Moms.Com Post-Negotiation Analysis

MOMs.com Post-Negotiation Analysis

In this case, my role is Terry Schiller, a seller from HOLLYVILLE. I want to sell my show MOMS.com to WCHI. MOMS.com is a great show. Also I want to sell another show named Juniors to them. These two shows have different audiences group. After reading and analyzing the material, I think my priority issue is licensing fee and the second one is runs/episode, also I should care about the terms they give me the money, because as time goes by, I will lost more money. So the earlier they give me the money the better. The last one is the value of Juniors. Considering the situation of both of us, my target is $65000 for 7 runs/episode, and they will give me 50% of the money in the first year, and 40% in the second year and 10% in the third year. I know that I may not reach my target, so my reservation point is $60000 for 6 runs, and the financial terms is 50% in the first year, 30% in the second year and 20% in the third year. Finally, even thought we don’t make the deal, I can sell the MOMS.com to WWIN for a net value of $2.5 million dollars. About Juniors, it would be better if can sell it at $200000, my target is $180000 and reservation point is $150000.

At the beginning of the negotiation, I introduced the MONS.com and tried to attract them. They made the first offer and the price is low to $30,000 per episode, so I asked them if they can rise the price, they added about $10,000 per episode, but is was still far from what I want. I said they have good time slot for this good show, so this show will achieve high rating point, and they can earn a lot from the advertising. This tied this offer to their interests. Their material may have some difference from mine, so they didn’t have confidence about the rating point I promise. So I provide a method the share the risk with them. If this show doesn’t reach the rating point I promised, I pay them more, vice verse. I hope they can see my self-confidence about this show through this method. But it didn’t work and they just don’t want any other items. Then I use another strategy, package the licensing fee and runs/episode. I asked how many runs do they want for $40,000 per episode, they said 5. Then I gave them a package that if they can raise the licensing fee to $70,000 per episode, I can give them 8 runs. I asked what’s their priority, the answer is licensing fee, which is the same with me. So I said that this is a good show that can give them power to compete with WWIN. If we can make this deal, it is good for both of us. And told them that they can gain a lot from runs. They said they don’t need that much runs and this really surprised me. So I have to lower the price to $65,000 per episode for 7 runs, they said they wanted to buy another show, so they didn’t want to pay that much money to this show. So I said my reservation point $60,000 per episode for 6 runs and they agreed.

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