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Successful Negotiations
A multimedia business English study guide to negotiating effectively in English
Written by
James Moss
Paul Meredith
Online activities by
All rights reserved. No part of this book may be used or reproduced without written
permission, except in the case of brief quotations embodied in critical articles or reviews.
Published 2009
Table of Contents
(Click a unit title to jump to the start of that unit)
1. Introduction pg 4-5
12. Online Flash Quizzes (click here to view the online activities)
Successful Negotiations
This is an e-book brought to you by Business English Pod, the leading provider of
on-demand training for business English communication skills, available on the
Web at www.businessenglishpod.com.
In all, this e-book has over four hours of information-packed audio lessons. The
accompanying study notes contain a complete transcript of every lesson,
vocabulary definitions, extra practice questions, and study strategies. And you
can access over 90 interactive Flash exercises via the Business English Pod
website and the activity links in this e-book.
In each lesson, well introduce the topic, then youll hear a dialog that
demonstrates the key language. Afterwards, in the debrief section, well take
you through the main points and explain important vocabulary and idioms. For
each skill, well learn more phrases that you can use. Then, finally, in the
practice section of each debrief, you will have the opportunity to practice the
language you covered in the lesson.
Learners often ask me how to study more efficiently and effectively. I have some
suggestions. Listen to each chapter and practice the example phrases multiple
times. First listen without the transcript; then, when you have time, go back and
listen again with the transcript. Underline and look up words you dont
understand. Its important to study vocabulary in context: Pay attention to
collocations, or word partnerships, and words in whole sentences, with their
accompanying prepositions and other grammatical characteristics.
Do the practice section of each debrief at least a couple times; try substituting
different language the second time you practice. Substitution helps you increase
your fluency, that is, your ability to say the same thing in many ways. You can
also record yourself, write and act out dialogs, and practice together with a
learning partner. These and many more strategies are covered in the study
notes for each chapter.
Whats Included?
All Business English Pod e-books come with a variety of study resources to
provide learners with maximum flexibility and value.
You can access and download all the materials for this e-book on this webpage:
www.businessenglishpod.com/learningcenter2/ebooks/business-english-negotiations-ebook
Listening Questions
Dialog
Interviewer: What do you think are some of the top mistakes people make
going into a negotiation?
Brian: Well, a lot of the most common mistakes usually start before the
negotiation even begins.
Brian: Yes, of course, but they are just tactical questions. None of them can
be answered without developing a coherent strategy first.
Brian: There are several factors to consider. The first one is what youll do if you
dont come to an agreement this is often called your BATNA, or best
alternative to a negotiated agreement.
Brian: Not necessarily. Your BATNA is what is already available, so your bottom
line should be better. Otherwise theres nothing to be gained from negotiation.
Brian: And in determining the best alternative, we have to look at more than
just the offers that we currently have on the table, and we have to take other
factors into consideration than just the price. For example, there may be other
ways to structure the deal, more potential buyers out there, or deal
sweeteners, such as payment in cash instead of credit.
Brian: Well, win-win has become a bit of a clich. But lets take a look at the
original meaning of the word: Of course we are both trying to get the best deal,
but consider this: If I am selling, and you are buying, and my bottom line is
lower than the highest price you are willing to pay, then we call that overlap the
zone of possible agreement. Reaching a compromise anywhere in that
zone is a win-win solution. Its just a matter of swapping concessions to get
there.
Lets review the vocabulary and concepts that Brian uses to introduce the topic
of negotiations.
How does the dialog begin? The interviewer asks Brian about the top mistakes
people make in a negotiation. Surprisingly, Brian replies that the most common
mistakes actually start before the negotiation begins. What are those mistakes?
Listen again.
Brian says people have an overemphasis that is, too much emphasis on
price. The verb form is to overemphasize. This word is useful for describing
situations in which someone pays too much attention to something, often to the
neglect or detriment of something else. Lets listen to a few more examples of
this expression in use.
Brian: things like, Should I put the first number on the table, or wait for
them to make the first move? Should I tell them what we really need, or
should I include some bargaining chips that we can give away later.
What are bargaining chips? In a game of cards, such as poker, we often bet
chips little round plastic discs instead of cash. Each chip represents a
certain amount of money. Idiomatically, a bargaining chip is anything that you
can bet or give away in return to something else. (For example, you may be able
to use delivery time as a bargaining chip in order to get a concession on price.)
Lets practice this idiom by listening to some more examples:
How does the interviewer respond to Brians statement that people often
overemphasize price?
Brian: Yes, of course, but they are just tactical questions. None of them can
be answered without developing a coherent strategy first.
Brians point here is that price is merely a tactical question, which cant be
answered until we first develop a coherent that is logical and consistent
strategy. What is the difference between tactics and strategy? They are often
used the same way. But heres one way to think of the difference: Tactics are
what we need to win the battle, whereas strategy is what we need to win the
war. Tactics usually refers to details, whereas strategy often refers to general
principles.
Brian: Not necessarily. Your BATNA is what is already available, so your bottom
line should be better. Otherwise theres nothing to be gained from negotiation.
Now, listen to some example phrases using BATNA and bottom line.
To determine our BATNA, we have to consider not just the other offers on the
table, but also potential buyers that we havent yet talked to.
Before you can determine your bottom line, you need to put a value on your
best alternative.
Sometimes your best alternative is to do nothing at all.
Several not-so-obvious things go into deciding your BATNA, including the
timing of the deal a bird in the hand may be worth two in the bush.
The last example includes an idiom a bird in the hand is worth two in the bush.
This means that gains we have gotten now should be valued more highly than
greater gains that are merely promised for the future.
The difference between BATNA and bottom line should now be clear. But how do
we determine our BATNA?
As Brian points out, our best alternative is not necessarily just the best offer we
have on the table, that is, our BATNA is not necessarily the best offer we have
received so far. Also, to decide our best alternative, we have to actually consider
a number of factors besides just price. What are these other important
considerations?
The first one is how the deal is structured, that is, for example, credit terms,
payment periods, legal aspects, and so on.
Second, we may want to think about other potential buyers not just the ones
we have already contacted.
Finally, there may be some deal sweeteners, which refer to factors beyond mere
price that make an arrangement sweeter, that is, more attractive.
Lets look at some example phrases with this last idiom, deal sweeteners.
If were going to get them to agree to our offer, were going to have to think
of some ways to sweeten the deal.
Why dont I sweeten the deal a little by increasing our discount by 1%?
Theres a variety of deal sweeteners that we can use to make buying our
company more attractive.
Next, the interviewer asks Brian what he thinks about the idea of a win-win
negotiation. Brian replies that win-win has become a clich, that is an expression
that is used so much that it becomes meaningless. But then he encourages us to
think about the actual meaning of win-win:
Brian: Of course we are both trying to get the best deal, but consider this: If I
am selling, and you are buying, and my bottom line is lower than the highest
price you are willing to pay, then we call that overlap the zone of possible
agreement. Reaching a compromise anywhere in that zone is a win-win
solution. Its just a matter of swapping concessions to get there.
Lets review agreement, compromise, and concessions with some example phrases.
As you listen, pay attention to collocations word partnerships between nouns and
verbs.
From these examples, we notice a couple things: First, we usually say to make a
concession and to reach a compromise. A compromise is a kind of agreement,
and a concession is something we do to reach it. Note, however, that in the last
example compromise is used as a verb. In this case, to compromise basically
means to make a concession. (For this reason, sometimes we also say to make a
compromise with a similar meaning as to make a concession.)
