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2. How do you make preparations for a negotiation?

3. Do you know how to bargain with the other party? Please list some English expressions.

Situational Dialogues

Negotiation over the price

A: We have received your sample and find that the quality is in conformity with our requirements. So business depends on your prices now, and what’s the unit price for the sunglasses?

B: Our unit price for retail is $30.

A: I’m afraid your price is prohibitive. Could you bring down your price?

B: Our price is reasonable for retailers. So how many do you plan to order?

A: 30 000 pieces. This is a large order.

B: Well, we can offer you a wholesale price for $25 per unit.

A: I’ m afraid it’s still on the high side. Business is impossible for such a high price. Could you please quote us your lowest price?

B: $25 is already the rock bottom price we can offer. Please also note that our sunglasses are of superior quality.

A: Good quality is a must, otherwise we won’t order. I wonder if there is any discount for your products.

B: Sure, how about 3% discount for your 30 000-piece order?

A: Actually, I’m looking for a larger discount. Your price is not so attractive.

B: Our discount depends on the size of your order. We can give you a 5% discount if you can

increase your order to 45 000 units.

A: 5% for a larger order. Okay, it sounds acceptable.

A: Mr. Vigor, we have studied your offer on the printed pure silk fabrics carefully, and find that your prices have soared! They’re approximately 20% higher than those of last year. It would be impossible for us to make any purchase at such prices.

B: 20%? You can’t be serious, Mr. Cook. Besides, the cost of production has risen a great deal in recent years. What’s more, it pays to buy goods of better quality. I think you can’t avoid considering the quality of products, and the quality of our products are guaranteed.

A: You’re right here. But we only ask your price to be comparable with others. That’s reasonable, isn’t it?

B: As you wish. Well, if your order is large enough, we are ready to reduce our price by 2%.

A: If that’s the case, there is hardly any need for further discussion. We might as well call the whole deal off, and our negotiation will terminate half-way.

B: What I mean is that we’ll never be able to come down to the price you offer. The gap is too great. You know our products are of high quality. Taking the quality into consideration, I think the price is reasonable.

A: I think we should make a further concession so that business can be concluded. I suggest we meet each other halfway.

B: The best we can do is to reduce 20 dollars. And the price has been carefully calculated and cut to the limit.

A: OK, I’m glad that we’ve come to an agreement on the price.

Negotiation over the payments

A: Mike, what is the quotation of the 2 types you’re recommending?

B: Well, under which terms do you wish to enquire? FOB or CIF, and which port?

A: FOB Shanghai port. We have our own forwarder.

B: Another question, may I know your potential consumption? As you know, the quotation for FCL and LCL is a little different for the freight cost.

A: I want to know your quote at 1*20FCL. Our annual consumption on these 2 types are about 30mts each.

B: In this condition, the prices for these 2 types are US$21/kg for PowCarbon^® B and US$13.5/kg for PowCarbon^®1000G. This quotation is made according to your consumption.

A: Then how about the payments?

B: T/T in advance or L/C at sight.

A: We prefer 50% T/T at sight and 50% T/T after the first sight of the copy of B/L. It is our normal method with other suppliers.

A: And how about the delivery time?

B: The delivery time is usually 15 days after we get your signed order.

A: It is good. I have noted it down. Thanks.

1. retailer: 零售商

2. wholesaler: 批发商

3. soar: 高涨，高飞

4. approximately: 大约

5. FOB:（起运港）船上交货，离岸价（free on board）

6. CIF: 到岸价（cost, insurance and freight）

7. FCL: 整箱货，整拆（full container load）

8. LCL: 拼装货，拼装，拼拆（less than container load）

9. L/C: 信用证（Letter of Credit）

10. T/T: 电汇（Telegraphic Transfer）

1. The quality is in conformity with our requirements. 质量与我方的要求一致。

　The quality is satisfactory to us. 质量令人满意。

　The quality conforms to our requests. 质量能够符合我方的要求。

2. Your price is prohibitive. 你方价格过高。

　Your price is too high to be acceptable. 你方价格高得令人却步。

　Your price is out of line with the prevailing market. 你方价格过高，与市场价格不符。

3. Could you bring down your price? 您能降低价格吗？

　Could you lower/reduce/cut down your price? 您能降低价格吗？

　Can you make further reduction?您能再进一步降价吗？

4. the rock bottom price　最低价

　the cost price　成本价

　the lowest price　最低价

5. I’m looking for a larger discount. Your price is not so attractive.

　我想要更多的折扣，你的价格并不是很有吸引力。

　I want to enjoy more discount, for your price is not so favorable.

　我想要更多折扣，因为您的价格并不是很优惠。

　I want to get more discount, for your price is not so competitive.

　我想得到更多折扣，因为您的价格并不是很有竞争力。

6. You can’t be serious. 您不是认真的吧。

　You couldn’t be serious. 您这话一定不是认真的。

　Are you kidding/joking? 您在开玩笑吗？

7. I think you can’t avoid considering the quality of products.

　我认为您得考虑到产品的质量。

　I think you should consider the quality of products. 我认为您应该考虑产品的质量。

　I think you should pay more attention to the quality of products.

