chapter18Negotiatingprices.ppt

Unit 18Unit 18 Negotiating pricesNegotiating pricesBackgroundBackgroundLasttime,DannyMcNeilinvitedEdwardtothewarehouseandshowedhimhowEromartoperatedonbusiness.Thesuccessformulaishighervolumesofsaleswithsmallermargins.Donwasstuckinameeting,therefore,EdwardwasauthorizedtodealwithDanny.Now,LetstakealookatthestoryandseehowEdwardmakesnegotiationonpricewithDannyMcNeil,thepotentialbigbuyer.2NEUSchoolofBusinessAdministrationObjectivesObjectivesSAYINGWHATYOUWANT提出要求提出要求MAKINGOFFERS报价报价RESPONDINGTOOFFERS讨价还价讨价还价3NEUSchoolofBusinessAdministrationIn this unit.In this unit.EdwardGreenstartsthenegotiationwithDannyMcNeil.EdwardtelephonesDonBradleyduringabreakandgetssomeusefulinformation.DonarrivesafterEdwardhasclosedthedeal.4NEUSchoolofBusinessAdministrationNew words and expressionsNew words and expressionstoconduct进行进行authority权力权力/代理权代理权toresolve解决解决break休息休息clarify请清楚，阐明请清楚，阐明unitprice单价单价mark-up加价加价standard标准，规格标准，规格unacceptable不能接授的不能接授的termsofpayment付款条件付款条件finaloffer最终报价最终报价alargeorder一张大量的订单一张大量的订单turndown拒绝拒绝Justletmefinish./Pleaseletmefinish.请让我讲完请让我讲完CanIcomeinhere?我能在这里插话吗？我能在这里插话吗？5NEUSchoolofBusinessAdministration6NEUSchoolofBusinessAdministrationCounter-standpointsCounter-standpointsObviously,eventhoughallDannyMcNeilhasbeentalkingaboutisthelargestdiscount.However,Edwardwontmakeafastconcessionforthefirstoffer.Inthefollowingpart,wecanseeEdwardandMr.McNeilaretakingdifferentstandsintermsofdiscount、priceandsizeoforder,etc.7NEUSchoolofBusinessAdministrationCounter-standpointsCounter-standpointsDANNYMCNEIL:Beforewebegin,areyousurethatyouareinapositiontoconductthisnegotiation?EDWARDGREEN:Yes,Ihavetheauthoritytonegotiatewithyou.DANNYMCNEIL:Right.Letsgetdowntobusiness.EDWARDGREEN:WhichofourproductlinesareyouparticularlyinterestedinMr.McNeil?DANNYMCNEIL:IcouldbeinterestedintheseonesthatIhaveoutlinedhere.ButIwanttohearwhatyousayaboutdiscounts.EDWARDGREEN:LetstalkspecificallyaboutBigBoss.DANNYMCNEIL:Letsbeclearaboutonething.Ihopeyourealizethatwemusthaveamuchlargerdiscountthanwhatsonthetablenow.EDWARDGREEN:Ithinkthediscountproblemcanberesolvedbutyouneedtobemorepreciseaboutnumbers.DANNYMCNEIL:Fairenough.Whatkindofdiscountareyouofferingontenthousandunits?EDWARDGREEN:Ontenthousandunits,Mr.Mcneil,Icanofferadiscountofthirtypercent.ButIcantoffermoreDANNYMCNEIL:30percent!EDWARDGREEN:Justletmefinish,30percent,butwithaguaranteeofdeliverywithintwomonths.DANNYMCNEIL:DeliverymustbewithintwomonthsorImnotinterested.Imofferingyouthechancetomakeaverylargesaleandyouareturningitdownbecausewere.EDWARDGREEN:CanIjustcomeinhereMr.McNeil?Ihaventturnedanythingdown.Ihaventsaidno.Iamjustsayingthatontenthousandunitsourdiscounttermsarethirtypercent.8NEUSchoolofBusinessAdministrationDANNYMCNEIL:ButEDWARDGREEN:Pleaseletmefinish.NowifyoucommittobuytwentythousandunitsthenIcouldconsideralargerdiscount.DANNYMCNEIL:Howmuchlarger?EDWARDGREEN:IfyoucommittotwentythousandunitsthenIcanofferathirty-fivepercentdiscount.DANNYMCNEIL:Thirty,thirtyfivepercent.Imgettingtiredofthis.Youareplayinggames.Iamlookingforalargediscount,andIhopethatyouregoingtooffermeone.EDWARDGREEN:Ifyouwantabigdiscountthenyoumustmaketheorderabigone.Letstalkaboutunitpriceratherthandiscount.Ourstandardunitpricetothewholesaleris23.5.DANNYMCNEIL:AndImnotinterestedin23.5.EDWARDGREEN:Yes,IknowthatMr.McNeil.Ifyoubuy40,000units,thenIcanofferaunitpriceof19.5.Whatwillyourmark-upbeontheBoss,3,3.5,4?DANNYMCNEIL:Aboutthat.EDWARDGREEN:Withthosefiguresyouregoingtobeverycompetitive.9NEUSchoolofBusinessAdministrationDANNYMCNEIL:19.5unitprice?EDWARDGREEN:Ifyoubuy40,000units;thatrepresentsadiscountof.DANNYMCNEIL:Ihaveacalculator,too.Icanseewhatthediscountis.Offermeaunitpriceof19.5on25,000unitsandwecandobusiness.EDWARDGREEN:Icantdothat.Imsorry.DANNYMCNEIL:Letsbreakforafewminutes.IvegotafewthingsIhavetoseeto.Illbeacoupleofminutes.Wouldyoulikeacupofcoffee?EDWARDGREEN:Yes,please.DANNYMCNEIL:Helpyourselftothephoneifyouwanttomakeacall.EDWARD:Thanks.10NEUSchoolofBusinessAdministrationDONBRADLEY:DonBradley.EDWARDGREEN:Hi,Don.Howsthemeeting?DONBRADLEY:Itsjustfinished.Imonmywayover.Howsyourmeeting?EDWARDGREEN:Hesdefinitelyinterested.Werehavingabreak.DONBRADLEY:Whatsthesituation?EDWARDGREEN:Itsbecomingdifficult,werestuckonthesizeoftheorderforBigBoss.Hewantsaunitpriceof19.5onanorderof25,000.DONBRADLEY:Thatsoundsgoodtome.EDWARDGREEN:Ithinkwecanpushhimfurther.DONBRADLEY:Doyouthinkso?EDWARDGREEN:Ithinkso.Ihopeso.DONBRADLEY:Becareful.Hesacleverman.IvedealtwithMcneilbefore.Whenhestartsbangingonthetable,thatsasfarasyoucangowithhim.Goodluck!11NEUSchoolofBusinessAdministrationEDWARDGREEN:Thanks.Soletsclarifythepositionsofar.AsfarasBigBossisconcernedwehaveagreedonaunitpriceof20for30,000,andIcantgobelowthatpriceforanorderofthissize.Nowletslookattermsofpayment.DANNYMCNEIL:Ninetydays.EDWARDGREEN:ImsorryMr.Mcneil,butthatscompletelyunacceptable.Ourstandardpolicyondiscountsofoverthirtypercentispaymentwithinthirtydaysofdelivery.DANNYMCNEIL:Thisisnotastandardsituation.Iammakingaverylargeorder.EDWARDGREEN:CanIjustcomeinhere,Mr.Mcneil?Iknowyouremakingalargeorderbutyouarealsogettinganexcellentproductataverylargediscount.DANNYMCNEIL:Icantbelievethatthisisyourfinaloffer.EDWARDGREEN:Ifyouorder35,000thenIcanauthorisepaymentin90days.DANNYMCNEIL:Wehavealreadydecidedonquantity.Thisismylastoffer.30,000at60dayspayment.Takeitorleaveit.EDWARDGREEN:Ithinkthatofferwillbeacceptable.Soallwehavetodonowisfinalisethedeliveryarrangements.DANNYMcNEIL:Well,letsdiscussthedetailstomorrow.DANNYMCNEIL:Comein!Don,howareyou?DONBRADLEY:Hello,Danny,Edward.ImsorryImlate.DANNYMCNEIL:Youarelate.Idratherdobusinesswithyouthanthisyoungman.Whathaveyoubeenfeedinghim?DONBRADLEY:Oh,wedontfeedhim.Weliketokeepourstaffhungry.12NEUSchoolofBusinessAdministrationDannyWeCheck