Now, its your turn to practice. First, well review some of the verb collocations
we just learned. In a moment, youll hear a series of sentences with a verb
blanked out or replaced with a beep. Repeat the whole sentence, supplying the
missing verb in the correct form. For example, if you hear:
Cue 2: I think we can <beep> our strong brand name as a bargaining chip.
Learner2:
Cue 2: Its too early in the negotiation to throw away <beep> chips.
Learner 2:
Cue 4: Theres a variety of deal <beep> that we can use to make buying our
company more attractive.
Learner 4:
That concludes the first in this two-part series on negotiation strategy. In this
episode, weve learned both a variety of useful language and a range of helpful
skills.
Language Review
A. Useful Vocabulary
Review useful vocabulary by filling in the blanks with words from the box.
1. If you ask me, they are ___________ rapid delivery to the detriment of
quality.
2. Since he was very flexible on warranty period, he used this as a
______________ chip to get concessions on delivery time.
3. _______________ concerns include discount and delivery; using this client
to establish a relationship in this new market is more of a
________________ concern.
4. Before you can determine your ______________ line, you need to put a
value on your best ______________.
B. Collocations
Supply the missing collocations in the sentences below to review important
negotiation vocabulary.
Study Strategy
Consider a negotiation that you have participated in. It can be anything from a
formal business negotiation to an informal personal discussion. Analyze it in the
terms that we have learned in this episode: Was there an overemphasis on
price? What did you give away as bargaining chips? What was your BATNA and
your bottom line? How did you reach a compromise?
Listening Questions
1) Brian says that a top mistake people make is to overemphasize price. More
generally, he says they focus too much on tactical questions without first
developing a coherent strategy.
2) Your best alternative to a negotiated agreement (BATNA) is what you will do
if you dont reach an agreement during the negotiation. Your BATNA is what is
already available, so your bottom line should be better than your BATNA.
3) Brian says that win-win has become a bit of a clich. However, the basic
meaning of the word is that, under normal circumstances, both parties must
benefit in order to come to a deal. In this sense, all successful negotiations are
win-win.
Language Review
A. Useful Vocabulary
1. If you ask me, they are overemphasizing rapid delivery to the detriment of
quality.
2. Since he was very flexible on warranty period, he used this as a bargaining
chip to get concessions on delivery time.
3. tactical concerns include discount and delivery; using this client to establish a
relationship in this new market is more of a strategic concern.
4. Before you can determine your bottom line, you need to put a value on your
best alternative.
B. Collocations
1. If theres going to be any agreement, its necessary for one of us to make a
concession.
2. The only way to reach a compromise is to swap/trade/make concessions.
3. To reach/get to an agreement, we had to use delivery time as a bargaining
chip.
4. Lets try to think of ways to make our offer more attractive by sweetening the
deal.
5. We need to put a better offer on the table.
Listening Questions
3) In the interview, we learn that overcoming blockage that is, getting past
problems is not just about reaching the agreement but also about
maximizing what?
Vocabulary
Not by a long shot: Not even close. We dont think there is any money to be
made in this deal for us not by a long shot.
Party: A participant in a negotiation. Identifying the real parties to a negotiation
is a key step in your preparation.
Decision maker: The person in charge of making a final decision. In Chinese
culture, it may not at all be obvious who the real decision maker is when you first
meet.
Dialog
Interviewer: Okay, and are those the main things to planning strategy?
Bryan: Not by a long shot. There are several other things to consider. For
instance, we should constantly be asking ourselves, who are the real parties in
the negotiation who are the decision makers. Sometimes the person sitting
across the table from you is not the person in charge, or isnt who they seem to
be.
Bryan: Certainly, and it leads into a discussion of value. We are looking for
synergy effects, i.e., ways to make 1 + 1 equal more than 2. The questions
are, How can value be created? and, Who is likely to get it?. We need to think
outside the box.
Interviewer: Okay, so far weve only talked about positive things. What are the
negatives that come up in a negotiation?
Bryan: Therere certainly negatives as well. We often call these barriers. Its
important to think of these not just in terms of obstacles that might prevent
agreement, but, much more subtly, as impediments to maximizing joint value.
Bryan: Thats right. And to do that, you have to watch out for the ways that
various parties influence the negotiation process and its outcome. This kind
of power to remove or set up barriers to agreement can be both a
blessing and a curse.
Interviewer: It seems to me that theres one last thing that hasnt come into
the discussion so far, and thats: Morally, what is the right thing to do?
Bryan: If you had asked me that question 15 years ago, I might have laughed.
But these days we think of ethics in broader terms to include the
environment corporate social responsibility shareholder rights and
all these areas have a lot of potential value for companies.
As the dialog opens, the interviewer referring to the first half of the discussion
in the previous episode asks Bryan if that was all there was to negotiation
strategy. Bryan replies, Not by a long shot, which means, not at all. Then he
goes on to mention another key strategic concern:
Bryan: For instance, we should constantly be asking ourselves, who are the
real parties in the negotiation who are the decision makers.
So determining the real parties the decision makers is the first strategy that
Bryan mentions. Lets listen to some more example sentences discussing this
element of strategy:
Its not always obvious at first glance who the decision makers are.
Often, there are more than just two parties to a negotiation deals may be
complex, and we must also consider government or shareholder involvement.
Its important to recognize the real parties to the negotiation and identify the
key decision makers.
Bryan: And another thing is to think creatively about interests. That means,
what are their fundamental needs and priorities? A lot of people make the
mistake of not considering carefully where their opposite number is coming
from, and what goals he has to accomplish.
I dont think I really understand where hes coming from on this issue.
We asked them about their motives for the merger to get a feeling for where
they were coming from.
Its not at all clear to me where she is coming from.
As the interviewer points out in the dialog, thinking about interests means
considering the other parties benefits. How does Bryan react to this observation?
Bryan: Certainly, and it leads into a discussion of value. We are looking for
synergy effects, i.e., ways to make 1 + 1 equal more than 2.
This term synergy has become a very popular and important word in
business language.
Bryan: The question is, How can value be created? and, Who is likely to get it?
We need to think outside the box.
To think outside the box is another popular, useful business idiom. It means to
think outside the normal habits of a group or organization in other words, to
think creatively.
I particularly admire his ability to think outside the box hes very original.
In many tough negotiations, it can really help if there is someone on both
sides who can think outside the box.
Often, finding and creating value requires thinking outside the box.
Bryan gives two examples of thinking outside the box: 1) Carrying a product in a
store not just to sell it but because it contributes to the image of our business;
and 2) Buying a business not to directly add to our profit but to control a part of
the market. As he underlines, there is much more to all of this than a simple
commercial transaction, i.e., more than mere buying and selling.
Next, the discussion turns from positives to negatives things that can cause a
negotiation to falter or fail:
Bryan: Therere certainly negatives as well. We often call these barriers. Its
important to think of these not just in terms of obstacles that might prevent
agreement, but, much more subtly, impediments to maximizing joint value.
Bryan calls these negative barriers. Words he uses with the same or similar
meanings include obstacles and impediments. All of these words collocate with
the verbs set up (to create) and remove (to get rid of), and they use the
preposition to: For example, Bryan says its important to remove obstacles to
maximizing joint value. That means, to get rid of things that prevent all sides
from getting more benefit. Together, all these negatives obstacles,
It was a real challenge to remove the barriers that had been set up, but in
the end we succeeded.
