Originally Posted by diary_room:
“The 'standard procedure' would be to offer a price to clear the desks.
The 'hardball' tactic would be to offer to take it away for free. Both teams should have thought of this.
The winning tactic would have been to go beyond free and actually pay for the desks and chairs, knowing you could sell it on. This is the only way you can beat an offer of 'free'.”
Agreed, that's what you should do if winning the contract is more important than everything else. But it isn't.
Quote:
“Even if they had offered 100 as Susan suggested, they could still have ended up 200 up and the other team would have had 300 less (based on that shop's buying price).”
Except that Zoe's team would have spent so much time on this contract that they couldn't do other ones, and the other team would have been free to do other contracts. And those other contracts could be more lucrative.
The only reason to prioritise the given contract is if you think it's going to be more lucrative than normal. However, there's not much reason to think that. In the past, contracts provided by the production team have been a poisoned chalice - too much work for not enough money (eg selling bread to hotels last year). Even if it is a fair task, you know you are competing with the other team. If we agree being paid £50 is fair, and the other team plays hardball and goes free, and you pay £50 to undercut them, you are actually getting paid £100 less than the job is worth. You are probably better off finding your own contract, for which you won't have to compete with the other team, and so for which you can charge a full (or at least fair) price.
That the contract turned out not be especially lucrative was confirmed at the end, when the other team got it but only won by £6.
Consider it this way: had Helen followed your logic, guessed Zoe would go free, and offered £50 to be sure of winning it, everything would have panned out the same, except at the end Helen would have £50 less. So she'd have lost the task by £44.