Description of my previous negotiation (Integrative Approach)

My previous big negotiation experience happened when I was still in

my undergrad studies at Parahyangan Catholic University, on that time I was
given an opportunity to be an production manager in one of students
organization event. One of my job descriptions was to get a venue for the
event. Since it was a concert, my options were limited and its kind of tight in
the budget too. So, after searched the venue availability in Bandung, I found
the only suitable venue for our event but the price was too high and its time
for me to negotiate with the management team of that venue. Here are the
details of my negotiation process:
Players:
Myself as the representative of the concert event committee
The manager as the representative of the Venue Management Team
Issues Negotiated:
Price of the venue
Date for the concert and the usage
Facilities that venue management provide
Position of Each Player:
My position at that time was I have a limited amount of time to fixed the
negotiation process, I only got two months to fix it and only got Rp.
85.000.000 million rupiah to rent the venue these budget based on last
year event which cost Rp. 75.000.000 to rent the venue.
I need to negotiate the terms of payment also since we didnt have the
money to pay them all in cash, I need to purpose to pay in 4 times which
include down payment, payment 1, payment 2, and payment 3.
They asked me to negotiate the deadline as close as to November
because the money will be in our hand around September or October.
The Manager Position at that time he have another potential buyer at
that time, but they didnt pay the down payment. So, its fair for him to
put them off if there was another buyer who pays the down payment
first. The manager welcoming another interested parties as long as they
reach an agreement with him. He was also afraid in making deals with
college student because of previous bad experiences.

Negotiation Process:
Chronology of the negotiation
My first attempt at negotiation began on first week of May 2013, I went
to the venue and start to express my interest in rent the venue, and started
to ask about the price, availability, and facilities. At that time there was
another parties that interest in rent the venue but they didnt pay the down
payment, the manager state that if we want to rent the place we need to be
fast. The manager agrees to negotiate and submit their offering letter the
day after the first meeting. The first offering from the manager was around
120 million rupiah with 3 payment terms and a list of facilities. I think that it
was too expensive and I think it will be polite if I negotiate by face-to-face
meeting to express our interest and commitment. So, after the manager
submit the offering letter we just go to the venue and start to lobby the
manager to get the lowest price. I did the negotiation in 5 round or meeting,
which means that every week from May I meet the manager and finalize the
negotiation around the second week of June 2013.
My strategies and my counterpart strategies
Pre Round:
Each player introduces themself and their interest, at that time I ask
the base price and the manager will send me the offering letter
Week 1:
After I received the offering letter, I started to negotiate it within a
price that my parties would approve. The manager first offering letter was
120 million rupiah with three times of payments, 10 million rupiah for the
down payment and 50 million rupiah a month after the down payment, and
the rest must paid a month before the event. At that time I only talks about
the price because I think it was too expensive. So, I ask the manager to
reevaluating the value and send me the next offering letters.
Week 2:
After next offering letter came, I started the next round of the
negotiation. The second offering letter was come the price was reduced to
102 million rupiah with the same terms. At that time, I think it was still too
far from our budget, so I state that I only have budget as same as last year
budget, which was 75 million rupiah. The manager seems to rejecting the
offer in that level of price but he ready to reconsider with his team because I
said that if the price was acceptable I could pay the down payment as soon
as the MOU was signed.
Week 3:
The next offering letter was come in 85 million rupiah and it seems like
a reasonable price, but we cant use all the facilities, I argue to the manager
and the tense of negotiation has risen up. After one hour of tense negotiation

the manager seem to accepting the offer but under certain condition, he can
adjust the price and all the facilities but he asked for extra incentive money
for his team.
Week 4:
The final offering letter was come, this time the problems was the term
of payment. The price was 78 million rupiah but he asked me to pay in July or
August. So, I negotiate the manager and increase the incentive money, and
thankfully he and his team agree.
Week 5:
The terms and agreement was finalized in these week and both parties
was ready to sign the MOU for it and fulfilled each other duty. At this time I
also paid the down payment as my promise.
Result
The result I got a fair price for the venue which around 80 million
rupiah (that include the incentive money), and fulfill the terms in MOU so in
my point of view is win win negotiation.

Proposal Improvement
Identify traps/ biases
There was several Traps/Biases that occurred during the negotiation which
are:
A. Winners Curse
Because the lack of information, I didnt know how much this year price
actually, all I did was estimating and paid too much for the venue. In the
week 3 I actually reconsider of paying 85 million, which was a mistake if I
know I can get a venue in 80 million (include the incentive money).
B. Walking away from table (Hubris)
When the tension risen up, my negotiation almost failed because the
manager wants to walk out, at that time I argued about the price. I can get
out from this situation by calming the manager and he started to open the
talks about incentive money.
Identify area of Improvement
To improve my negotiation based on what I had learn in class was:
a. I need learn more about my opponents what he wants
b. I need to make the first offer
c. Trust was important, and always keeping the trust but never begging for
it
d. Improve my BATNA, since at that time I didnt have another options I cant
improve my BATNA
Proposal of improvement
Learn more about how to interact with other people and gaining their
trust.
Always search for another alternatives of plan A did not work
Try to reveal information about the counterparty wants.