Overcoming blockage is a process of getting rid of obstacles in the road to an
agreement.
A typical impediment to compromise is an overemphasis on price.
The discussion of blockage leads into the next important strategic consideration
power. As Bryan thinks of it, this means the ability to set up or remove
barriers, which depending on what side you are on can be a blessing or a
curse. This last phrase forms a common idiom. It refers to something that can
be bad or good, depending on the situation. (We also say something is both a
blessing and a curse.)
What is the last point that the interviewer raises in the discussion, before the
interview draws to a close? Its ethics, or morality. The interviewer poses the
question, Do we need to think morally, what is the right thing to do? How does
Bryan respond?
Bryan: If you had asked me that question 15 years ago, I might have laughed.
But these days we think of ethics in broader terms to include the
environment corporate social responsibility shareholder rights and
all these areas have a lot of potential value for companies.
Bryans opinion is that ethics have become more and more important to
business. Examples he gives are the environment, corporate social responsibility
(often referred to as CSR) and shareholder rights (which mainly refers to the
right of company stockholders to information, but also to the right to dividends
or profit share and the right to cast votes). As Bryan points out, all these moral
issues are areas of great potential value to companies.
Now, its your turn to practice. First, well review some of the verb collocations
that we just learned: In a moment, youll hear a series of sentences with a verb
blanked out or replaced with a beep. Repeat the whole sentence, supplying the
missing verb in the correct form.
Next well use the same method to review key vocabulary. Youll hear another
series of cues. As before, one word is blanked out with a beep. Repeat each
sentence, supplying the missing word.
In future episodes, well take a closer look at negotiation language and skills.
Language Review
A. Useful Language
Review important vocabulary by filling in the blanks in the following sentences
with words we covered in this episode.
1. Often, the most vital step is to recognize real parties to the negotiation and
1)
identify the ___________ decision makers.
2. We asked them a series of questions about their motives and interests to get
2)
a feeling for where they are really _____________ from.
3)
3. A lot of what we are doing in negotiation is looking for ______________
between our companies.
4. In many tough negotiations, it can really help if there is someone on both
4)
sides who can think ________________ the box.
5)
5. Having a clear bottom line can be both a blessing or a ____________ its
7)
often better to be fairly ___________ in your approach.
8)
6. More and more companies are recognizing the great ________________
value in environmental protection.
9)
7. Corporate social ______________ is an area of great potential value to
10)
companies these days, since it can help companies build brand
___________ and loyalty.
B. Prepositions Review
To review useful expression, supply the missing prepositions in the following
sentences.
1. A typical impediment _____ compromise is an overemphasis ______ price.
3. It was a real challenge _______ remove the barriers that had been set up,
Study Strategy
Think of a negotiation that you had recently or that you have watched or know
about. Analyze it in the terms we have learned in this episode and the last. What
were the parties BATNAs and bottom lines? Who were the real decision makers?
What were their interests? How did power play a role? Were their any ethical
questions? Did the people involved think outside the box to maximize joint
value? Or was there an overemphasis on price? Prepare a short talk presenting
your findings.
Language Review
A. Useful Language
1) Often, the most vital step is to recognize real parties to the negotiation and
identify the 1) key decision makers.
2) We asked them a series of questions about their motives and interests to get
a feeling for where they are really 2) coming from.
3) A lot of what we are doing in negotiation is looking for 3) synergies between
our companies.
4) In many tough negotiations, it can really help if there is someone on both
sides who can think 4) outside the box.
5) Having a clear bottom line can be both a blessing or a 5) curse its often
better to be fairly 7) flexible in your approach.
6) More and more companies are recognizing the great 8) potential value in
environmental protection.
7) Corporate social 9) responsibility is an area of great potential value to
companies these days, since it can help companies build brand 10) image and
loyalty.
B. Prepositions Review
1) A typical impediment to compromise is an overemphasis on price.
2) Overcoming blockage is a process of getting rid of obstacles in the road to an
agreement.
3) It was a real challenge to remove the barriers that had been set up, but in
the end we succeeded.
4) It is important to remove obstacles to reaching an agreement.
In this episode, both Peter and Maxine are owners of local telecommunication
services that provide mobile phone users with ring tones and games. Peters
company, Textacular, has a significant presence in Denmark; meanwhile, Maxines
company, Gamester, is based in northern Germany.
Listening Questions
2) What does Peter say is his and Maxines biggest overlapping concern?
3) How does Peter bring up the subject of a possible merger between his and
Maxines company?
Vocabulary
Only good things, I hope! Small talk. Typical response to the phrase, X has said
lots about you." A: Jenny has said a lot about you. B: Only good things, I
hope!
The trend is towards sth.: To have a tendancy towards sth. The trend in the
market is towards smaller and smaller cars.
Consolidation: The act of small parts merging into one. There are so many
small, regional players in this market that we think some consolidation is
inevitable.
To join forces (with) s/o: To combine resources and strength with s/o. To
remain competitive, we were forced to join forces with another regional
provider.
To cross ones mind: To occur to s/o. The thought has crossed our minds.
Dialog
At this point in his conversations with Maxine, Peter has not actually directly
brought up the fact that he wishes to buy her company. Until now, he has just
been focusing on creating a good atmosphere and establishing common
interests. Peter knows that for a merger to succeed, building a good relationship
is essential. So he is being careful to lay good groundwork, that is, to establish a
strong foundation for his partnership with Maxine.
Lets look in detail at some of the positive language and expressions that Peter
uses at the beginning of the dialog:
First, Peter mentions a mutual acquaintance, Sam. Next, he uses two phrases to
start the conversation off on the right foot, that is, to start it off on a positive
basis: First he flatters Maxine on her business he says, Im very impressed
with your company. Second, he says, Its great to finally have the opportunity
to meet you. Using this kind of language on the first meeting is often an
important element in starting off on the right foot that is, making a good
impression and creating a good atmosphere. Lets study more phrases that we
can use:
What happens next? Peter and Maxine order their food, and the dialog fades out
while they begin eating. For more practice on business meals, we can listen to
BEP 96, which deals specifically with this topic, including ordering,
recommending dishes, and paying the bill.
When the dialog fades back in, Peter is ready to turn the topic of conversation to
business. How does he do that in a positive and productive way? He emphasizes
the interests that he and Maxine share. Listen again.
Peter: So, as I mentioned over the phone, Im hoping we can explore some
mutual interests.
Maxine: Yes, we certainly have overlapping concerns.
trust and building rapport in a relationship. Lets listen to some more examples
of using a you-attitude to explore mutual needs.
After Peter has turned the conversation to business by exploring mutual needs,
how does the dialog continue? Maxine agrees with Peter that they have
overlapping or shared interests.
Having opened the topic of business, Peter and Maxine now emphasize a
common interest that will form the basis of his relationship with Maxine: How to
remain competitive in the face of pan-European providers. Pan means all, a
providers means competing service providers, like Peters and Maxines
companies. So, Peter is talking about competition from larger, Europe-wide
companies that sell ring tones and games.
Thus, Peter and Maxine can say that their major overlapping concern is how to
remain competitive in the face of larger providers. Peter and Maxine use these
phrases to establish common interests. Lets review some more types of useful
expression for this purpose:
How does the dialog continue to develop? Maxine agrees with Peter about the
threat they jointly face from larger competitors, doesnt she?
The positive response that Peter is getting from Maxine is, of course, due to his
focusing specifically on clear areas of common interest.
