Negotiations don’t always go according to plan. Disagreement is part of life. But to build lasting relationships, coping with failure is even more important than celebrating success. So in this show, we’ll examine a deal that does not get completed. We’ll look at making a final offer as well as expressing dissatisfaction and regret. In particular, we’ll focus on maintaining goodwill even when talks break down.
As you listen, pay attention to how Peter makes a final offer, how Maxine declines it, and how they both work to maintain goodwill.
Listening Questions:
1) What are Maxine’s reasons for staying firm on price?
Maxine is not willing to come down on her price because the market is “going nowhere but up,” that is, it is expanding, and because she believes she has got “tremendous value,” with “good people, good products, and a solid business plan.”
2) What does Peter say to justify not being able to pay more?
Peter says he must take into account “redundancies” in their business operations and factor in the “volatility” in the market. Redundancies refers to repetition or overlap. Volatility is a measure of quick or unexpected change in price, for example in a company’s stock price or in a market or industry. High volatility can make it difficult and risky to put a value on a company.
3) How does Maxine leave open the possibility for future cooperation?
Near the end of the conversation, Maxine says, “Yes, but, anyhow, I think we should explore other possibilities for working together.” Though they did not reach an agreement about a merger today, she is keeping the door open for further discussions about other possibilities and topics.
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