Margaret Peake’s Office, 4 Years Earlier

Carl Ritchie has negotiated well. He has correctly assessed his customer’s real demand, set his own objectives, begun with a high initial demand, defended his proposal, demanded something in return for every concession, given ground in small steps, and locked in his customer’s commitment. Yet he is finding it impossible to seal the deal.

Margaret PEAKE: I’m going to make you a proposal, and it will be my final offer.

Carl RITCHIE: Take it or leave it, you mean?

Margaret PEAKE: You could put it that way.

Carl RITCHIE: I’m listening.

Margaret PEAKE: I’m prepared to spend $200,000 on this deal, but not a penny more. It’s up to you to tell me whether that’s of any interest to you.

Carl RITCHIE: No chance.

Margaret PEAKE (starting to close her files): In that case, Mr. Ritchie…

Carl RITCHIE: Wait! Surely we can reach a compromise?

Margaret PEAKE: I’m afraid we really can’t, Mr. Ritchie. I’d be delighted to do a deal with you, but I’ve told you the minimum terms we need for that. It’s now up to you to think it over and make a decision. Take your time.

Carl RITCHIE (trying to restate his case): Allow me to look again at your specific needs, and at the main benefits of our solution…

Margaret PEAKE (interrupting him): Mr. Ritchie, you know perfectly well what we need and I’ve fully understood your proposal. Either you can meet the price of $200,000 or you’d prefer me to do a deal with one of your competitors (smiling), on this occasion anyway. I’m sure we’ll meet again.

Carl RITCHIE: Perhaps I could offer you a better price, but not $200,000.

Margaret PEAKE (remains silent)

Carl RITCHIE: By paring my margin back to the minimum, I could perhaps drop the price to $208,000.

Margaret PEAKE: I appreciate your proposal, but I must repeat that I shall pay no more than $200,000. It’s entirely up to you, Mr. Ritchie.