Next, Peter takes advantage of this positive response to build on the good
atmosphere by emphasizing solidarity. Solidarity is, as Peter puts it, the feeling
that we are in this together. It is the basis of loyalty and trust. Listen again.
Our long-term partnership can only contribute to the success of both our
companies.
This is a great chance to forge an even closer and more productive working
relationship.
By working closely together, we can achieve great things.
As their conversation continues, its now Maxines turn to ask Peter for
clarification about what exactly he is thinking of:
Peter asks Maxine if she has ever considered joining forces. This is the most
direct reference that Peter makes to a merger during the dialog. To join forces is
an idiom that comes from military language. The original meaning is to merge
armies. We can use this expression with the preposition with for example, to
join forces with someone. Here are some more examples with this phrase:
How does Maxine respond to Peters suggestion that they should join forces?
To cross ones mind means to occur to someone. So Maxine is saying that she
had actually already been thinking about possibilities for some sort of merger.
Peter finishes off the dialog by suggesting a next step he says, Well, Id say
we have a lot to talk about. Of course, in a business discussion its not enough
just to build the relationship at some point, we need to take action. Lets
review further expressions for proposing the next step.
First, well review the language of exploring each others needs and establishing
common ground. Imagine you are in discussions with some potential partners.
First youll hear a cue prompting you to ask them about their needs.
Next, listen to their reply. After they have finished, respond by using a phrase
we studied for establishing common ground. For instance you could say, We
have a lot of common ground or Our needs in this area are complementary,
dont you think?
Partner 2 Reply: Were hoping to double profits in the next five years.
Learner 2 Response: :
Practice 2
Next, well review some of the useful vocabulary and collocations that we studied
in this episode. Youll hear a series of sentences with a verb blanked out or
replaced with a beep. Repeat the whole sentence saying the missing word.
After each response, well play the correct answer. Lets begin.
Cue 4: They joined <beep> with each other to defeat their common opponent.
Learner 4:
Thats all for this episode on relationship building. Weve talked about the
importance of a you-attitude, learned useful idioms, and studied language and
expressions for starting off on the right foot, exploring each others needs,
establishing common interests, emphasizing solidarity and suggesting the next
step.
Study Strategy
On a piece of paper draw a small circle. That circle is yourself. Next, draw
several other circles of varying distances from the first to represent the various
people, companies, and organizations with whom you have built relationships.
The distance represents the closeness of the relationship. After you have
finished, consider how all these relationships were formed. Some like those
with your family you did not choose. Others you have worked hard to form.
Give a presentation to a friend or a colleague about the relationships, and use
the opportunity to discuss the practices and customs of relationship building in
your culture.
Answers
Listening Questions
1) No, Peter and Maxine have not Met before. Peter says, Its great to finally
have the opportunity to meet you.
2) When Maxine mentions that she and Peter have some overlapping concerns,
Peter replies, Yes, big one is how to remain competitive in the face of pan-
European providers. Pan means all, so Peter is concerned about how to
compete with larger companies that have all of Europe as their market.
3) Peter is careful about how he approaches the subject of a merger between
his and Maxines company: He indirectly brings up the topic near the end of
the dialog when he asks Maxine, Were wondering whether youve ever
considered joining forces with another regional provider He has not at
this point clearly indicated that he wishes to buy Maxines company,
Gamester.
Language Review
A. Starting Off on the Right Foot
1. It is great finally to have the opportunity to meet you in person.
2. I am grateful for this chance to talk.
3. We have heard a lot of great things about you.
4. Your reputation proceeds you.
This is the first time Tony and Paul have talked on the
phone. As you listen, pay attention to the language they
use to get the negotiation started, and try to answer the
following questions.
Listening Questions
2) How long does Paul say he has available for the phone call?
3) Paul asks Tony how he will be using the bolts. How does Tony respond?
Vocabulary
Anchor bolts: Large screws that are used to support and connect structural steel
columns that are embedded within concrete to give buildings strength. Using
high-quality anchor bolts is essential to making a building earthquake proof.
Harbor project: A harbor is an area used to dock or park boats. In the dialog, a
harbor project is a construction project near or in a harbor.
Personally: Can be used at the beginning of a sentence to mean, speaking for
myself. Personally, I think that the project is a bad idea, but others may have
other opinions.
Stainless (steel): Steel mixed with chromium to make it resistant to rust
(turning red) when exposed to the elements, i.e., exposed to air and water.
Only highest-quality stainless steel is used in surgical instruments.
High-strength: Strong. We need high-strength rebar for this project because of
the large size of the building.
Ksi: Unit of measure for material strength. Short for kilopounds per square
inch. Refers to the amount of pressure or stress a material can withstand
before breaking.
Grade 105: Refers to steel that can withstand 105 ksi.
Structural steel columns: Support structures made of steel that are embedded,
or buried, inside concrete to make buildings strong. Structural steel columns
are used to support large buildings.
To explore an option: To discuss a possibility. Wed love to have the opportunity
to explore options for cooperation with your company.
Resin-coated: Covered with a thin clear layer of protective substance, like glue.
Resin-coated steel is much more resistant to air and water than traditional
steel.
To stick with sth. To continue doing sth., even in the face of resistance. Im
going to stick with the approach Im using, even though most of you dont
agree.
Treated (steel): Refers to steel which has been through a process to change its
properties. Treatments include heating or adding chemical elements. For
example, heat treatments strength steel; meanwhile, chromium-treated steel is
commonly called stainless steel. Wed prefer to use treated steel in this
project because of the very special challenges posed by the harbor
environment.
Rebar: Rebar means reinforcing bar. Steel rebar forms the framework within
concrete columns that anchor bolts are used to connect and support. In wet
environments, rebar rusts easily, so I suggest using stainless for this project.
Exclusivity / exclusive rights: The rights to be the sole agent or seller of a
product within a certain market. They are our exclusive agent in the Philippines;
so if we find a product there that was not sold by them, we wont service it.
To embed sth. in sth.: To bury sth in sth. Structural steel columns are
embedded in concrete to give buildings strength.
Concrete: A mixture of cement (a binding material), substances such as sand or
gravel, and water. When it dries, it hardens. Most modern buildings, bridges,
and many other man-made structures are made from concrete.
Tony: First of all let me thank you for your time, Paul.
Tony: I thought we could start by discussing your needs in more detail, then go
on to details of price, delivery and so on.
Paul: Fine by me. Personally, Ive only got about a half hour available.
Paul: Okay.
Tony: So if I understand correctly, you are looking for standard 7/8th inch high-
strength anchor bolts, 105 ksi.
Tony: Could you tell us more about how you will be using them? In structural
steel columns, I assume?
Tony: Theres another option you might want to explore. Have you
considered resin-coated?
Paul: We thought about that, but were using treated rebar, so were just
going to stick with the same material for the bolts.
Tony: Okay Well, youve seen our price list How many are you considering
ordering?
Paul: Yes, well, what kind of discount could you give us on a large order?
Debrief
Tony and Paul have started off the negotiation successfully and are now ready to
proceed to the bargaining stage. Lets examine the language they used to begin
their discussion.
To start off, Tony, the supplier, demonstrates goodwill to Paul by thanking him
for his time:
Tony: First of all let me thank you for your time, Paul.
Paul: Not at all. Thanks for calling.
What are some other phrases we can use to establish goodwill at the beginning
of a negotiation?
Next, Tony starts off the discussion by introducing his reason for calling. Lets
take a closer look at how he does this.
