Texoil Negotiation Essay

854 Words4 Pages
1. Facts: Texoil and service station owner were negotiating on price of particular gas station and I was the Vice President of Operations of Texoil Company. Texoil has wanted to increase the number of stations as a five-year plan and interested that gas station that had an excellent management team. Additionally, this station has a suitable location with less competition. Texoil were willing to pay up to $500,000 for the station, but updating the pumps and mechanic’s area and adding a mini mart would be additional cost for them. As an alternative, they would purchase land and build a gas station with new equipment, which were more efficient and an additional mini mart for more than $675,000. However, this new station would be able to generate more profit than current one. First offered was $1million and made by service station owner. According to information that I had, I found it very high and I made a counter offer with $300,000. She told me that she and her husband had a luxury dream to sail around the world and this was not covering the expenses. Then, she offered $900,000. It was still beyond my target price and I took down that one. I offered $400,000 and she found it still very low. We made this back and forth offers for about 10-15 minutes and we couldn’t agree on any price. Then, I asked her what her needs were. She said she needed health insurance and a job after they came back because they already sold everything what they had. Then, I offered $400,000 and managerial position job offer. She didn’t accept it, because she wanted cash right now and wanted to find a more flexible job than this one. She asked for $615,000, but I didn’t accept that. At the end, I offered $500,000, which was the max that I could give, and health insurance during their trip. First, she asked for the cash value of that health insurance, but I said no, then she accepted my offer

More about Texoil Negotiation Essay

Open Document