Problem
The Piano
When shopping for a used piano, Jamie Carragher answered a Kijjiji ad. The piano was a beautiful upright in a massive walnut cabinet. The seller, Gary Neville, was asking $1,000, and it would have been a bargain at that price, but Jamie had received a $700 tax refund and had set this windfall as the limit that he could afford to invest. He searched for a negotiating advantage. Gary is not willing to sell the piano for less than $400.
He was able to deduce several facts from the surroundings. The piano was in a furnished basement, which also contained a set of drums and an upright acoustic bass. Obviously, Gary was a serious musician, who probably played jazz. There had to be a compelling reason for selling such a beautiful instrument.
Jamie asked the first, obvious question, "Are you buying a new piano?" Gary hesitated. "Well, I don't know yet. See, we're moving out of the province and it would be very expensive to ship this piano clear across the country."
Jamie: "Did they say how much extra it would cost?"
Gary: "They said an extra $300 or so."
Jamie: "When do you have to decide?"
Gary: "The packers are coming this afternoon"
Task
A. Provide the BATNA for Gary and the BATNA for Jamie.
B. Which strategy should have been employed by Gary and by Jamie? Why?
C. Based on the information in the case, what is the resistance point for both parties?
D. How could advance planning helped Jamie obtain the piano at his desired price?
E. Name one tangible and one intangible factor of this negotiation