Business English negotiation scenario dialogue

Dan Smith is an American fitness products dealer, and this is the first time Robert Liu has played against him. In just a few minutes of conversation, Robert Liu felt that this big man's rough appearance concealed a cunning mind - he must be a veteran on the battlefield, and he must not take it lightly. The first exchange between the two sides was as follows:

D: I'd like to get the ball rolling by talking about prices.

R: Shoot. I'd be happy to answer any questions you may have.

D： Your products are very good. But I'm a little worried about the prices you're asking.

R： You think we about be asking for more?(laughs)

D： (chuckles smile) That's not exactly what I had in mind. I know your research costs are high, but what I'd like is a 25 discount.

R: That seems to be a little high, Mr. Smith. I don't know how we can make a profit with those numbers.

D: Please , Robert, call me Dan. (pause) Well, if we promise future business—volume sales—that will slash your costs for making the Exec-U-ciser, right?

R: Yes, but it's hard to see how you can place such large orders. How could you turn over (selling chime) so many? (pause) We'd need a guarantee of future business, not just a promise.

D： We said we wanted 1000 pieces over a six-month period. What if we place orders for twelve months, with a guarantee?

R： If you can guarantee that on paper, I think we can discuss this further.

Business Negotiation Example (2)

After Robert returned to the company to submit Dan’s proposal, the boss was very satisfied with the other party’s purchase. plan; but in terms of discounts, I hope Robert can continue to maintain a tough attitude and try his best to find out the other party's bottom line.

On this price seesaw, can the two parties find a balance point for each other? Please see the breakdown below:

R: Even with volume sales, our coats for the Exec-U-Ciser won't go down much.

D: Just what are you proposing?

R: We could take a cut on the price. But 25 would slash our profit margin. We suggest a compromise - 10.

D: That's a big change from 25! 10 is beyond my negotiating limit. (pause) Any other ideas?

R： I don't think I can change it right now. Why don't we talk again tomorrow?

D： Sure. I must talk to my office anyway. I hope we can find some common ground on this.

NEXT DAY

D: Robert, I've been instructed to reject the numbers you proposed; but we can try to come up with some thing else.

R: I hope so, Dan. My instructions are to negotiate hard on this deal—but I'm try very hard to reach some middle ground (mutual compromise).

D： I understand. We propose a structured deal (staged peace treaty). For the first six months, we get a discount of 20, and the next six months we get 15.

R：Dan, I can't bring those numbers back to my office──they'll turn it down flat.

D： Then you'll have to think of something better, Robert.

Business Negotiation Example (3)

Dan last time proposed giving them a 20% discount in the first half of the year, and then reduced it to 15% in the second half of the year. After Robert overturned it, Dan repeatedly stated that his concessions were limited.

You know that Robert is swimming in the discount gap, how can you find a number that both parties agree on? What clever idea did he take out of his bag? Please see the breakdown below:

R: How about 15 the first six months, and the second six months at 12, with a guarantee of 3000 units?

D: That's a lot to sell, with very low profit margins.

R： It's about the best we can do, Dan. (pause) We need to hammer something out today. If I go back empty-handed, I may be coming back to you soon to ask for a job. (smiles)

D： (smiles) O.K., 17 the first six months, 14 for the second?!

R ： Good. Let's iron out the remaining details. When do you want to take delivery?

D： We'd like you to execute the first order by the 31st.

R: Let me run through this again: the first shipment for 1500 units, to be delivered in 27 days, by the 31st.

D: Right. We couldn't handle much larger shipments.

R： Fine. But I'd prefer the first shipment to be 1000 units, the next 2000. The 31st is quite soon ---- I can't guarantee 1500.

D: I can agree to that. Well, if there's nothing else, I think we've settled everything.

R: Dan, this deal promises big returns for both sides. Let's hope it's the beginning of a long and prosperous relationship.