This negotiation focuses on resetting the hourly rate in a recurring transcription contract where both sides have clear alternatives and a long record of incremental price declines.
The seller has upgraded systems and faces higher operating costs, while the buyer continues to expect annual reductions tied to efficiency gains.
The discussion sits at the point where a stable relationship meets an unsustainable pattern, and participants must decide whether to continue the downward trend or establish a more viable baseline.
The scenario gives instructors a concise way to work on BATNAs, anchoring, pricing trajectories, and the dynamics of reversing a pattern once it has taken hold.