Negotiation: A Lesson in Strategy, Relationships, and Growth

Negotiation: A Lesson in Strategy, Relationships, and Growth

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:

  • 130,000 shares with a two-year pro-rata vesting period
  • One board seat to maintain influence over EVA’s future
  • Annual salaries of $184,000 for EVA’s two partners in their new Vice President roles

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.


Lessons That Will Stay With Me

  • Negotiation is a Skill, Not a Talent: I used to believe that good negotiators were simply born that way. This project taught me otherwise. Negotiation is a learned skill that involves preparation, strategy, and practice. It’s about knowing when to push for more and when to step back.
  • Building Relationships is Key: Through the simulation, I realized that successful negotiations go beyond striking deals. It's about fostering relationships—with your suppliers, business partners, and even within your own team. Long-term success in supply chain management thrives on trust, transparency, and mutual respect.
  • Clear Communication Matters: Supply chain operations work best when everyone involved knows what is needed now and what will be required in the future. Miscommunication can lead to chaos, while clarity ensures efficiency.
  • Short-Term Solutions Aren’t Always Best: While it might be tempting to go with quick fixes for immediate results, this project showed me the value of sustainable, long-term strategies. Negotiations should aim to build something lasting, not just solve immediate problems.


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

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