(A = Secretary, Susan; B = Fred Lim; C = Tom)

A: Hello, Tom Grossman’s office. How may I help you?

B: Hi, Susan. This is Fred Lim from MicroMax. Is Tom available for a second? 

A: One moment, please. I’m connecting you now.

C: Hey, Fred. What's up?

B: Well, I was going to send you an e-mail, but I thought it might be better for me to call 

C: Uh. Sounds serious.

B: It's about the last order your company placed with us.

C: Let's see...you mean the order for six containers of chipboards?

B: Yep, that’s the one. Now I know we originally agreed on the price, but there's a little problem. Yesterday one of our major suppliers notified us that they are raising prices. 

C: That's never good.

B: Also, due to recent jumps in energy prices, our shipping agent is also upping fees. I guess that we just can’t offer our product at the original price anymore.

C: But Fred, this order is already in! I made it two weeks ago! You can’t change prices on me like this.

B: I understand your position, Tom. But if we fill your order as it was, we lose money. If we can’t find some kind of compromise, I’m afraid our company might have to cancel the order all together.

C: Well, how much more are you asking for?

B: We need to ask for another --are you sitting down? --25%. 

C:25%! That's a huge increase, Fred!

B: Tom, you are one of our most valued customers. Your business is very important to u

but this situation is out of our hands.

C: I understand that your company needs to make a profit. But it’s going to be very hard for

me to pass on these increases to our customers.

B: I feel your pain, Tom. We are also in hot water these days. The global financial crisis is hitting all of us hard.

C: Is there any way we could cut costs in other areas? Could we find a new shipping agent? 

B: Yes, we could do that. But in the end it still comes down to protecting our bottom line. 

C: Look, I understand that prices for everything are going up these days. It’s a tough time to

be in business. My company had to lay off over 100 employees last summer; but 25% is just too much.

B: You and I go a long way back, Tom. I’ll do everything in my power to be flexible.

How about 22%?

C: It’s still too high. Our board of directors is already going to give me a hard time over this Can you do better?

B: Tom, seeing as I’ve known you for over 10 years and because this price increase really came out of the blue, I think I can go down to 20% But that’s really the best I can do. 

C: How about this: I'll pay 15% more for this shipment. Then for the next order we'll boost it up to 18%.

B: You certainly know how to drive a hard bargain. OK... How about 18% for this one and a 21% increase for next time?

C: I think I can do that. OK... Fred, you've got yourself a deal.

B: I appreciate your understanding, Tom. And I’m quite sorry for the trouble this has caused you.

C: Ah, that's all right. I know it's not your fault. Prices for everything these days are insane.