Trane Supply Agreement


Hypothetical:  The #1 Salesperson at your Company has been awarded a huge contract to supply Trane 5 million widgets per year for 5 years to be used by Trane as components for their HVAC systems.  The price Trane has agreed to pay your Company for each Widget is $5 per Widget.  Your company’s cost for materials and sub-contractor labor to produce each Widget is $3 per Widget. 
What tools and techniques did you use to organize, structure, or otherwise guide the negotiation (ex. Agenda, set titles and roles, etc.)? Did your choice of organizational method/pre-planning assist or detract from your efficacy?
What did you notice about power and positioning? Any new insights into demographic distinctions?
Were you able to reach a deal or agreement? Why or why not?
What information would you want from the opposing party in an actual negotiation for these services and deliverables, and is that expectation realistic, in your opinion?
If a deal was struck, was the solution a win-win agreement? How would you describe the interaction between the teams (collegial, combative, etc.)?
What are two (2) nonmonetary concessions you might offer the other party to reach a mutually agreeable conclusion, and how would you assess the cost of these concessions in the context of a deal?
How would you apply lessons of the contract itself and the exercise to your future work projects, whether negotiations, management, or otherwise? For more information on Trane Supply Agreement read this:

Trane Supply Agreement

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