Check authority to authority to negotiatenegotiateBeforewebegin,areyousureyouareinapositiontoconductthisnegotiation?Doyouhavetheauthoritytonegotiatealargeorder?Starting a negotiationStarting a negotiationEdwardWeSeller:Seller:Check Check general general interestsinterestsWhichofourproductlinesareyouparticularlyinterestedin,Mr.McNeil?Whatareyouinterestedin,Mr.？13NEUSchoolofBusinessAdministrationDannyWeBuyer:Buyer:Make your Make your position clearposition clearLetsbeclearaboutonething.Ihopeyourealisethatwemusthaveamuchlargerdiscountthatwhatsonthetablenow.IamlookingforWemusthaveWeneed14NEUSchoolofBusinessAdministrationEdwardWeGo to specific Go to specific pointspointsLetstalkspecificallyaboutBigBoss.Youmustbemorepreciseaboutnumbers.LetstalkspecificallyaboutCanyoubemoreprecise?15NEUSchoolofBusinessAdministrationEdwardWeInterruptInterruptCanIjustcomeinhere?CanIinterrupt?Justamoment.Dont accept Dont accept the the interruptioninterruptionJustletmefinish.Pleaseletmefinish.Change to a Change to a new pointnew pointLetstalkaboutunitpriceratherthandiscount.Now,letslookattermsofpayment.Ok.LetstalkaboutNow,letsturnto.Controlling the negotiationControlling the negotiation16NEUSchoolofBusinessAdministrationMaking offersMaking offersOn10,000units,Icanofferadiscountof30%Ifyoubuy40,000unitsIcanofferaunitpriceof19.5.Ifyouorder35,000,thenIcanauthorisepaymentin90days.Turning Turning down offersdown offersStrong:Imnotinterestedin23.5.Icantgobelowthatprice.Polite:ImsorrybutthatsunacceptableIcantdothat,Imsorry.Accepting Accepting offersoffersIthinkthatofferwillbeacceptable.17NEUSchoolofBusinessAdministrationSaying what Saying what you wantyou wantStrong:Deliverymustbewithin2monthsorImnotinterested.Imlookingforalargediscount.Thisismylastoffer.Offermeaunitpriceof19.5on25,000unitsandwecandobusiness.Polite:IwouldliketohaveIreallyneedIfyoucouldoffermeIwouldprefer18NEUSchoolofBusinessAdministrationEdwardWeSummariseSummarise So,letsclarifythepositionsofar.Wehaveagreedonaunitpriceof20for30,000.So,allwehavetodonowisfinalisethedeliveryarrangements.Tosummarise.Weagreeto.So,nowwemust.DannyWePostpone Postpone Well,letsdiscussthedetailstomorrow.Letsdealwiththatlater.19NEUSchoolofBusinessAdministrationWhat to include in an offer?What to include in an offer?pricedeliverytermsofpaymentpackingspecificationthesizeoftheorder20NEUSchoolofBusinessAdministration Tips for bargaining Tips for bargainingKnowyourbottomprice.Dontmakelargeconcession.Bequick-minded.Showyourownadvantages.Aimatthelong-termrelationship.Maketheotherslookgood.Keepaslowanddeliberaterule.Quitwhileyoureahead.Keepuncertain.21NEUSchoolofBusinessAdministration