Margaret Peake’s Office, 7 Years Earlier

The various elements of Carl Ritchie’s offer are now clear and the solution proposed meets his customer’s needs nicely. Now the discussion turns to the price.

Margaret PEAKE: You really need to do much better than that, Mr. Ritchie. For these products, your first offer is $100 per square meter, yet most of your competitors are offering prices below $96. Let me tell you quite bluntly: You really are going to have to sharpen your pencil.

Carl RITCHIE: It’s true that some of our competitors will do anything to gain market share, but that won’t last. (Margaret Peake remains silent.) Let’s see…I do want to make a deal, but anything lower than $99 really would be a problem.

Margaret PEAKE: Come on, Mr. Ritchie, I am asking you for a serious proposal. I’m also very keen to do a deal, but at $99 you are not even in contention!

The sale was finally agreed to at $97.50.