Philly Cleans (A)

Case Solution

Melissa Thomas-Hunt, Rebecca Goldberg
Darden School of Business ()

This case provides a minimum threshold and range of values ​​for a janitor services contract in an office building. A wide variety of facts are presented to which negotiators can pay more or less attention when planning and conducting their negotiations. Mitchell, a shift supervisor, has been temporarily authorized to negotiate on behalf of his supervisor, Robert Eckhart, who is ill. Philly Cleans sales representative Jim Evans is trying to maintain his company’s typical profit margin of 25%, which is 10% above the industry norm of 15%. A contingent arrangement is possible, which would likely take the form of a delivery reduction in the median room price if the median room size in this renovated office building is actually significantly smaller than the median room size in the new office buildings. This case contains two roles, one for each person in a two-party negotiation. They are relatively short and can be read in class shortly before a mock negotiation. This learning activity is designed to provide negotiation skills to a wide audience, including business school students and graduates, adult learners in a variety of settings, and at a corporate university.

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