Business English Negotiation unit 6 price

Business English NegotiationChapter 6 On Price Instructor: Li Jing

Objectives To review some useful terms andconditions on prices and negotiation

expressions To fulfill negotiation tasks by making full use of the strategies

Procedures Review Teachers’ negotiation presentation Students’ negotiation presentations Comments and Summaries Homework

Review1. How prices are decided? Quality Quantity Terms of payment Time of delivery Market demand Competition

Trade terms (FOB, CFR and CIF) Price of raw materials Relationship Government policy Exchange rate

Review 2. Useful expressions on price bargainingExpressions used by the buyers: Any chance of a lower price from you if our order is large enough? Since the prices of the raw materials have been raised, I’m afraid that we have to adjust the prices of our products accordingly. We may accept your offer if you promise an earlier delivery. In the view of our longstanding cooperation, we will reduce our price by 5%.

Useful expressions used by the sellers: Are you prepared to accept a ten percent discount? We won’t make any profit at that price. How do you expect us to survive? We have decided to make further concession of 2% in the hope that this helps you push sales of our products. We are willing to enter into business relations with you on the basis of equal and mutual benefits. The price for this commodity has gone up since last year. Your quotation is over the current price in the international market.

Review The negotiation strategies for price bargaining 1. “Win-win” situation 2. Cooperative and competitive 3. Don’t concede without exchange 4. Never accept the first offer--- make a counteroffer in return. 5. If the price is suspiciously low, ask yourself why. 6. You can also try to make the asking price look high by exposing any ongoing costs. 7. If the price includes features you don’t need, try to lower it by asking to remove those features from the deal.

Teachers’ negotiation presentation Exporters: Ms. Li, sales manager and Mr. Zhou, QC manager. They are from Lucky Bird Flowers Import and Export Corporation in China Importers: Mr. Williams, sales manager, Miss White, production manager and Mr. Black, general manager. They are from Williams Import and Export Company, Australia. Products: Flowers Unit price: No. 10: $25 No. 20: $35 No. 30: $50

Students’ Negotiation Presentations Exporters: North Foodstuff Import and Export Company in China Importers: ABC Company from America Products: Canned meat Unit price: Canned Beef $210 per case Canned Fish $185 per case Requirements: 1. Group work: 4-6 members in one group 2. Time limit: 6-8 minutes 3. With a brief introduction 4. Be creative: roles, rounds, quality, quantity, market condition, company’s reputa

tion, etc.

Evaluation standard

Language Negotiation strategies

Etiquette

Team work

Role assignment

Comments and Summaries 1. Factors affecting prices 2. Useful expressions on price negotiation 3. Negotiation strategies on price bargaining

Homework A negotiation case The seller, a Chinese exporter, begins the negotiation session by giving the customer, a foreign importer, a briefing on their newly developed products---the E.T. brand plastic roller-skates. Then he and the buyer are engaged in the discussion on prices and terms of payment. Finally, when agreement is reached on the price, they start talking about delivery arrangement.