Unit 6 Price BargainingUnit GoalsStarting-upPlease tick for expression on price negotiation.1.This offer is firm for 5 days.( )2.We’d like to set up a business operation in this field.( )3.If you can consider reducing the price by 10%, I’ll place an order for30,000 pieces.( )4.In view of our long-standing business relations, we are willing to reduceour price by 5%.( )5.We will accept your counter-offer if you agree to use the fabric of 80%polyester instead of 100% cotton.( )6.How many cotton sheets are you going to order.( )7.Could you let us know your lowest quotation, CIF EMP?( )8.Your products can find a ready market in the eastern part of our country.( )List the elements related to price.1. 2.3. 4.5. 6.Initial ListeningBefore listening, please learn the following trade terms by heart.T T a a s s k k11You will hear some phrases covering the reduction in price and discount. Repeat for the first time you hear. Then listen again and write your answers down.1._________________2.________________3._________________4.________________5._________________6.________________7._________________ 8.________________9._________________ 10.________________T T a a s s k k22You will hear eight sentences. When you hear the first time, repeat the sentences and pay attention to the stresses and tones. Then listen again and fill in the missing words.1.washing machines is too high to be acceptable.2.We regret to say that your price is .3.We don’t think there is business unlessyou .4.We think the price you offered quite reasonable but haveto .5.The customer agrees to of the total valueof .6.I’ll for the sake of the beautiful colour of your products..7., I think the price is reasonable.8.Your counteroffer is to you.T T a a s s k k33You will hear 5 short conversations. At the end of each conversation, one question will be asked. Both the dialogue and question will be spoken only once. Mark the best answer for each question.1. A. He would like the price to be far beyond.B. He wants the price to be lower.C. He expects to get the quotation from the woman.D. He finds the price acceptable.2. A. She wants to have a little profit.B. She informs the man of the supply position of raw materials.C. She quotes the price for raw materials.D. She explains the reason why the price is high.3. A. He can accept the price on CFR basis.B. He wants the woman to quote CFR.C. He asks the woman whether she can supply the goods.D. He hopes the woman to supply the goods on CFR basis.4. A. She will accept the order over 50,000 pieces.B. She agrees to allow a discount for the orders from the man.C. She can give the man a discount for orders up to the stipulated quantity.D. She intends to place orders for 50,000 pieces.5. A. He doesn’t agree with the woman.B. He can accept to increase the negotiated price by 1%.C. He couldn’t meet each other half way.D. He couldn’t lowe r the price by 1%.Oral DiscussionBefore discussion, you are given the following advices. Professional Advices1. For sellers, how to persuade buyers into accepting the price?Analyze the structure of the costExplain the market price of raw materialsDraw buyers’ attention to the qualitySort out the factors influencing the priceTake advantage of profit marginSet the price limit to be accepted2. For buyers, how to decide the target price?Research the market level for particular productsStudy catalogues and price list from vendorsMaster product informationKnow about production lineAsk sellers for minimum quantityWatch more vendors’ advertising and offersUnderstand the vendor’s costMake reference to retail priceNow, please complete the following tasks.T T a a s s k k11Work in pairs. Discuss what difference there are between counter-offer and price bargain?T T a a s s k k33Work in pairs. List the procedures of business negotiation and design the situation for each step.T T a a s s k k11Discuss the following topic.Imagine you are a seller to persuade your buyer into accepting the price, put down the persuasive sentences.Intensive ListeningLearn the following by heart before listening.D D i i a a l l o o g g u u e e11..1.Listen to the dialogue and decide whether the following statementsare true or false. Write “T” for true and “F” for false.1.Mr. Smith would like the price to be lower 8%. ( )2.Mr. Wang agrees to reduce the price by changing the style of embroidery.