1. Paige Turner – Bestbooks Case
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. 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

5. 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

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. 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

8. 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

9. 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

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