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Description

Please make sure to apply a communication model to structure a vendor negotiation conversation, build an outline for the conversation, and write the conversation.

Read the following case study scenario:

You are the buyer at Denigee’s Outdoor Superstore, a nationwide chain of home and patio stores. The vendor representative from “Patio Expressions” calls you to tell you that this month’s major delivery of Spring patio accessories is going to be a month late due to a problem with shipping. The vendor wants an extension on the purchase order, so he can deliver the merchandise when it arrives at his distribution center.

Instructions

Review the details of the case study scenario in the document below. Use the information to analyze your business position. Think about what you need to consider, what you need to communicate, and what do you need to negotiate. In this scenario, you have the benefit of knowing more about the vendor’s position than you would in a “real life” negotiation. Use it to your advantage.

Vendor Negotiation Information: Case Study Click for more options

Apply what you’ve learned to develop an entire dialogue. Use the negotiating techniques you learned, including active listening and body language, to create your negotiation conversation.

present your dialogue and explain how the negotiating techniques and structured steps used in your vendor conversation will result in the predicted outcomes.

Vendor Negotiation Information: Case Study
Your position as the Buyer for
Denigee’s Outdoor
Superstore – What You
Know:
The Patio Expressions Vendor
Position – What He Knows:
General Information:
This is a major shipment for the
vendor and an important delivery
for your business.
This shipment represents 10% of
the vendor’s total season deliveries.
The markup for this vendor is
generally 56%, but on this purchase
order it is only 50%.
The vendor representative knows
about the markup rate issue on the
purchase order and can
(reluctantly) negotiate a 2.5%
discount on the cost.
You know that the competition has
this same merchandise on order for
this month’s delivery.
The current sales trend for this
vendor is down 2% compared to
plan.
The reason for the shipping delay is
a mix-up in the vendor’s warehouse
and the vendor knows he has
already shipped your competitor’s
initial order.
The vendor’s next month’s
deliveries are due in his warehouse
in two days. He has refused
previous requests by the
competition for early shipment, due
to a national ad that is running next
month.
The current sales trend for Patio
Expressions merchandise is down
4% across the country.
Warm weather arrived early in
many parts of the country, and
customers have already been
looking for patio accessories.
The buying office made an error
writing the purchase order and
input an incorrect markup. Since
this is such a big order, it will
affect your markup % for the
season in this category.
There will be a 30-day selling
window where the competition has
the merchandise to sell before your
merchandise arrives in the store.
You want the vendor representative
to make more frequent store visits
to help customers in clinics.
The vendor wants more shelf space
and better presentation in
Denigee’s Outdoor Superstore.
You are concerned that late
deliveries will cause stock issues,
lost sales, and dissatisfied
customers.
The vendor wants to discuss
expanding business into your new
stores and adding additional styles
in your existing stores.
There is another delivery from this
vendor that is due to ship next
month. It is a smaller delivery,
but it includes many unique
specialty patio accessories.
The specialty patio accessories
are new and are running in a
national advertising campaign
paid for by the vendor’s
company.
The vendor has a problem with the
quality of some of the merchandise
previously shipped from overseas,
causing unexpected customer
returns and lost sales.
Both you and the vendor want more
exposure to merchandise in the
store, but you don’t want the same
types of exposure.
Both you and the vendor are
concerned about the economy, but
feel positive about well-priced and
saleable Spring merchandise.

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