5,000 5,000 5,000 Fixed sum Print runs ,500 3,000 2,500 2,000 1,500 3,500 3,000 2,500 2,000 1,500 7,000 5,000 3,000 Compatible Weeks of Promotion ,000 2,500 2,000 1,500 1, ,100 2,300 1,500 Variable Sum Number of books ,000 1,500 2,000 2,500 1,000 1,800 2,600 Variable sum Advance$0 $15,000 $30,000 $45,000 $60,000 5,000 4,000 3,000 2,000 1, ,500 3,000 4,500 6,000 5,000 6,000 7,000 Variable sum # Countries ,000 3,500 3,000 2,500 2,000 4,000 3,500 3,000 2,500 2,000 8,000 6,000 4,000 Compatible # Book Clubs ,500 6,000 4,500 3,000 1,500 5,000 4,000 3,000 2,000 1,000 12,500 7,500 2,500 Compatible Least Optimal Bestbooks Turner 12,500 Total 29,000

9 IssueTerms in ContractBestbooksTurnerTotal Royalties15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,000 2,000 7,000 7,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10, ,000 2,000 3,000 4,000 5,000 4,000 3,000 2,000 1,000 5,000 5,000 5,000 Fixed sum Print runs ,500 3,000 2,500 2,000 1,500 3,500 3,000 2,500 2,000 1,500 7,000 5,000 3,000 Compatible Weeks of Promotion ,000 2,500 2,000 1,500 1, ,100 2,300 1,500 Variable Sum Number of books ,000 1,500 2,000 2,500 1,000 1,800 2,600 Variable sum Advance$0 $15,000 $30,000 $45,000 $60,000 5,000 4,000 3,000 2,000 1, ,500 3,000 4,500 6,000 5,000 6,000 7,000 Variable sum # Countries ,000 3,500 3,000 2,500 2,000 4,000 3,500 3,000 2,500 2,000 8,000 6,000 4,000 Compatible # Book Clubs ,500 6,000 4,500 3,000 1,500 5,000 4,000 3,000 2,000 1,000 12,500 7,500 2,500 Compatible Optimal solution Bestbooks Turner Total 52,200

10 Takeaway Identify people’s needs and wants as well as your own Realize when there is potential for an integrative solution


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