Golf Fore Value: David Deluna

This case—and its related case (UVA-QA-0732)—examine both sides of a two-party negotiation, in which students are asked to find the net value of the deal. These cases fit well in negotiations courses and are suitable for both undergraduate and MBA students. This case is from the perspective of David Deluna, who was looking forward to acquiring and using a new putter from Golf Fore Value—for which he would trade one or more of his used clubs. Deluna had appraised the value of each of the three clubs that could be included in the trade and had also considered their resale value to the store. His objective was to maximize the net value of the clubs that remained in his golf bag less the clubs given up in trade with adjustments for any small cash payment that might be made or received. He hoped that he could leverage his long-standing relationship with Robert Johnston, the owner of Golf Fore Value, to negotiate a favorable deal. Excerpt UVA-QA-0731 Rev. Nov 17, 2009 GOLF FORE VALUE: DAVID DELUNA With summer just over the horizon, David Deluna eagerly anticipated the upcoming golf season. This would be his senior season, and his first season as captain of his school's golf team. The team had been district champions the previous two years, and Deluna wanted to make sure he wasn't the captain who ended the winning streak. After an aggressive practice regime during the spring, Deluna decided his game was almost where he wanted it, except for his putting. A strong putting game could prove to be the way he would help his team become district champions for the third time. Maybe a new putter was the answer, and a visit to Golf Fore Value might produce the perfect addition to his golf bag. Golf Fore Value Golf Fore Value was a well-established and well-respected golf shop that bought, sold, and traded golf equipment. Deluna had been a regular customer for as long as he had played golf—over 10 years. Golf Fore Value always had a great selection of equipment, and this visit proved to be no different. Among the putters was the Scotty Cameron Newport Two, the putter Deluna had dreamed of owning. It was an expensive club, but it was the best combination of look and feel on the market. Once it was in his hands, it lived up to every expectation. The putter retailed for $ 329, but Deluna knew that a substantial portion of the price was Golf Fore Value's profit margin. In previous purchases from Golf Fore Value, Deluna believed that he got better deals when the transaction was a trade rather than purely a cash sale. Deluna spoke with Owner Robert Johnston about his interest in the Scotty Cameron putter and said he would be back the next day with an Odyssey Rossie putter in fair condition, a Titleist 200 Series Vokey 252.08 wedge in good condition, and a Callaway FT Tour 3-wood in perfect condition. . . .