　我认为您应该更加关注产品的质量。

8. If that’s the case, there is hardly any need for further discussion.

　如果那样的话，就没必要再继续商谈下去了。

　If that’s the case, it is unnecessary to have any further discussion.

　如果这样的话，讨论也没有必要继续了。

　In that case, it’ll be very difficult to proceed with our talk, and there is no point in discussing it any more.

　那样的话，我们的商谈就很难进行下去了，再讨论也没有任何意义。

9. We’ll never be able to come down to the price you offer.

　我们不可能把价格降到您说的那样。

　We’ll not be able to make any concessions in the price.

　我们无法在价格上作出任何让步了。

　We’ll not in the position to reduce the price as your expectation.

　我们不能把价格降到您期望的那样。

10. The gap is too great. 价格差距太大。

　The difference between us is too great. 我们双方的价格悬殊太大。

　There is really a wide gap between your price and mine. 我们之间的价格差距太大。

11. And the price has been carefully calculated and cut to the limit.

　而且这个价格已经经过仔细核算，降至最低了。

　We have kept the price close to the cost of production.

　我方已经把价格压到生产成本的边缘了。

　The price has been carefully calculated and cut down to the cost level.

　这个价格已经经过仔细核算并且降到成本费的水平了。

12. in this condition 在这样的条件下，这样的话

　in this case　这样的话

　in that case　那样的话

13. So how about the payment? 付款条件是什么样的？

　What are the payment terms? 你们对于付款条件有什么要求？

　And for the terms of payment, what do you usually require? 你们通常要求什么付款条件？

14. It is our normal method with other suppliers. 这是我们与其他供应商合作的通常做法。

　It is our usual practice with other suppliers. 这是我们与其他供应商合作的惯例。

　It is our frequently used method with other suppliers. 这是通常我们与其他供应商合作的方式。

15. I have noted it down. 我已经记下来了。

　I have jotted it down. 我已经写下来了。

　I have taken the notes. 我已经记录下来了。

Task 1: Interpretation

1. Can you supply from stock?

2. Is your offer a firm one or one subject to final confirmation?

3. You’ll see that our offer compares favorably with the quotations you can get elsewhere.

4. If the first lot is good in quality, we’d like to place a substantial order with you.

5. In view of our long and friendly relations, we set it as an exception to accept the price this time.

6. 感谢贵方在价格上作出的让步。

7. 如果贵方坚持这个价格，这将使我方无利可图。

8. 你方的发盘很有吸引力，但是我方要求信用证支付。

9. 我们的惯例是对于超过1 000件以上的订单给予2%的折扣。

10. 考虑到长远的合作，我方此次接受付款交单的支付方式。

Work in groups of four. Two of you act as Chinese exporters and the other two as Canadian importers. Each of you is given an appropriate title. The Canadians want to buy 30 000 pounds of Chinese black tea. Now, negotiate for an agreement on this deal.

1. What elements should be considered about inquiry?

2. How should businessmen make a satisfactory offer?

Task 4: Reading and Speaking

In international trade, both the exporter and importer face risks in an export/import transaction as there is always the possibility that the other party may fail to fulfill the contract.

For the exporters there is the risk that the importer fails to pay or he might not pay in full for the goods. The major reasons for this are: the importers might go bankrupt; the importer’s government might ban imports of certain commodities; or the importers might run into difficulties getting the foreign exchange to pay the goods. Another possibility is that the importers are not reliable and simply refuse to pay the agreed amount of money.

On the other hand, for the importers there is the risk that the goods will be delayed and they might only receive them a long time after paying for them. It may be caused by port congestion or strikes. Delays in fulfillment of orders by exporters and difficult customs clearance in the importing country can lead to loss of business. It is even possible that the wrong goods might be sent.

In order to guard against such possibilities, different methods of payment have been developed. In general, there are three basic methods of payment in international trade: remittance, collection and letter of credit.

1. What is the risk for the exporters according to this passage?

2. What are the major reasons for the importers not to pay?

3. Why are the goods delayed sometimes?

4. How many basic modes of payment are there in international trade according to this passage? What are they?

5. What should you do when the other party fails to fulfill the contract?

mode of payment　付款方式　　　　　　　deferred payment　延期付款

payment by installment, progressive payment　分期付款

payment by banker　银行支付　　　　　　payment by remittance　汇拨支付

pay on delivery ( P.O.D.)　货到付款　　cash on delivery(C.O.D)　交货付现

D/P (Documents against Payment)　付款交单

D/A (Documents against Acceptance)　承兑交单

draft/bill of exchange　汇票　　　　　　clean bill/draft　光票（不附单据）

sight bill/draft　即期汇票　　　　　　　term/time bill　远期汇票

remittance　汇付　　　　　　　　　　　　mail transfer(M/T)　信汇

demand draft(D/D)　即期票汇　　　　　　 collection　托收