( )3.Mr. Smith doesn’t like to change the embroidery. ( )4.Mr. Wang and Mr. Smith meet each half way finally. ( )5.The finally confirmed price USD5.35. ( )2.Listen to the dialogue again and complete sentences according tothe contents in the dialogue.1. I have compared your quotation with those of and I’m sorry tosay that your price is about .2. We consider it indeed.3. To accept the price you quoted would leave us only on oursales because the principle demand in our city is for the similar articles .4. My target price is .5. If we can use five layers of petal instead of eight, the cost will be reducedand the price will also .3.Take notes for negotiation on priceMr. Smith’s target price _______________________Mr. Wang’s second quotationfor original style _______________________Change of Style _______________________The price agreed uponfor the revised style _______________________D D i i a a l l o o g g u u e e22..Listen to the dialogue and choose the best answer to each of the following questions.1.What does Mr. Wang think about the counter-offer from Mr. Smith?A.The price counter offered is too low for him.B.He can comply with the request for the counter-offer.C.The samples which are made for other countries.2.In which respect does Mr. Wang think his price competitive?A.DiscountB. Quantity C Quality3.How much higher than the market level does Mr. Smith find ?A.5%B. 15%C. 10%4.What accommodation is Mr. Wang able to give ?A. A reduction of 15% will be given.B.The price will go down to 5%C.The price will be reduced by 5%5.Does Mr. Smith accept the accommodation?A.No, but he wishes to have a cooperation in furture.B.Yes, he agrees to Mr. Wang’s advice .C.Not mentioned.Oral presentationIn this part, please make oral presentations after reading the following tasks. You are given the functional sentences to help you.Functional Sentences1. Your price is too high to be acceptable.2. Since the prices of the raw materials have been raised, I am afraid that wehave to adjust the prices of our products accordingly.3. Please see to it that your price is out of line with the prevailing market here.4. We are informed that our price is on the high side.5. We have cut our price to the limit, we regret being unable to comply with yourrequest for further reduction.6. We have already cut down our prices to cost level.7. The qualities are satisfactory, but your prices are considerably above ourusual figures.8. Commission transaction will surely help to push the sale of products.9. It’s really impossible for us to make any further concession in your price byallowing you any commission.10. The best we can do is to give you’re a 2% commission.11. On orders exceeding USD10000, we will allow you 5% discount.12. We regret having to decline your request for raising the price.13. We usually don’t grant any discount for small quantities.14. To have this business concluded, you need to lower your price at least by3%.15. We are pleased to grant you a 7% discount from the original offer since youagree to increase the order.16. We accept the price of USD50,000 for 10,000 pairs of leather shoes.17. In view of our good cooperation over the past few years, we are consideringaccepting your price.18. With an eye to future business, we agree to grant you 5% discount as aspecial accommodation.19. We have to say that our price has been reduced to the limit.20. May I put it this way that we meet each other half way to fill the gap in price? T T a a s s k k11Retell the passage of Dialogue 1 with the words and useful sentences used in the dialogue.T T a a s s k k22Work in pairs. Student A plays the role of seller and Student B plays the role of buyer. Make up a dialogue according to the following situation. You sell exercise bicycles on behalf of Tianjin Recreation Equipment Imp. & Exp. Co. A business from Canada wants to buy 500 sets of your bicycles. Your price is USD200 per set FOB Tianjin, but he can offer USD180 per set. You start bargaining.Background InputNegotiation the price of goods is the most important factor in negotiating for merchandise. One thing that must constantly be kept in mind is that the good must be “right”. It is better to overpay for the right goods than to underpay for the wrong merchandise. The buyer’s success in negotiating price may be greatly improved by the knowledge of the market in general and the individual resource in particular.Bargaining is an intensely personal act that must be learned from experience rather than a textbook. However, certain factors are more or less constant. Firstly, both the buyer and the seller approach the bargaining session with “limit” in mind. The buyer knows the maximum he or she is willing to spend and the seller, the minimum he or she will take. In bargaining each party tries to improve on his or her limit. Secondly, it is helpful for the buyer to give reasons for his or her offer. The buyer may build a case by discussing the retail selling price, the risk of consumer demand, the lateness of the season, and so on. Thirdly, usually after the negotiating has been in progress awhile, one of the parties always seems to suggest splitting the difference. That is , if the offer is $2 and the asking price is $4, they should settle at $3. The buyer should keep this in mind all the time, because this unseen price is closer to the final result than either the bid or the offer. Fourthly, it is unquestionably to the buyer’s advantage to maintain a friendly ongoing relationship with resources.。
