Negotiation: A Lesson in Strategy, Relationships, and Growth
Sakshi Pathak
MS Sustainable Transportation and Logistics, SUNY Buffalo | Supply Chain Enthusiast
If you had asked me a year ago about my thoughts on negotiation, I might have shrugged and said, "Isn’t it just about getting the best deal?" At that time, my understanding of supply chain and business negotiations was, admittedly, minimal. I thought creating a product and presenting it to the world was the endgame. However, my experience in the Purchasing and Supply Chain Management course, coupled with a challenging negotiation simulation, transformed my perspective entirely.
A Field Once Alien
When I began this journey, terms like "vesting periods," "board seats," and "pro-rata shares" were completely foreign to me. Negotiation seemed like a complex puzzle where only industry professionals knew how to fit the pieces together. I felt like an outsider trying to make sense of it all.
This project simulation changed that. Representing Elmwood Village Ales (EVA), our team was tasked with negotiating the sale of our brewery to Three Sheets Brewery (TSB). It wasn’t just about numbers on paper but about understanding the value of relationships, strategy, and clear communication.
The Negotiation Results
From the outset, the negotiation revealed stark differences in priorities and valuations. TSB’s initial offer, which included 138,000 shares over a three-year vesting period with no board seat, was well below our target of $3.9 million. At the same time, my team faced internal debates over the ideal vesting period. We needed to balance monetary objectives with broader strategic goals, aiming to secure not just immediate financial return but also long-term involvement.
One of the key lessons I learned in this process is that negotiation is as much about listening as it is about speaking. TSB’s counteroffer of 135,000 shares with a two-year vesting period didn’t meet our expectations, but it opened the door for further discussion. After several rounds of constructive dialogue, we successfully negotiated a deal valued at approximately $3.67 million. While this slightly fell short of our original $3.9 million goal, the final agreement contained critical elements that aligned with our broader vision:
This result reflects a strong compromise that balances financial stability, leadership opportunities, and long-term security for EVA’s employees and brand.
As someone still early in my career, I understand that there is always room for improvement. While I might not have the experience of a seasoned negotiator, I believe the approach we took and the lessons I learned throughout this project have helped me achieve a result that reflects both growth and a thoughtful application of the knowledge I gained.
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Lessons That Will Stay With Me
From Student to Guide
Though I’m far from the level of seasoned industry professionals, this project gave me a glimpse of what it takes to succeed in this field. For someone like me, who started with little knowledge of supply chain negotiations, the progress feels immense. It’s empowering to think that one day, I might be able to guide someone else—helping them navigate the complexities of this field, just as my course and team helped me.
This experience was not just an academic exercise; it was a reminder that growth comes from stepping into the unfamiliar, embracing challenges, and learning through the process.
Negotiation is about finding the balance between achieving your goals and maintaining relationships. It’s about strategy, empathy, and adaptability. This project was a crash course in all of these, and while I’m still learning, I know that I’ve taken an important first step.
To anyone who feels like they’re in uncharted territory, remember: every professional was once a beginner. Keep learning, keep growing, and don’t shy away from the challenges; they are your greatest teachers.
Warmly,
Sakshi Pathak