商务英语Unit9NegotiatingthePrice.pptx

Learning Objectives Understand the price in international business Talking about price adjustments,discounts and concessions Understanding the techniques in price negotiation Writing counter-offer letters Speaking Task Warm-up Practice Listening Task Follow-up Practice Writing Task Reading TaskWe need to discuss some questions about what we are going to learn in this unit.Sure,thatll help us understand better about what we are asked to do.1.Match the following currencies with their abbreviations.CURRENCIES ABBREVIATIONSCanadian Dollar RMB New Zealand Dollar SFrHong Kong Dollar EURSwiss Franc Dollar CADEuro Dollar SGD Great Britain Pound USDSingapore Dollar AUD Japanese Yen NZDRenminbi HKDAustralian Dollar GBP US Dollar JPYCurrency NameBuying RateCash Buying RateSelling Rate800.03793.03.803.23484.67474.45488.566.8156.67136.8697702.6687.79708.25592.24579.75597985.2964.43993.12503.72507.771424.321393.311434.76103.08102.35103.57BOC EXCHANGE RATEDate:2006/04/222.Questions1.Whatistradetermsorpriceterms?2.Whennegotiatingthepriceofaproduct,whatarethekeyelementstobeconsidered?TradeTermsTrade terms also referred to as price terms or delivery terms are a set of uniform rules codifying the interpretation of trade terms defining the price composition and the rights and obligations of the buyer and the seller in international transactions.Trade terms are key elements of international contracts of sale,since they tell the parties what to do with respect to:delivery terms(carriage of the goods from the seller to the buyer and division of costs and risks between the parties);price terms(stipulating what are included in the price the buyer paid to the seller,e.g.cost,freight,insurance,export and import clearance fees,etc.);delivery obligations(what documents should the seller provide,e.g.bill of lading,insurance policy,etc.).工厂 仓库 敞车 机场 集装箱 码头 码头 火车站 堆场 CY 汽车站 Exporting Country Importing Country FCA CPT CIP FOB CFR DDU FAS CIF DES DEQ DDP EXWExporting CountryDAF关境 关境Importing Country Unit Price Unit price comprises the employed currency,unit price,unit quantity,and trade term.每公吨每公吨 100 美元美元 CIF纽约纽约 Unit quantity Unitprice Employed currency Trade term USD 100 per M/T CIF New York 1)AUD100per dozen EXW Guangzhou2)CAD200per kilogram FCA Guangzhou3)EUR137 per set FOB Shanghai4)JPY597 per unit FAS Shanghai5)HKD167 CFR Hong Kong6)SGD463 per metric ton CIF Singapore7)USD 800 per set CPT Geneva8)SFr 2629 per kilogram CIP Geneva9)USD 1 000 M/T CIF C3 London10)EUR 317 per piece DES Marseilles11)GBP 500 per unit DEQ London12)EUR 386 per metric ton Delivered at 5 Maple Road,Bonn,Duty Paid 3.TranslatethesequotationsintoChineseIn this part you are going to listen to a passage and a dialogue.Listen and try to finish the exercises while listening.Are you ready?9.1.1 Listen to the passage and write T if it is true or F if it is false for each statement.1)Thebuyerwillalwaysaskthesellertoreducethepriceinbusiness.T2)Thelowertheprice,thebetterforthebuyer.Ontheotherhand,thehighertheprice,thebetterfortheseller.T3)Whenthebuyerisaskingfora“fairprice”,itmeansthatthepriceisnotfair.F4)Thehighertheprice,themoreprofitsthesellerwillmake.F5)Marketpriceswillsurelybementionedduringtheirnegotiationsonprice.T6)Accordingtothepassage,“fairprice”hasnothingtodowithmarketprices,itsuptothebuyerandtheseller.F9.1.2 Listen to the dialogue and answer the following questions.1)Why did Bill come to visit Mary?He came to talk about Marys plastic card order for the next year.2)Why did Bill say that they had to increase their prices a little?Because of inflation,increase in cost of raw materials and improved quality.3)What will be the minimum order for the cards if the price can be kept at the same level?850 000.4)What was the last years unit price for the cards?18 cents.5)What was the problem with the last years cards?Around 3%were faulty.6)Will Mary place an order for the cards next year?(Open)In this part you are going to read two dialoguesin pairs and then you will be asked to answer some questions about what you have read.9.2.1 Read the dialogue and then answer the following questions.1)HowdidMrGaojustifyhisriseinprice?vThecostsofproductionhavegoneupconsiderablyrecently.2)Whatwasthecounter-offermadebyMrKeith?v10%offforordersover10000units.3)DidMrGaoacceptMrKeithscounter-offer?vNo,buthewouldgiveMrKeithaspecialdiscountof5%.4)WhatwasthefurtherpriceconcessionmadebyMrGao?vHewaspreparedtomakethisbusinessanexceptionbyreducinghispriceby7%.5)WhydidMrGaomakethisconcession?Inordertoencouragefuturebusinessandasagestureoffriendship.6)Howlongwillthisofferremainfirm?vItwillremainfirmuntiltheendofthemonth.9.2.2 Read the