D: I want to talk about the price first.
R: shoot. (All ears) I'll be happy to answer any questions you have.
D: Your products are very good. But I'm a little worried about the price you want.
Do you think we will ask for more? (Laughter)
D: (giggling) This is not what I want. I know your research costs are high, but what I want is a 25% discount.
R: Mr Smith, the price seems a little high. I don't know how we can profit from these figures.
Robert, please call me Dan. (pause) Well, if we promise future business sales, it will cut down your cost of manufacturing Exec-U-ciser, right?
Yes, but it's hard to imagine how you can place such a large order. How can you go through so much? (pause) We need the guarantee of future business, not just the promise.
D: We said we need 1000 pieces in six months. What if we guarantee to place an order for 12 months?
If you can promise in writing, I think we can discuss it further.
Examples of Business Negotiation (2)
After Robert returned to the company to report Dan's proposal, the boss was very satisfied with the other party's procurement plan; But in terms of discounts, I hope Robert can continue to be tough and try to find out the other side's bottom line. On this price seesaw, can both sides find a balance point? Please check the following breakdown:
R: Even if it is sold in large quantities, our manager's coat won't be reduced much.
D: What's your suggestion?
R: We can reduce the price. But 25% will cut our profit margin. We suggest a compromise-10%.
D: compared with 25 years old, it has changed a lot! 10 exceeds my negotiation limit. (pause) Any other ideas?
R: I don't think I can change it now. Why don't we talk tomorrow?
D: of course. I must talk to my office anyway. I hope we can find something in common on this point (* * * the same belief).
the next day
D: Robert, I have been instructed to reject the figures you put forward; But we can try to think of something else.
I hope so, Dan. My instructions are to negotiate hard on this deal-but I'm trying to reach some kind of compromise.
D: I understand. We propose a structured transaction. 20% discount for the first six months and 15% for the last six months.
R: Dan, I can't take these figures back to my office. They will flatly refuse.
D: Then you have to think of a better way, Robert.
Examples of Business Negotiation (3)
Last time, Dan offered to give them a 20% discount in the first half of the year, and then reduced it to 15% in the second half. After Robert was overthrown, Dan repeatedly said that there was a limit to concessions. You know Robert is hovering in this discount gap. How can he find out the figures that both sides agree on? What tricks did he take out of the toolbox? Please refer to the following breakdown:
R: 15% in the first six months, and 12% in the last six months. How about 3,000 units?
D: that's a lot to sell, and the profit is very low.
R: This is the best we can do, Dan. (pause) We need to finalize something today. If I return empty-handed, I may come back to you for a job soon. (smiling)
D: (smiling) OK, the first six months were 17%, and the second month was 14%? !
R: good. Let's work out the remaining details. When do you want to pick up the goods?
D: We hope you can execute the first order before 3 1 day.
R: Let me repeat: the first batch of goods is 1500 pieces, which will be shipped by the freighter 3 1st within 27 days.
D: right. We can't handle more goods.
Receptionist: OK. But I hope the first batch is 1000 pieces, and the next batch is 2000 pieces. 3 1st is quite fast-I can't guarantee 1500.
D: I agree. Well, if there is nothing else, I think we have solved everything.
R: Dan, this transaction has great returns for both parties. Let's hope this is the beginning of a long-term prosperous relationship.