Boardroom, 2 Weeks Earlier

Mr. Ritchie is set to conduct his last meaningful negotiations with Margaret Peake before she retires. There is a lot at stake for Carl Ritchie, because if he loses this deal he will then be in a weak position when he contacts Mrs. Peake’s successor. Furthermore, this negotiating session comes right at the end of the financial year for Mr. Ritchie’s company.

Carl RITCHIE: I hope that we can reach an agreement today.

Margaret PEAKE: I hope so too, but not on any old terms. Please don’t forget that I’m your company’s most important customer in this region.

Carl RITCHIE: That’s true, and a great deal of research has already gone into our proposal.

Margaret PEAKE: Research into what? Not into your competitors, that’s for sure.

Carl RITCHIE: We still have to take materials costs into account.

Margaret PEAKE: I quite agree! That’s why I’ve brought along a full report on production cost trends in your business sector. I was also hoping that you’d be able to explain a few things, as I know that certain cost reductions have not yet been passed on in your selling prices.

Carl RITCHIE: We’ll look into that.

Margaret PEAKE: If I were in your shoes, Mr. Ritchie, I’d look at it very carefully. Remember that as president of the buyers’ association for our sector, colleagues constantly ask me for advice as to which supplier they should choose.

Carl RITCHIE: I’m aware of that and, as I’ve told you, I really want to reach an agreement today, and since our…

Margaret PEAKE: I understand and I’d have been delighted to do a quick deal myself, but as far as we are concerned, we’re not in a rush. I think that I’ll take a little time to reassess the proposals on the table and maybe even leave the issue for my successor to deal with after the holidays.

Carl RITCHIE (irritated): Right, fine.

Margaret PEAKE: However, you do need to be aware that if you do not offer us a satisfactory deal this time, I shall not be in a position to encourage my successor to consult you over our big project that is in the pipeline for next year.

Carl RITCHIE (ever more ill at ease): Naturally.

Margaret PEAKE: Ultimately, Mr. Ritchie, I’m only raising this pricing issue because I expect our company to be treated fairly. In my place, you’d expect exactly the same.