What does Paul mean by stainless? This refers to stainless steel, which is steel
mixed or treated with a chemical element chromium to keep it from rusting,
or turning red, when it is exposed to air and water. Because Pauls construction
project is in a harbor, the buildings are surrounded by water and probably salt.
So its important that the anchor bolts resist rust to last a long time.
I understand is a way of starting off. Lets listen to some more language that
is useful for this purpose.
May I begin by saying that we have looked at your quotation very closely.
First of all, let me give you some background on our proposal.
We understand that you are looking for a solution to this problem.
After Tony has started off the discussion, how does he continue?
Tony: I thought we could start by discussing your needs in more detail, then go
on to details of price, delivery and so on.
Here Tony suggests an agenda for the meeting. To be polite, he uses the past
tense, I thought we could start In other words, he was thinking this was a
good idea for the agenda, but if Paul has another idea, thats okay.
We have three main issues wed like to discuss with you today.
I was thinking we could start by discussing the details of the order, then
moving on to price.
Does Paul agree to Tonys agenda? Yes, but he has a suggestion of his own.
Paul: Fine by me. Personally, Ive only got about a half hour available.
Tony: Should be plenty.
Paul: Okay.
Mentioning time limits is part of setting ground rules; that is, creating guidelines
for the talks. What are some other ground rules that we may need to set?
What happens next? Tony takes the important step of clarifying Pauls needs:
Tony: So if I understand correctly, you are looking for standard 7/8th inch high-
strength anchor bolts, 105 ksi.
Paul: Yes, grade 105 on this project.
From their previous emails, Tony knows Pauls requirements, but he clarifies
them here to confirm. To do this, he uses the expression, So, if I understand
correctly
What exactly does Paul need? Seven-eighths of an inch refers to the diameter,
or width, of the bolt. Ksi is a unit of measurement. It stands for kilopounds
(1000 pounds) per square inch. This is used to measure the strength of
materials for example, how much weight they can bear before breaking. Bolts
that can take 105 ksi are referred to as grade 105.
In the last example phrase, exclusivity refers to the right to be the only agent or
seller of an item in a market. This is sometimes called having exclusive rights.
After clarifying the basic order, Tony now questions Paul in more detail:
Tony: Could you tell us more about how you will be using them? In structural
steel columns, I assume?
Paul: Thats right.
Tonys phrase Could you tell us more is one useful way of probing. What
are some other expressions?
How do Tony and Paul continue? Tony uses the information he has collected to
suggest another possibility to Paul:
Tony: Theres another option you might want to explore. Have you
considered resin-coated?
Tony wants to know whether or not Paul has considered using resin-coated bolts
instead of stainless. Resin is a clear coating or layer that protects the steel. Tony
says, Theres another option you might want to explore.
Exploring different possibilities for creating value is another key negotiation skill.
Here are some more phrases that can help us do this:
Does Paul agree to Tonys proposal to use resin-coated bolts? No, he says they
are already using treated, or stainless, rebar, so they want to stick with, or
continue using, the same material for the bolts (rebar means reinforcing bar;
rebar forms the framework within structural concrete columns and anchor bolts
connect and support the framework.)
Tony: Okay Well, youve seen our price list How many are you considering
ordering?
Paul: Yes, well, what kind of discount could you give us on a large order?
Tony: That depends how many are we talking about?
Here Tony and Paul begin the bargaining process, which will be handled in more
detail in another episode. But lets look at how they begin: Notice how both Paul
and Tony are careful not to make the first move. Neither one wants to offer too
much or too little without knowing more about the other sides position, so they
both attempt to put off or postpone talking in detail.
After, Tony asks Paul how many bolts he wants to order, Paul asks, What kind
of discount could you give us on a large order? This is a standard way to probe
about a possible price reduction.
Thats all for the dialog. Weve reviewed the language Paul and Tony used to
start off the negotiation. Now, its your turn to practice.
Practice 1
First, lets go over probing questions. Imagine you are negotiating with a
vendor. You will hear a series of cues telling you the areas to probe. After each
beep, use the cue to make a question.
Other useful expressions include, Could you go into more detail on, and
Wouldnt it be possible to.
After each exercise, we will play an example answer, but bear in mind there are
many possible correct responses. Are you ready? Lets give it a try.
Answer 1: Could you tell us more about any special offers you have?
Practice 2
Now youll hear a series of sentences with a verb blanked out or replaced with a
beep. Repeat the whole sentence but say the missing word.
Cue 1: First of all let me give you some <beep> on our proposal.
Learner 1:
Cue 4: We have three main issues wed like <beep> with you today.
Learner 4:
Answer 4: We have three main issues wed like discuss with you today.
Thats all for this episode on getting a negotiation started, which is part of a
longer series on negotiation skills. In this show, weve studied creating goodwill,
suggesting an agenda, setting ground rules, clarifying, probing, exploring
possibilities, and being non-committal.
Language Review
B. Exploring Possibilities
Put the jumbled sentences in order to practice useful phrases for exploring
possibilities.
Study Strategy
What kind of vendors are important to keeping your business or office running?
Do you or any of your colleagues have to negotiate with them. If you conduct
these kinds of negotiation yourself, think of your last negotiation. How did it
begin? If you arent involved in these kinds of negotiation, interview a friend or
colleague who is. In either case, use the real situation to write a dialog. Employ
the language we have studied in this episode. Role play with a friend.
Thirty minutes. Paul says, Personally, Ive only got about a half hour available.
The bolts will be used in structural steel columns. As discussed earlier, they are
for a harbor project.
Language Review
B. Exploring Possibilities
1. I would like to explore a number of options with you.
2. There are a number of ways to look at this.
3. I think there are a number of possibilities we would suggest looking at.
4. I am sure we can find some common ground.
Peter is the owner of mobile phone ringtone and game provider, Textacular. He
is attempting to roll up, or buy, other small companies like his in an effort to
increase the value of his company. Eventually, he wants to sell his business to a
larger, regional service provider for a profit. In the listening, he is meeting with
Maxine, owner of Gamester, to discuss a possible merger.
As you listen, pay attention to how they clarify and evaluate each others
positions and try to answer the following listening questions.
Listening Questions
3) What does Peter mean when he says he has done months of due diligence?
Dialog
Maxine: So in short, weve thought about it a lot, and we really cant budge
from our position.
Peter: So if Im getting you right, you wont be willing to part with Gamester for
less than 15 million, right?
Maxine: Yes, thats an absolute minimum. Let me go over my reasons again.
Peter: Go ahead.
Maxine: For one, this market is going nowhere but up.
Peter: Yes, I take your point.
Maxine: For another, weve got tremendous value here youve seen the
figures: good people, good products, and a solid business plan.
Peter: I agree. Ive done months of due diligence, and Im convinced of the
value of a merger.
Maxine: I know you are, but we need a fair price for our business.
Peter: On my side, though, we must take into account redundancies in our
business operations and factor in the volatility in the market.
Vocabulary
To evaluate sth: To comment on the value of sth., i.e., whether it is good or
bad. Its important to evaluate the position carefully before drawing any
conclusions.
To (not be able to) budge from a position: To not be able to move even a little
bit from a point. After he said hed reached his bottom line, he didnt budge.
To part with sth. (for a price): To sell something (often unwillingly). He will only
part with his favorite car for a very high price.
To be an absolute minimum: To be the very lowest (price or number, etc.).
Thats an absolute minimum I cant go lower than that.