dialogs and then answer the following questions.1)How did Mr Huang justify his rise in price?vBecause of the substantial increase in the packing expenses and transportation cost in addition to the sharp cost rise in raw materials of 30%.2)What was the range of price adjustment Mr Huang expected?v20%.3.How will the market react to such a price according to Mr White?vSuch a high price will lead to market shrinkage.4)What did Mr White threaten to do?vHe would turn to other suppliers with a price rise of 15%.5)Why did Mr Huang agree to raise his price by 18%?vHe agreed to raise his price by 18%with a view to long term interests.6)Whats their final conclusion?vThe price will rise by 18%.A 2%discount will be allowed for orders no less than 5 000 dozen.1.Whatdoyouconcernmostaboutproductsasabuyer?2.Howdoyoujudgewhetheracertainproductishighinprice?3.Whyandhowdowedefendourpriceasaseller?PRE-READING QUESTIONS FOR PAIR WORKQuestions1)What situation does every salesperson eventually confront?Heisafraidhispriceistoohighforasuccessfuldeal.2)Why are many salespeople afraid to defend their price?Becausetheybelievethatwilldriveawaycustomers.3)How should we justify our price according to the passage?Weshouldgiveourpricelegitimacy,focusonthevalueofourproduct/service,andassureourcustomersofoursincerity.4)What advice does the passage give for making concessions?Dontmakeunilateralconcessions.Wheneveryougivesomethingaway,getsomethinginreturn.5)Why and how do we qualify our prospective buyers?Therearealwayssomecustomersoutofyourpricerange.Whenyouresuspecting,simplyask:“Whatkindofbudgetarewelookingat?”or“Whatrangearewelookingathere?”6)How can we satisfy our customers without lowering our price?The advices are:(1）Beagoodlistener.Allowthemtogettheirgripesaboutyourpriceofftheirchest.Theywillthankyouforbeingpatientwiththem.(2）Helpthemtoacceptyourfeebyprovidingreasonablejustification.(3）Sellyouruniquestrengths.7)Can you give some advice for defending your price?(Open)In this part you are going to learn how to write a letter of counter-offerWHAT TO INCLUDE IN A COUNTER OFFER A satisfactory letter of counter-offer should cover the following points:1.Expressthebuyersthankstothesellerfortheoffer.2.Expressregretatthebuyersinabilitytoaccept.3.Makeacounter-offerif,inthecircumstances,itisappropriate.4.Expresshopesofmutuallybeneficialbusinesscooperation.Buyers counter-offer for bicyclesDear Sirs,Thank you for your letter about the offer for the bicycles.Although we appreciate the quality of your bicycles,we regret to say that their price is too high to be acceptable.Referring to the Sales Confirmation No.89SP-754,you will find that we ordered 1000 bicycles with the same brand as per the terms and conditions stipulated in that Sales Confirmation,but the price was 10%lower than your present price.Since we placed the last order,price for raw materials has decreased considerably Retailing price for your bicycles here has also been reduced by 5%.Accepting your present price will mean great loss to us,let alone profit.We would like to place repeat orders with you if you could reduce your price at least by 2%.Otherwise,we have to shift to the other suppliers for our similar request.We hope you take our suggestion into serious consideration and give us your reply as soon as possible.Yours truly,Sellerscountercounter-offerDear Sirs,Thank you for your letter of 20 July 2006.We are disappointed to hear that the price for our flame cigarette lighters is too high for you to work on.You mention that Japanese goods are being offered to you at a price approximately 10%lower than that quoted by us.We accept what you say,but we are of the opinion that the quality of the other makes does not measure up to that of our products.In these days,we have received a lot of enquiries from European buyers and we believe our price is fixed at a reasonable level.Although we are keen to do business with you,we regret that we cannot accept your counter offer or even meet you half way.The best we can do is to reduce our previous quotation by 2%.We trust that this will meet with your approval.We hope you would accept this price and place your order at an early time.Yours faithfully,Writing PracticeTask 1Compose a letter of counter-offer,asking for price reduction based on the following terms in the offer you have received from the seller.Commodity:BlueSkyBrandMensShirtsSpecifications:White,longsleeves,madeof80%rayonand20%cottonSizes:L20%,M50%,S30%Packing:Eachinapolybag,10dozentoacartonQuantity:2,000dozenPrice:US$400perdozenCIFNewYorkShipment:October/November,2006Payment:ByirrevocableL/Cpayablebydraftatsight Task 