NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

Bliss Meadows
A case study in Negotiation Skills
Prepared by: Prof. Rakesh Marwaha

This document includes a Negotiation skills case study, transcript and an assignment
 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

About the seller:

Bliss Homes Ltd. is the pioneer in building apartment complexes with its first project completed nearly
30 years ago. They believe that their customers should experience true “family bliss” rather than
considering their apartments as just a roof over the head. Since then the company has successfully
executed 75 projects across the county including a few in the gulf and far east. The company mostly
addresses the middle income group bracket while 3 of their projects, outside Bangalore, are for the
elite. All their properties have been sold out in record time and they boast of excellent image in the
market.

Two years ago they completed an 85 villa and 225 apartment complex built around a sports theme.
They call it the Bliss Sports Village. This complex is built within an 18-hole golf course and also boasts of
other sports like tennis, badminton, swimming, and several other indoor sports. It also includes a fancy
clubhouse with a choice of multiple cuisines as well as a fully stacked bar. It is the only one of its kind in
Bangalore and has been completely sold out. The sports facilities are only for the residents and
outsiders are not allowed entry ordinarily, except in times of tournaments and other sports events.

The apartment complex in question is called Bliss Meadows and is located about 6 kms from the Bliss
Sports Village. It is built on an 8-acre land about 12 kms from MG Road and 28 kms from the airport. It
is in a residential area with 8 other apartment complexes, together housing more than 1200 apartments.
The market close by offers many restaurants, the biggest brands and 2 shopping malls - all accessible
within 2 kms. Bliss Meadows has 182 flats, including 48 2BHK and the remaining 3 BHK luxury
apartments. It is currently in the final stages of completion and will be ready for occupation in the next
3-4 months. All except 4 2BHK and 3 3BHK have been sold out. The apartment complex has all that is
really necessary like 24-hour security, water supply, generator back up, swimming pool, jogging track,
toddler play area, parking – both covered and open, a convenience store, etc. All approvals from the
local government authorities have been received in all areas including water harvesting, waste
management etc. About 6 leading banks have approved the building for advancing loans to prospective
buyers.

About the buyers:

George and Mini got married about two years ago when George was about 32 and had about 10 years of
work experience. Both of them are the outgoing sports types. George captained India Schools in cricket
and went on to play in the winning team in the 2007 Ranji Trophy. Today he plays golf, but only rarely
because of the prohibitive green fees (each game costs him about Rs.3500) costs involved. Mini was an
athlete and won many medals in the track events. She loves swimming and playing badminton but
hardly gets the opportunity to indulge in these activities for want of the facilities. About 4 years ago they
met at the 10K run, dated and decided to get married. They both work in different IT MNC’s in Bangalore
in mid management positions. Both drive their own cars to work and they currently live in a rented
accommodation with George’s parents. They pay Rs.28K as rent and have decided to buy their own flat
at Bliss Meadows because they want to continue with their respective sports. George just completed 5
years in his company, is a high performer and has been offered an interest free loan of Rs. 5 lacs
(repayable over a maximum of 5 years) for a down payment on an apartment / purchase of household

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 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

items. Incidentally, the COO of George’s company had bought a villa for about Rs.3 Cr, about a year ago
in the Bliss Sports Village and says it is one of the best decisions he has ever taken.

Being the aggressive and analytical type, George was able to collect the following information from the
internet and from 2 visits that he had made.

Data Sheet - Bliss Meadows

Flat type - Premium 3BHK

Area 1376 sq. ft.
Rs.3450 / sq. Neighbourhood apartments are priced in the range of Rs.2600 to
Price
ft. Rs. 4300 per sq. ft.
Flooring A grade A++ Quality flooring imported from Italy @ 35K extra
Electrical Points A grade A++ Quality electrical points imported from USA @ 10K extra
Painting A grade Decorative special acrylic painting @ Rs.20K extra
Bath fittings A grade A++ Quality fittings imported from Europe @1 5K extra
Extra - Mandatory
Maintenance by Bliss Homes for a period of the first 5 years.
Maintenance Corpus 100K Amount will be transferred to Managing Committee on
formation after 5 years.
Extra - Optional
Sports Village Golf
Extra for 300K for life for one family - Owner / Tenant
Membership
Parking 150K In the basement, sufficient for a mid-size car
Additional Parking -
200K In the open area, sufficient for a mid-size car
Extra
Woodwork - Kitchen 200K Quality assured by builder. Approximate market price is 175K
Woodwork - Bedrooms 300K Quality assured by builder. Approximate market price is 250K
Drawing room furniture 150K Quality assured by builder. Approximate market price is 150K
Dining room furniture 75K Quality assured by builder. Approximate market value is 75K

Note: A Grade refers to highest quality Indian made products.