To be going nowhere but up: To have potential. To be growing or expanding.
This business is going nowhere but up.
To have tremendous value (for/to s/o): To be extremely valuable. My
experience in the army has tremendous value for me.
Business plan: A detailed strategy for conducting business. We drew up a
business plan before we went to investors to get money.
To do due diligence (on sth.): To research carefully (especially a large purchase)
Its essential to do thourough due diligence before any merger.
To be very firm on/about sth.: To be very sure about sth.; to be committed to a
position. They are very firm on price, so were going to have to look for
concessions elsewhere.
To insist on sth.: To continue to ask for or believe in sth., even when other people
oppose it. I must insist on early delivery, even if it will increase your production costs.
To tie up loose ends: Refers to taking care of minor details. Everything looks
good there are just a few minor loose ends to tie up.
To leave a lot to be desired: Negative evaluation; means to fall short of
expectations. I thought her presentation left a lot to be desired.
Debrief
Maxine has stated her position and justified her point of view. Meanwhile, Peter
has been careful to confirm that he correctly understands her stance. Both
Maxine and Peter evaluate the other sides demands. Although they have a
disagreement, Maxine and Peter are communicating clearly. Lets take a close
look at the language they use to create a frank discussion.
The dialog begins with Maxine making a very clear statement of her position:
Maxine: So in short, weve thought about it a lot, and we really cant budge
from our position.
Maxine opens by saying, Weve thought about it a lot This both shows Peter
that she has seriously considered his offer and indicates that she is very firm.
Cant budge means cant move, even a little bit. So, Maxine means she is
holding on to her position.
At this stage in the negotiation, making clear statements of our position can help
save time and avoid misunderstanding.
How does the conversation between Peter and Maxine continue? At this point,
Peter makes sure that he has completely understood Maxines point of view.
Peter: So if Im getting you right, you wont be willing to part with Gamester for
less than 15 million, right?
So if Im getting you right is a way of clarifying the other partys position. Peter
wants to confirm that Maxine wont be able to part with, or sell, her company for
less than 15 million.
If I understand the position correctly, you are looking for better credit terms,
am I correct?
As we see it, this is the position at the moment:
How do you see our objectives?
Can I just summarize our positions as I see them?
So, Peter has confirmed that Maxine will not sell for less than 15 million. How
does she reply?
Maxine says that 15 million is an absolute minimum she is signaling that this
is her bottom line, or lowest possible selling price. Then she offers to go over or
review her reasons. The first reason is that themarket is going nowhere but
up. In other words, the market is continuing to expand, and the future looks
bright.
Next, Maxine continues to discuss her reasons for staying firm on 15 million.
Maxine: For another, weve got tremendous value here youve seen the
figures: good people, good products, and a solid business plan.
Peter: I agree. Ive done months of due diligence, and Im convinced of the
value.
Maxine: I know you are, but we need a fair price for our business.
In this passage, Maxine is evaluating judging the value of her business. She
says shes got tremendous value here as well as good people, good products,
and a solid business plan. Peter agrees he has done months of due diligence
Can you think of other language that can be used to evaluate a position? First,
lets go over some examples of positive evaluations:
Thats all for positive evaluations. Now what can we say if we wish to negatively
evaluate something?
As the dialog finishes, Maxine acknowledges that Peter is convinced of the value
of a merger, but she says she needs a fair price for her business. We hear
from the tone of Peters reply that he is not yet ready to increase his offer. In
the next episode, Declining an Offer, well be returning to this dialog to see how
Maxine and Peters conversation develops.
Now, lets practice the skills and language that we have covered today.
First, lets practice stating and clarifying positions. Imagine you are in talks with
the owner of a company that youd like to buy. First, you will hear a cue
outlining your position and telling you whether you should state it strongly or
carefully. After the beep, use the cue to make a sentence with the language we
have studied in this episode.
Next, the other side will reply, his or her statement is not completely clear. After
the beep, use one of the phrases we have learned to clarify.
Other language you can use for clarifying includes So if Im getting you
right. So If I understand correctly or So as I see it, this is the position at
the moment.
Reply 1: Well, at this point, were just not prepared to change our position.
Learner 1 clarification:
Cue 2: Complete the deal before the end of the year, strong
Learner 2 statement:
Reply 2: Though there are still a couple of loose ends to tie up, thats a definite
possibility.
Learner 2 clarification:
Howd that go? Lets now listen to some example answers. Keep in mind,
though, there are many possible correct responses.
Cue 2: Complete the deal before the end of the year, strong
Learner 2 statement: From our side, we must insist on finishing the deal
before the end of the year.
Reply 2: Though there are still a couple of loose ends to tie up, thats a definite
possibility.
Learner 2 clarification: So, if Im getting you right, you feel that its possible
to complete the deal before the end of the year.
Okay, now lets practice useful collocations. Youll hear a series of sentences with
a word blanked out or replaced with a beep. Repeat the whole sentence, but say
the missing word.
Cue 1: Frankly, I must say that we have to be very <beep> on this point.
Learner 1:
Cue 6: Honestly, this offer leaves a lot to be <beep>, in our point of view.
Learner 6:
Answer 1: Frankly, I must say that we have to be very firm on this point.
Answer 2: At first sight, this appears to be an untenable position for us.
Answer 3: Let me explain why we have reached this conclusion.
Answer 4: I also have to take into account many other factors.
Answer 5: There are still a couple of loose ends to tie up.
Answer 6: Honestly, this offer leaves a lot to be desired, in our point of view.
Thats all for this episode. Weve studied stating our position, justifying our stance
with reasons, clarifying the other sides point of view, and evaluating the offer.
Study Strategy
Play the clarifying game with a friend, colleague, or learning partner. Take
turns reading aloud passages from a report or a newspaper. When you come to
numbers or important details, whisper so that your partner cannot hear you
clearly. He or she should interrupt and clarify.
A. Useful Language
Review useful language by filling in the blanks with words from the box.
Clarifying positions
1. If I understand the position ___________, you are looking for better credit
terms, am I correct?
2. As we ___________ it, this is the position at the moment:
3. How do you see our ___________?
4. Can I just _____________ our positions as I see them?
Negative
8. Honestly, this offer leaves a lot to be _____________, in our point of view.
9. Weve looked at the figures closely, and I cant say that we currently have a
very high ____________ of this deal.
10.At this point, I think its really ___________ to see where the value is for our
side.
B. Giving Reasons
Put the jumbled sentences in order to practice useful phrases for giving reasons.
Write the correct responses in the gaps below the jumbled words.
4. I this like to run through seven briefly points position explain that our just on
would
Answers
Listening Questions
1) The basic source of disagreement between Maxine and Peter is price Maxine
will not sell business for less than 15 million; Peter cant do better than,
that is, cant offer more than 11.5 million.
2) Maxine says that the market is going nowhere but up that is, continuing to
expand and she says that shes got tremendous value here good people,
good products, and a solid business plan.
3) Due diligence refers to doing careful research before a big purchase or other
major life decision.
Language Review
A. Useful Language
Clarifying positions
1. If I understand the position correctly, you are looking for better credit
terms, am I correct?
2. As we see it, this is the position at the moment:
3. How do you see our objectives?
4. Can I just summarize our positions as I see them?
Negative
8. Honestly, this offer leaves a lot to be desired, in our point of view.
9. Weve looked at the figures closely, and I cant say that we currently have a
very high appraisal of this deal.
