Business negociation case

Business negociation case

Palki Ltd is a French start-up company that sells all kinds of goods related to the Korean cultural wave in Europe.  Victim of their own success, they are searching to engage a contractor to manage their after-sales services.

Palkia Ltd Business Manager : Good morning ! As the business manager of Palki Ltd, I would like to thank you for accepting our invitation. This meeting has been called today to discuss the possibility to work together and to discuss some terms of the future contract between our two companies.

Gitina’s C.E.O : Good morning ! Our company truly wants to thank Palki Ltd for organising this meeting. As the C.E.O of Gitina’s company, I would personally like to have chosen us.

Palki Ltd Business Manager : You’re welcome. We have chosen your company because you are recognised for the quality of your services and you seem to be the best in your field. As you may know, we had huge problems recently with our after-sales platform on our online shop. Indeed, due to the lockdown, our activity has increased in the same time as delivery issues. That is the reason why we would like to buy your services. Without further ado, let’s discuss some points regarding the amount of the price to buy your services. Our company proposes to buy Gitina’s services for 250 000 euros.

Gitina’s C.E.O : Well… Has you have mentioned before, our company is recognised for the quality of our services. It seems that Palki Ltd has underestimated the price.

Palki Ltd Business Manager : Our company is aware that it could be a little bit surprising for you but this is a reasonable price compared to other companies that bought other Tunisian contractor services.

Gitina’s C.E.O : Yes, this is absolutely surprising as you said ! Such a proposal is definitively disrespectful ! Gitina company is old-established in the field of after-sales services and we were the leader on the Tunisian market for five years now.

Palki Ltd Business Manager : I understand that the price might be lower as your expectations but we are a small company that just launched its activities last year. Our budget is limited but we need your services…

Gitina’s C.E.O : … if your budget is limited, why would your company called for our services ? There are other companies that provide after-sales services for a such ridiculous price !

Palki Ltd Business Manager : I do agree with your statement but the reputation of our online shop is at stake…. What if we discuss the price later ? Let’s talk about the staff… According to our estimates, we need fifteen employees to work with us.

Gitina’s C.E.O : According to my estimates, it would be impossible to pay corretely fifteen employees if Palkia Ltd buy our services for 250 000 euros !

Palki Ltd Business Manager : Yes, but this is the starting price and you will receive 30% of the benefit of the company for which you perform.

Gitina’s C.E.O : I feel terribly sorry for you but you seem to not have any experience regarding business in general. I am losing my time discussing with you ! Goodbye !

Gitina’s C.E.O is angrily leaving the office of Palki’s Business Manager.

...