George and Mini have decided that since this will be a once-in-a-lifetime decision they want to go in for
the best with all possible amenities. However, they have decided that they would not like to invest more
than Rs.45 lacs for the apartment through a loan from the bank. They could get another loan of about
Rs.5 lacs for woodwork / furnishings, Rs.5 lakhs as the high performer loan from the company and could
scrape together another 3 lacs from savings.

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 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

Following is the transcript of the discussions that George had with the GM (Sales) of Bliss Meadows 2
days ago.

George: Hello. At last I finally get to meet you. Your juniors were not allowing to meet you when I
came last.
GM (Sales): Good morning sir. I am sorry about that. I am always available to meet you. How can I help you?

George: We would like to buy a flat but we are not convinced about the prices etc. What would be
your final price? Let me tell you we have done our homework and enough research.
GM (Sales): Our prices are firm and most competitive compared to similar apartments…...

George: (Interrupting) No… no… no… I think you are overcharging. The neighbouring complex is
offering at Rs.2800/- and they are willing to give an even better price.
GM (Sales): What we have offered you is our Luxury Premium flat with more amenities that they are offering.
Anyway I cannot comment on what the others are offering. We will be very happy to have you as our customers.

George: They also want us at their customers. I will give you Rs.3000 per sq. ft. max. We also want
the sports membership free, and 25% discount on A++ fittings, woodwork, Afterall, you cannot
overcharge us on everything as you must be getting more than 50% margins on all these. We are still
allowing you 25% margin. if you agree we can finalise now, if not, we will be forced to go elsewhere.
GM (Sales): These are all standard items with very low margins. We offer these only as a convenience to our
customers. I can give you additional 5% discount on all the items. We want good people in this apartments.

George: All builders speak the same way. I do not trust them. Give me the final price immediately.
We would like to finalise today itself.
GM (Sales): I am extremely sorry I cannot give more than 15% discount. The price per sq. ft. will be Rs.3450. We
cannot give the membership free as all our customers have paid for it and it will not be fair to them.

George: Your price was Rs.2400 when the project was launched. You are now overcharging by
Rs.1050 per sq. ft. This is not acceptable. I have made you a very reasonable offer. Maybe, I should
meet your CEO.
GM (Sales): Sir, my CEO is not available. Actually, you have been misinformed, when we launched the project
more than 2 years ago the price was Rs.2850. There has been an increase in material and labour. That is why we
are forced to charge Rs.3450 today. Anyway the best I can do is reduce Rs.50 per sq. ft. since you are talking of
taking a decision today.

George: I think you are not interested in my offer. Let me think and explore other options as well. I
will give you 48 hours’ time to think and get back to me. Please inform your CEO of my offer and
arrange for a discussion immediately.
GM (Sales): Yes, sir. Definitely. I will arrange for a meeting and work out the best possible discounts.

End of Transcript

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 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

ASSIGNMENT

Based on the data available and the transcript answer the following questions / give your opinion:

1. Is there an opportunity for a negotiation? Explain in brief.

2. Does the transcript show trends of Positional or Principled negotiations? Give at least 3 reasons
supporting your decision.

3. Are the buyer and sellers adapting soft or hard strategies in bargaining? Explain in brief.

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 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

4. From your perspective, are the dialogs leading to Win-Win, Win-Lose, Lose-Win or Lose-Lose
outcomes? Give reasons supporting your decision.

5. Based on the transcript list at least 3 verbal behaviours each for the Buyer and Seller and indicate
whether these behaviours are conducive for win-win outcomes.

6. In your role as a Principled Negotiator, what 3 recommendations would you give he should
implement to successfully conclude the deal?

End of Assignment

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