Paige Turner – Bestbooks Case Negotiation Paige Turner – Bestbooks Case

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

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?

Issue Terms in Contract Bestbooks Turner Total   Royalties 15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10,000 Number of print runs for the book 5 4 3 2 1 3,500 2,500 1,500 Compatible Number of weeks that Paige has to promote the book 35 30 25 20 15 100 200 300 400 500 3,100 2,300 Variable Sum

Issue Terms in Contract Bestbooks Turner Total   Number of books 6 5 4 3 2 500 400 300 200 100 1,000 1,500 2,000 2,500 1,800 2,600 Variable sum Advance $0 $15,000 $30,000 $45,000 $60,000 5,000 4,000 3,000 4,500 6,000 7,000 Number of countries where the book will be distributed 14 12 10 8 3,500 8,000 Compatible Number of book clubs that will adopt the book 1 7,500 12,500

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

Splitting Bestbooks 20300 Turner 20300 Total 40,600 Issue Terms in Contract Bestbooks Turner Total   Royalties 15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10,000 Print runs 5 4 3 2 1 3,500 2,500 1,500 Compatible Weeks of Promotion 35 30 25 20 15 100 200 300 400 500 3,100 2,300 Variable Sum Number of books 6 1,800 2,600 Variable sum Advance $0 $15,000 $45,000 $60,000 4,500 # Countries 14 12 10 8 8,000 # Book Clubs 7,500 12,500 Splitting Bestbooks 20300 Turner 20300 Total 40,600

Least Optimal Bestbooks 16500 Turner 12,500 Total 29,000 Issue Terms in Contract Bestbooks Turner Total   Royalties 15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10,000 Print runs 5 4 3 2 1 3,500 2,500 1,500 Compatible Weeks of Promotion 35 30 25 20 15 100 200 300 400 500 3,100 2,300 Variable Sum Number of books 6 1,800 2,600 Variable sum Advance $0 $15,000 $45,000 $60,000 4,500 # Countries 14 12 10 8 8,000 # Book Clubs 7,500 12,500 Least Optimal Bestbooks 16500 Turner 12,500 Total 29,000

Optimal solution Bestbooks 24100 Turner 29100 Total 52,200 Issue Terms in Contract Bestbooks Turner Total   Royalties 15% 13% 10% 7% 5% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Fixed sum Contract Signing Bonus $50,000 $40,000 $30,000 $20,000 $10,000 Print runs 5 4 3 2 1 3,500 2,500 1,500 Compatible Weeks of Promotion 35 30 25 20 15 100 200 300 400 500 3,100 2,300 Variable Sum Number of books 6 1,800 2,600 Variable sum Advance $0 $15,000 $45,000 $60,000 4,500 # Countries 14 12 10 8 8,000 # Book Clubs 7,500 12,500 Optimal solution Bestbooks 24100 Turner 29100 Total 52,200

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