Selling Case Study
A partnership agreement – How can a Jet charter company stay ahead of the competition? Background PEPS (Executive and Private Jet Service) is a Jet charter company. It arranges travel in private Jets for top executives and VISP (very important people). It provides a customized service, looking after all its customers’ requirements, from booking tickets to transporting air travelers to their final destination. It is currently negotiating a partnership agreement with the Misgauge group of tools.
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Based in Stuttgart, Germany, Misgauge has five-star hotels across Europe, Asia and South America. PEPS has agreed to give Misgauge ‘preferred partner status’. This means that PEPS will always reserve rooms for its customers in a Misgauge hotel, providing the customer has not expressed a preference for another hotel. PEPS is a fast-growing company, but it is facing strong competition from other charter airlines. To beat the competition, it must offer customers a very attractive package: DOD-value prices, special assistance at airports, superb hotel accommodation and outstanding service.
PEPS and Misgauge have met several times. They are now ready to negotiate some of the key terms of the contract. Unwelcome to Misgauge hotels ! Every modern convenience Splendid views of the city Elegance, luxury, relaxation Room Rates Format Arrangement Rate per night Platinum Suite Suite $4,000 per night Sold Standard Double room $1,000 per night Executive Standard $850 per night Kook are directors of Misgauge. These are the points you will need to negotiate, together with your negotiating session on each one. Negotiating point Length of contract Suite/rooms Services Rates Advertising four position Contract lengthier years, then re-negotiate You can offer: o Platinum Suite Breakfast, free bar and all facilities and services, except lunch and evening meals o Gold Standard Breakfast + no payment for spa, pool, meeting rooms, business centre, sports facilities o Executive Standard Breakfast + no payment for pool, meeting rooms, business centre. All other meals and services require extra payments.
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You can offer these discounts on advertised prices: Platinum Suite 10% Gold Standard 8% Executive Standard 6% o You want PEPS to include information about your hotels in all its advertising. You Nil pay 20% of the advertising costs. Writing As a director of Misgauge, write A letter to the directors of PEPS establishing the agenda (order du Sour) for the future meeting to negotiate a partnership e-mail. A semi-formal e-mail to your head of Sales, giving instructions for the future negotiations