The Bake Shop Shuffle
Frank Riley has done something no one ever expected him to do; he put a for-sale sign in the window of his bake shop. The locals, none more than Beverly Alvarez, love Frank’s delicious cakes and pastries. But Beverly is more than just a sweet-tooth devotee; she also has an eye for sound investments. One evening after closing up shop, Beverly approaches Frank looking to negotiate a deal. She would like to buy the bakery.
For this scenario, you will engage in a distributive argument in the assigned role of either Frank or Beverly. I was given the role ofBeverly Alvarez:
You have been a patron of Frank’s bake shop for many years, and you know he has always had a faithful clientele and made a good living. You have a few recipes of your own and are quite sure that you can keep the business just as successful. However, because of your limited resources, you cannot afford to pay more than $40,000 in the next two weeks. You are expecting more money to be available in three weeks, however. As such, you are more concerned with the cost of the property and the equipment inside than you are about the time it takes to close the deal.
You have the following priorities, listed from greatest to least. In the parentheses next to each, your desired goal is on the left, and your maximum concession is on the right. Try to strike a deal that satisfies your priorities and is as close to your desired goal as possible.
1. Property – ($30,000–$50,000)
2. Equipment – ($1,000–$4,500)
3. Time – (1.5 months–Immediately)
You should make notes to guide you in your role during the negotiation. Remember, you are not allowed to deviate from your prescribed role of Beverly Alvarez.
In a cohesive response that addresses the following:
o What was the hardest part about reaching a settlement?
o What strategies did you employ to counter tactics?
o What concessions did you make?
o What would you do differently if you could or looking back?
o What is the most important thing you learned from the experience?