10.At this point, I think its really tough to see where the value is for our side.
B. Giving Reasons
1. Let me explain why we have reached this conclusion.
2. I also have to take into account many other factors.
3. There are several aspects to this situation.
4. I would just like to briefly run through seven points that explain our position
on this.
Peter is the owner of mobile phone ringtone and game provider, Textacular. He
is in discussions with Maxine about buying her company, Gamester. Eventually,
Peter wants to sell his business to a larger, regional service provider for a profit,
so he is attempting to roll up or buy other small companies to increase the value
of his business. But Maxine wants 15 million for her business, and Peter isnt
prepared to pay that much.
As you listen, pay attention to how Peter makes a final offer, how Maxine
declines it, and how they both work to maintain goodwill.
Listening Questions
2) What does Peter say to justify not being able to pay more?
3) How does Maxine leave open the possibility for future cooperation?
Vocabulary
To take into account: To consider. We need to take into account volatility in the
market.
Redundancies in sth.: (Often useless) repetition or overlap. (Can also refer to lay
offs To make s/o redundant means to fire him or her.) A merger is possible,
but there are a lot of redundancies in our business model, so its going to be
necessary to make cuts.
Synergies (in sth.): Ways in which the whole is greater than the sum of the
parts (1 + 1 is greater than 2). Experienced negotiators search for synergies in
order to make a deal that creates value for all sides.
To outweigh sth.: To be more important than sth. At this point in our growth,
the need for steady development outweighs the need to take risks.
To run the numbers (on sth.): To make the calculations. We ran the numbers
on the merger, and we think their stock price is way overvalued.
To be too rich for someones blood: To be too expensive for someone. Im sorry
I cant pay that much. Its too rich for my blood.
Debrief
Although Peter and Maxine disagree, they end the discussion in a cordial, or
friendly, manner: The possibility remains open for future cooperation. Lets look
closely at the language they use.
The dialog starts off with Peter giving his reasons for not being able to pay
Maxines price of 15 million.
Maxine has a different evaluation from Peter, however: She believes synergies in
their operations will outweigh or be more important than all the factors Peter
has mentioned. To review, synergy refers to a situation in which the whole is
greater than the sum of the parts, in other words, a situation in which 1 + 1 is
greater than 2.
How does Peter reply to Maxine? He makes his best offer. Lets listen again.
Peter: Yes, but weve run the numbers, and, depending on how the deal is
structured, I cant do better than 11.5 million.
Peter has run the numbers, or analyzed the financial information. Depending
on how the deal is structured, which refers to credit terms, payment period,
and so on he cant do better than 11.5 million. That is his final offer.
Maxine has also reached a point where she cannot make any more concessions.
She makes this clear by expressing her dissatisfaction with Peters offer.
Maxine: Well, theres no two ways about it. That doesnt give us much more
to talk about.
Theres no two ways about it means theres no other way to look at it no way
forward.
Sometimes its important to express that we are not satisfied with a proposal. In
some situations, being clear about your feelings may actually help overcome
blockage.
Unless your side takes a different approach, at this point I just dont see any
clear way forward.
Face it. Were wasting our time.
Frankly, were not satisfied with the offer on the table.
We seem to have reached an impasse.
That figure is just too rich for our blood.
Next in the dialog, Peter replies by expressing regret that he and Maxine were
unable to reach agreement.
Peter: Well, Im really sorry to hear you put it that way. I was really hoping we
would resolve our differences.
Peters expression of regret helps defuse or relax the situation. Then, he ends on
a positive note he says, I was really hoping we would resolve their
differences.
Can you think of other language for expressing regret? Listen to some examples.
Maxine ends the conversation politely to leave the door open for further
discussions.
Maxine: Yes, but, anyhow, I think we should explore other possibilities for
working together.
Peter: Absolutely. I look forward to it.
Of course, even when were feeling frustrated, its usually wise to keep the
possibility open for future negotiation.
Lets examine some similar phrases that can create goodwill when weve reached
an impasse.
Obviously, though, there are other areas where well be able to work
together.
I would still like to emphasize how much we appreciate our partnership.
Despite our differences of opinions, we are committed to a long-term
partnership.
Your support means a lot to us.
Practice 1
First, imagine you are negotiating with a client. Your talks have encountered an
obstacle. First, based on the cue, make a final offer. Then the customer will
express dissatisfaction. Finally, you should reply by expressing regret.
Exercise 1
Example cue 1: Cannot bend further. <beep>
Example learner 1 final offer:
Example client 1 dissatisfaction: Frankly, were not satisfied with the offer
on the table. <beep>
Example learner 1 regret:
Exercise 2
Example cue 2: Already as far as we can move. <beep>
Example learner 1 final offer:
Answer 2
Example cue 2: Already as far as we can move. <beep>
Example learner 2 final offer: Weve already made many concessions.
Thats already as far as we can move on this point.
Example client 2 dissatisfaction: Unless your side takes a different
approach, at this point I just dont see any clear way forward. <beep>
Example learner 2 regret: Its too bad that we see things differently on this
issue.
Practice 2
Okay, now lets practice useful collocations. Youll hear a series of sentences with
a word blanked out or replaced with a beep. Repeat the whole sentence, but say
the missing word.
Well play an example answer after each exercise. Are you ready? Lets begin.
Cue 3: Theres no two <beep> about it were just going to have to accept the
deal.
Learner 3:
Cue 4: At this point, our need for cash <beep> the risk of taking out a loan.
Learner 4:
Cue 6: High <beep> in the market makes it risky to put a value on a company.
Learner 6:
Answer 3: Theres no two ways about it were just going to have to accept
the deal.
Answer 4: At this point, our need for cash outweighs the risk of taking out a loan.
Answer 6: High volatility in the market can makes it risky to put a value on a
company.
Thats all for this episode. Weve looked at making and declining a final offer;
expressing dissatisfaction and regret; and leaving the possibility open for further
cooperation by maintaining goodwill. Weve focused on building good
relationships even when things dont go according to plan.
After you have finished, identify the function of each phrase, i.e., stating your
position, clarifying positions, giving reasons, evaluating positions, making a final
offer, expressing dissatisfaction, or maintaining goodwill. (There are two
examples of maintaining goodwill all others are only represented by one dialog
phrase.)
Brenda: Frankly I must say that we have to be very firm on this 1. (Stating your position)
point.
Mitch: Thats just too rich for our blood.
Answers
Listening Questions
1. Maxine is not willing to come down on her price because the market is going
nowhere but up, that is, it is expanding, and because she believes she has got
tremendous value, that is, good people, good products, and a solid business
plan.
3. Near the end of the conversation, Maxine says, Yes, but, anyhow, I think we
should explore other possibilities for working together. Though they did not
reach an agreement about a merger today, she is keeping the door open for
further discussions about other possibilities and topics.
Language Review
A. Negotiation Dialog
Brenda: Frankly I must say that we have to be very firm on 1. (Stating your position)
this point.
Mitch: Thats just too rich for our blood. 6. (Expressing
dissatisfaction)
Mitch: Well, if the number is 11 million, I think its really 4. (Evaluating positions)
tough to see where the value is for our side.
Brenda: Im sorry to hear that you put it that way. 7. (Expressing regret)
Brenda: Thats our final offer. Thats already as far as we low 5. (Making a final offer)
as we can go at this point.
Mitch: Obviously, though, there are other areas where well 8. (Maintaining goodwill)
be able to work together.
