Tom and Brandy have been friends since their time in middle school. Tom, a banker, has a used car in which Brandy is interested and the two are faced with the task of negotiating the price of the car. It is a Japanese manufactured, fairly used Toyota Mark X with an engine Configuration. V6 DOHC, a bore x Stroke (83.0 x 77.0) mm, and an engine capacity of 2,499 cc. Tom purchased the car two years ago at $200,000 and wish to let go of it at $180,000. Brandy, a social media influencer or social media strategist, aspires to purchase the car at the price of $17,000 because he believes it is in fairly good shape and has the right fuel capacity to assist him in his online marketing ventures as well as other business. Therefore, the primary objective of the negotiation is to come to a consensus about the price of the car.
Tom believes that the car is still in too good a shape to let it go for anything less than $180,000. Additionally, he is only forced by circumstances to action his car because he would not have sold it otherwise. At times people have to sell off their assets to acquire cash flow for other ventures (Dellandea, Gilly, & Graham, 2016). Moreover, he has delayed with his mortgage payment and it is quickly piling up and therefore he would like to offset it before it reaches an alarming rate. On the other hand, Brandy would like to own the car because he believes it is time for him to have one and thinks although uses, the car is good enough to purchase. However, although the car is still in good shape, he will have to repaint it and purchase new rhymes for it because the ones available are worn out. Additionally, he will need to purchase new seat covers for the car. Therefore, he would like to quote a price that will be fair enough for him in view of all the improvements he will need to make to the car.
Delegate your assignment to our experts and they will do the rest.
Alternatively, Tom can choose to keep his car and acquire money from other sources to offset his mortgage or he can instead make the improvements to his car before selling it to Brandy or any other person. On the one hand, keeping the car means servicing it and spending more money to maintain it while working harder to acquire funds from other sources besides his salary (Ampatzogloua et al., 2015). On the other hand, making improvements to the car will cost him $100,000 and this will go into the price of the car because it will be easier to sell it at $180,000. On his part, Brandy can choose to buy a brand new car at the cost of $200,000 or he can choose to suspend his desire to have a car to a later date when he is more prepared to purchase one.
While suspending his desire to have a car seems viable, he is in dire need of one and at a point in his life career where he needs to work for long hours and travel long distances, returning home in the wee hours of the night. Buying a new car is expensive for him and he may need to save a little more to reach his goal. Tom and Brandy have been very good friends for a long time since middle school and they share the same neighborhood and would like to maintain their close ties even though they work in distinct and unrelated fields. They are particularly bothered in case the negotiation deteriorates their relationship. While Tom has a deep respect for Brandy for the work he does, Brandy depends on clients like Tom to make ends meet in his social influencing work. Therefore their connection is socially and economically mutually exclusive. Their families are close and present significant external pressure to their negotiation.
Overall, the best alternative to the negotiated agreement for the two of them is mutually exclusive. Brandy proposes to purchase the car at $175,000 and make the repairs it needs by himself so that Tom can have his money and not have to make the repairs to the car. He hoped to top up the extra $5000 and use it to make the car. I believe Brandy is a better negotiator because he took the initiative to propose a lower cost for the purchase of the car when Tom was adamant about compromising. Therefore, the deal ended with Brandy acquiring the car at $175,000 and Tom managed to pay off his mortgage so that it did not inflate.
References
Ampatzogloua, A., Ampatzogloua, A., Chatzigeorgiou, A., & Avgerioua, P. (2015). The financial aspect of managing technical debt: A systematic literature review. Information and Software Technology, 64 (4), 52-73. doi.org/10.1016/j.infsof.2015.04.001
Dellandea, S., Gilly, M., & Graham, J. (2016). Managing consumer debt: Culture, compliance, and completion. Journal of Business Research, 69 (7), 2594-2602. doi.org/10.1016/j.jbusres.2015.10.140
