chapter-18-Negotiating-prices

Unit18NegotiatingpricesNEUSchoolofBusinessAdministration2/Chapter18BackgroundLasttime,DannyMcNeilinvitedEdwardtothewarehouseandshowedhimhowEromartoperatedonbusiness.Thesuccessformulaishighervolumesofsaleswithsmallermargins.Donwasstuckinameeting,therefore,EdwardwasauthorizedtodealwithDanny.Now,Let’stakealookatthestoryandseehowEdwardmakesnegotiationonpricewithDannyMcNeil,thepotentialbigbuyer.NEUSchoolofBusinessAdministration3/Chapter18ObjectivesSAYINGWHATYOUWANT提出要求MAKINGOFFERS报价RESPONDINGTOOFFERS讨价还价NEUSchoolofBusinessAdministration4/Chapter18Inthisunit...EdwardGreenstartsthenegotiationwithDannyMcNeil.EdwardtelephonesDonBradleyduringabreakandgetssomeusefulinformation.DonarrivesafterEdwardhasclosedthedeal.NEUSchoolofBusinessAdministration5/Chapter18Newwordsandexpressionstoconduct进行authority权力/代理权toresolve解决break休息clarify请清楚，阐明unitprice单价mark-up加价standard标准，规格unacceptable不能接授的termsofpayment付款条件finaloffer最终报价alargeorder一张大量的订单turndown拒绝Justletmefinish.../Pleaseletmefinish...请让我讲完CanIcomeinhere?我能在这里插话吗？NEUSchoolofBusinessAdministration6/Chapter18NEUSchoolofBusinessAdministration7/Chapter18Counter-standpointsObviously,eventhoughallDannyMcNeilhasbeentalkingaboutisthelargestdiscount.However,Edwardwon’tmakeafastconcessionforthefirstoffer.Inthefollowingpart,wecanseeEdwardandMr.McNeilaretakingdifferentstandsintermsofdiscount、priceandsizeoforder,etc.NEUSchoolofBusinessAdministration8/Chapter18Counter-standpointsDANNYMCNEIL:Beforewebegin,areyousurethatyouareinapositiontoconductthisnegotiation?EDWARDGREEN:Yes,Ihavetheauthoritytonegotiatewithyou.DANNYMCNEIL:Right.Let'sgetdowntobusiness.EDWARDGREEN:WhichofourproductlinesareyouparticularlyinterestedinMr.McNeil?DANNYMCNEIL:IcouldbeinterestedintheseonesthatIhaveoutlinedhere.ButIwanttohearwhatyousayaboutdiscounts.EDWARDGREEN:Let'stalkspecificallyaboutBigBoss.DANNYMCNEIL:Let'sbeclearaboutonething.Ihopeyourealizethatwemusthaveamuchlargerdiscountthanwhat'sonthetablenow.EDWARDGREEN:Ithinkthediscountproblemcanberesolvedbutyouneedtobemorepreciseaboutnumbers.DANNYMCNEIL:Fairenough.Whatkindofdiscountareyouofferingontenthousandunits?EDWARDGREEN:Ontenthousandunits,Mr.Mcneil,Icanofferadiscountofthirtypercent.ButIcan'toffermoreDANNYMCNEIL:30percent!EDWARDGREEN:Justletmefinish,30percent,butwithaguaranteeofdeliverywithintwomonths.DANNYMCNEIL:DeliverymustbewithintwomonthsorI'mnotinterested.I'mofferingyouthechancetomakeaverylargesaleandyouareturningitdownbecausewe're...EDWARDGREEN:CanIjustcomeinhereMr.McNeil?Ihaven'tturnedanythingdown.Ihaven'tsaidno.Iamjustsayingthatontenthousandunitsourdiscounttermsarethirtypercent.NEUSchoolofBusinessAdministration9/Chapter18DANNYMCNEIL:But…EDWARDGREEN:Pleaseletmefinish.NowifyoucommittobuytwentythousandunitsthenIcouldconsideralargerdiscount.DANNYMCNEIL:Howmuchlarger?EDWARDGREEN:IfyoucommittotwentythousandunitsthenIcanofferathirty-fivepercentdiscount.DANNYMCNEIL:Thirty,thirtyfivepercent.I'mgettingtiredofthis.Youareplayinggames.Iamlookingforalargediscount,andIhopethatyou'regoingtooffermeone.EDWARDGREEN:Ifyouwantabigdiscountthenyoumustmaketheorderabigone.Let'stalkaboutunitpriceratherthandiscount.Ourstandardunitpricetothewholesaleris23.5.DANNYMCNEIL:AndI'mnotinterestedin23.5.EDWARDGREEN:Yes,IknowthatMr.McNeil.Ifyoubuy40,000units,thenIcanofferaunitpriceof19.5.Whatwillyourmark-upbeontheBoss,3,3.5,4?DANNYMCNEIL:Aboutthat.EDWARDGREEN:Withthosefiguresyou'regoingtobeverycompetitive.NEUSchoolofBusinessAdministration10/Chapter18DANNYMCNEIL:19.5unitprice?EDWARDGREEN:Ifyoubuy40,000units;thatrepresentsadiscountof...DANNYMCNEIL:Ihaveacalculator,too.Icanseewhatthediscountis.Offermeaunitpriceof19.5on25,000unitsandwecandobusiness.EDWARDGREEN:Ican'tdothat.I'msorry.DANNYMCNEIL:Let'sbreakforafewminutes.I'vegotafewthingsIhavetoseeto.I'llbeacoupleofminutes.Wouldyoulikeacupofcoffee?EDWARDGREEN:Yes,please.DANNYMCNEIL:Helpyourselftothephoneifyouwanttomakeacall.EDWARD:Thanks.NEUSchoolofBusinessAdministration11/Chapter18DONBRADLEY:DonBradley.EDWARDGREEN:Hi,Don.How'sthemeeting?DONBRADLEY:It'sjustfinished.I'monmywayover.How'syourmeeting?EDWARDGREEN:He'sdefinitelyinterested.We'rehavingabreak.DONBRADLEY:What'sthesituation?EDWARDGREEN:It'sbecomingdifficult,we'restuckonthesizeoftheorderforBigBoss.Hewantsaunitpriceof19.5onanorderof25,000.DONBRADLEY:Thatsoundsgoodtome.EDWARDGREEN:Ithinkwecanpushhimfurther.DONBRADLEY:Doyouthinkso?EDWARDGREEN:Ithinkso...Ihopeso.DONBRADLEY:Becareful.He'sacleverman.I'vedealtwithMcneilbefore.Whenhestartsbangingonthetable,that'sasfarasyoucangowithhim.Goodluck!NEUSchoolofBusinessAdministration12/Chapter18EDWARDGREEN:Thanks.Solet'sclarifythepositionsofar.AsfarasBigBossisconcernedwehaveagreedonaunitpriceof20for30,000,andIcan'tgobelowthatpriceforanorderofthissize.Nowlet'slookattermsofpayment.DANNYMCNEIL:Ninetydays.EDWARDGREEN:I'msorryMr.Mcneil,butthat'scompletelyunacceptable.Ourstandardpolicyondiscountsofoverthirtypercentispaymentwithinthirtydaysofdelivery.DANNYMCNEIL:Thisisnotastandardsituation.Iammakingaverylargeorder...EDWARDGREEN:CanIjustcomeinhere,Mr.Mcneil?Iknowyo