TexOil Negotiation Case
Reflection Journal: TEXOIL CASE Summer 2015
For the Texoil negotiation, I was assigned the role of the Service Station Owner. As such, my main objective was to sell the station and get the best possible agreement. My BATNA was
$518,000, which accounted the present and the next two years expenses ($478,000) plus half of the year salary upon return from the trip ($35,000). My asking price was 650,000 explaining to
Texoil that the market price was around $800,000. The benchmark was the cost of constructing the new gasoline ($650,000) plus other costs (years of permits, land construction, loss of customer during that timeframe).
My main strategy on this deal was to first share the information to set a positive tone of being
“forthcoming and with genuine interest” to sell to Texoil due to the long term partnerships these past 12 years. I was willing to tell the story about why we are selling, what were the plans for the boat trip and the future plans upon returning. Then, I ranked my priorities price and relationship.
Finally, I wanted to go into the negotiation knowing my target price (hoping for$650K) and my reservation price ($553).
By not reaching an agreement, I have mixed feelings in the outcome. In one hand, sometimes it takes a few more conversations to solidify a deal (more talking not necessary means coming into agreement). In the other hand, I’ve felt that this negotiation was hampered by having unrealistic assumptions about what the other can afford and not been able to find a common BATNA. By focusing exclusively in our own needs, we missed the opportunity to do much better than our respective BATNAs.
A positive note was that we had a lot of variation which resulted on creating a rich conversation.
An interesting fact was that at the beginning of the conversation, I felt in the dark about knowing
Texoil BATNA since I wasn’t sure about their assumptions.
As the seller, I said my asking pricing and provided the context. However, when I saw that the
buyer
For the Texoil negotiation, I was assigned the role of the Service Station Owner. As such, my main objective was to sell the station and get the best possible agreement. My BATNA was
$518,000, which accounted the present and the next two years expenses ($478,000) plus half of the year salary upon return from the trip ($35,000). My asking price was 650,000 explaining to
Texoil that the market price was around $800,000. The benchmark was the cost of constructing the new gasoline ($650,000) plus other costs (years of permits, land construction, loss of customer during that timeframe).
My main strategy on this deal was to first share the information to set a positive tone of being
“forthcoming and with genuine interest” to sell to Texoil due to the long term partnerships these past 12 years. I was willing to tell the story about why we are selling, what were the plans for the boat trip and the future plans upon returning. Then, I ranked my priorities price and relationship.
Finally, I wanted to go into the negotiation knowing my target price (hoping for$650K) and my reservation price ($553).
By not reaching an agreement, I have mixed feelings in the outcome. In one hand, sometimes it takes a few more conversations to solidify a deal (more talking not necessary means coming into agreement). In the other hand, I’ve felt that this negotiation was hampered by having unrealistic assumptions about what the other can afford and not been able to find a common BATNA. By focusing exclusively in our own needs, we missed the opportunity to do much better than our respective BATNAs.
A positive note was that we had a lot of variation which resulted on creating a rich conversation.
An interesting fact was that at the beginning of the conversation, I felt in the dark about knowing
Texoil BATNA since I wasn’t sure about their assumptions.
As the seller, I said my asking pricing and provided the context. However, when I saw that the
buyer