2:Exchangeyourcounter-offerletterwithyourpartnersandthendraftacountercounter-offerbasedontheletteryouhavereceivedfromyourpartner,decliningthebuyersrequestforthepricereductionunlessthebuyerdoublesthequantity.Practice makes perfectWe will practice what we have learnt in this unit.Yes,lets do it!1.Questions and Answers What would you say?1.A:Youve raised the price!May I know what has caused the increase?B:_.2.A:Our users are under the impression that your prices are usually on the high side,compared with those of other suppliers.B:_ 3.A:What would you say to reducing your price by 10%?B:_ 4.A:We expected the price to be lower.B:_ 5.A:_ B:OhIm afraid that wont do.It simply cant stand such a big cut.6.A:_ B:If its a large order,a discount is possible.7.A:Im afraid we can only offer a 5%discount.B:_ 8.A:We hope that youll take the initiative and bridge the gap.B:_ 9.A:_ B:You cant take price separately from quality.10.A:To get business under way,we take your price.B:_ 2.How do you comment on the price?1)IfthepriceishighA:Thepriceistwiceoftheothercountries(其他国家的两倍).B:Itismuchhigherthanthatofothersuppliers(其它供货商).C:Imafraidyourpriceisonthehighside(偏高).2)IfthepriceisreasonableA:Yes,thepriceisrealistic(合乎实际的).B:Itisa(n)reasonable/feasible/practical/attractiveprice.C:Consideringtheriseofthecostofeverything,thispricereasonable/stillreasonable/withinouracceptance.3)IfthepriceisnotacceptableA:Wecantacceptit.B:Thepriceisbeyondacceptance/ourability.C:Imafraid,thepriceistoohightobeacceptable/unacceptable/unattractive/impractical/unworkable.4)IfthepriceisacceptableA:Yes,wecanaccept/takeit.B:Yes,thepriceisacceptable,thoughitishigherthanthatofyourcompetitors(比你竞争对手的要高)C:Consideringitshighquality/grade/standardofyourproduct,thepriceisstillwithinacceptance.5)IfyouthinkyourpriceislowenoughA:Thepricehasbeenreducedtoitsminimum/thebottom/itslimit(极限).B:Ourpriceismoderate(适中).C:Ourpriceispracticalandreasonable（实际的和合理的）.3.Presentation PracticeMake a short presentation on one of the following topics.Try to find as much information as you can from different sources available for your talk.vHow should the seller defend the price?vHow should the buyer negotiate the price?vRelevant topics of your own choice4.Translation Practice1)与其他供应商相比，我们的价格还是很优惠的。Our prices still compare very favorably with those offered by other suppliers.2)我要说的是你方价格如果不降到国际市场价格水平，你们就没有希望做成生意。What I want to say is that youll stand no chance if you dont bring your price into line with the world market.3)我相信没有哪个厂家会接受你的价格，因为这几乎连生产成本也赚不回来。I believe no manufacturer would accept your price because it can hardly cover our production cost.4)你方的价格将在我方市场超过所以同类产品的价格，这将导致贵公司产品在我市场上销售的萎缩。Your price for the same products will be the highest in our market,which will no doubt result in shrinkage of the market for your products.5)正是考虑到我们的长期的业务合作，我们才把上涨幅度限制在百分之二十。It is in view of our long-term business cooperation that we limit the increase to 20%.6)我们希望你再考虑一下你方价格，报一个新价，这样才有可能互相让步，达成协议。Wehopeyouwillreconsideryourpriceandmakeanewbid,sothattherecanbeapossibilityofourmeetinghalfway.7)如果订货量大的话，我想可以适当让利。Ifyouplacealargeorder,Ithinkadiscountwouldbepossible.8)由于最近原材料价格上涨，百分之三的折扣是我方能提供的最大的折扣。A3%discountisthebestwecanoffer,becausethepricesofrawmaterialshavegoneuplately.9)除非你们价格做出大的变动，否则我们成交的可能性很小。Unlessyoucanseeyourwaytoimproveyourpricesubstantially,thechancesofourclosingthedealareratherslim.10)为了进一步扩大业务往来，也为了表示我们的诚意，我方准备破例减价5%。Inordertoencouragefuturebusinessandasagestureoffriendship,wearepreparedtomakethisanexceptionbyreducingourpriceby5%.Seller:USD 2000 M/T FOB Shanghai.Buyer:your price too high,our workable price USD 1800.Seller:price here has suddenly increased to USD 1900.Buyer:the best we accept USD 1850.Seller:impossible to accept USD 1850 unless quantity increased by 50%.Buyer:accept USD 1850 with quantity increase by 50%for prompt shipment.1)Make a dialogue according to the following procedures:offer counter-offer acceptance.5.Role Play2)You are negotiating with one of your old customers,David Cook,about the rise of the prices for the coming season.Your notes:to raise the prices for the coming seasonreasons:material costs up 20%;labor costs up 15%;overheads increased by 15%no agreement reached;meeting sometime next week again David Cooks Notes:Costs up?-why cant you absorb them like other suppliers and we also have to keep ours downAsking for detailed explanationAgreeing to meet next week again 3)Youaregoingtoordervideophonesfromyourbusinesspartner,butyoufindthepriceistoohightobeacceptable.Soyouarecounterofferingtohave3%tradediscount.Thereasons:1)asagestureofgoodwill2)asanewproduct3)toopenthemarketinourarea4)toplacealargeorder5)togetthebusinessstarted6)tomakethepriceinlinewithothersuppliers