Brenda: Yes, and let me be clear about my reason as Ive 3. (Giving reasons)
said before, I dont think you are putting a proper price on
our assets.
Brenda: Yes, I agree. I look forward to further discussions. 9. (Maintaining goodwill)
Mitch: Okay, so as I see it, this is the position at the 2. (Clarifying positions)
moment: You cant accept a penny less than 11 million, but
were not will to pay more than 10.
Study Strategy
As you listen, focus on the language that they use to swap concessions and
reach a deal. Also, try to answer the following questions.
Listening Questions
1. What does Paul mean when he says hell probably be throwing more business
Tonys way?
2. Tony suggests a way of helping Paul get a higher discount. What is it?
3. When Tony says to Paul, You drive a hard bargain! what does he mean?
Vocabulary
To bargain (for sth.): To try to get better terms (for sth.) by trading
concessions. We bargained with them all day for a better price.
Swapping / trading concessions: Offering something in return for something
else.
Somewhere in the ball park of: Approximately. We would like to hire
somewhere in the ballpark of 50 new employees this year.
To throwing some more business s/os way: To give someone more business.
Give us a good price, and well be happy to throw more business your way.
List price: The price quoted in the catalog (before discount). The list price is
$750, but we should be able to get you a discount on that.
To toss sth in (to the offer): To include sth in the offer. (Also to throw sth. in.)
Well toss in free delivery with an order of over 100,000 pieces.
Fierce competition: Intense competition. Fierce competition is driving down
prices.
Dialog
Paul: Yes, well, what kind of discount could you give us on a large order?
Paul: For this particular bolt on this project, something in the ballpark of
8,500.
Tony: Okay.
Paul: And we have another similar project coming up, so if the price is right and
the bolts are good, well probably be throwing some more business your
way.
Tony: I understand. If you order over 10,000, I can give you an 8% discount off
the list price.
Paul: I see. And what kind of discount can we get on eighty-five hundred?
Tony: Probably only around 3%, but we can toss in another 2% discount if you
pay within one week of delivery.
Paul: Actually, I was hoping for a little more help from you We are evaluating
other suppliers.
Tony: Yes, competition is fierce, and our margins are already very tight.
Why dont you consider combining your purchases for the two projects? Then
we can discuss a bigger discount.
Paul: Were not sure of the specifications yet. But what if we sign a letter of
intent to use you as the supplier for that project too? Could you consider giving
us an 8% discount then?
Tony: Yes that might be possible. Id have to check with the head office.
Paul: And with the 2% discount for the prompt payment, were talking about
10% off your list price for 8,500.
After having traded concessions, Tony and Paul are nearing agreement. Lets
study the language they use.
To begin with, Paul asks Tony about discounts for large orders. Paul says he
wants something in the ball park of 8,500. This is vague, or indefinite language.
It means approximately 8,500: Paul is being vague to give himself room to
adjust the number upwards or downwards later.
Next, Paul employs another negotiating strategy. What is it? Listen again.
Paul: And we have another similar project coming up, so if the price is right and
the bolts are good, well probably be throwing some more business your
way.
To throw more business someones way means to give someone more business.
Paul is saying he will use Tonys company for future projects, so it will be worth
it to Tony to give him a low price now.
Tony: I understand. If you order over 10,000, I can give you an 8% discount off
the list price.
Paul: I see. And what kind of discount can we get on 8,500?
Tony: Probably only around 3%, but we can toss in another 2% discount if you
pay within one week of delivery.
List price is the catalog or standard price. Toss in means to add or include.
This passage represents the heart of the bargaining process: We see Tony using
conditional phrases or if-sentences to swap concessions. If you give me
this, I can give you that. If Paul orders more than 10,000, Tony can give him
an 8% discount. If Paul pays within one week of delivery, he can toss in or
include an extra 2% discount.
If I agreed to stagger the payments, would you find that more acceptable?
Would it help if we offered to install the equipment for free?
Give us a better discount, and well make a larger order.
We can toss in free delivery if you are willing to accept a later shipment.
How does the dialog continue? As the buyer, Paul is naturally in a stronger
position. He uses this leverage, or strength, to put pressure on Tony, that is, he
tries to force Tony to improve the offer.
Paul: Actually, I was hoping for a little more help from you
First, Paul signals for movement, that is, he indicates he wants a better deal: He
says he was hoping for a little more help, by which he means, of course, a
bigger discount. What other language can we use to signal for movement?
What are some other ways to turn the pressure on? First, lets consider a more
positive approach.
Back in the dialog, how does Tony respond to Pauls attempt to use pressure on
him? He stays very calm, doesnt he?
Tony: Yes, competition is fierce, and our margins are already very tight.
Tony agrees that there are a lot of other suppliers as he puts it, competition
is fierce, that is, intense. But this also means that his margins are already very
tight, or small. By margins, he is referring to profit margins, the amount of
profit he makes on a deal. In other words, his competition has squeezed or
tightened his margins: He cant make any money if he offers a higher discount.
Tony: Why dont you consider combining your purchases for the two
projects? Then we can discuss a bigger discount.
Have you considered ordering earlier? Then you could save on shipping.
What if we get a third-party to check the quality? That way we can avoid any
further problems.
Is Paul prepared to combine his orders for the current and future projects, as
Tony suggests? Not right away, because he isnt yet sure about the
specifications, or exact details, of the future project. But he does have a idea
he proposes signing a letter of intent, which is a preliminary agreement that
states the terms for a future final contract. So Pauls proposal is basically to
promise or pledge that he will use Tony for the later shipment as well; in this
way, his total pledged order will go over 10,000 bolts, which will enable him to
receive the 8% discount.
Tony: Yes that might be possible. Id have to check with the head office.
Tony reacts with a cautious, or careful, yes He says, That might be possible.
Now lets study some more phrases we can use when we totally agree to a
suggestion, in other words, when wed like to say a strong yes.
Of course, were not always able to agree to an offer. What if we have to say no?
There are both strong and soft ways to say no. Lets first study a strong no.
These are very direct ways of saying no. How can we moderate or tone down the
language to make a softer no? Listen.
In both the cautious yes and soft no reactions, note that we use past modals
would, could, might to tone down or soften the tone.
What happens next in the dialog? Having received a cautious agreement from
Tony, Paul summarizes the deal:
Paul: And with the 2% discount for prompt payment, were talking about 10%
off your list price for 8,500.
Tony: You drive a hard bargain!
How does the discussion finish? First, Paul again emphasizes possibilities for
future cooperation his company is expanding rapidly, so hes sure hell be
giving Tony more business in the future. Then Tony buys a little time that is,
he delays making a final agreement.
By buying time, Tony is controlling the pace or speed of talks. Managing the
timing is often very important to achieving a good outcome. Before we finish
today, lets review more expressions that we can use to buy time.
Now, its your turn to practice. First, lets practice reacting to offers. In the cues,
youll hear a series of different reactions. After the beep, repeat the reaction, but
change the tone. That is, if you hear a soft yes, change it to a strong yes. And if
you hear a strong no, turn it into a soft no, and so on.
Now, listen to some example answers. Of course there are many possible correct
responses.
Okay, now lets practice useful collocations. Youll hear a series of sentences with
a word blanked out or replaced with a beep. Repeat the whole sentence, but say
the missing word.
Thats all for this episode on bargaining. Weve studied emphasizing possibilities
for cooperation, trading concession and signaling for movement. In addition,
weve looked at different approaches to turning on the pressure, suggesting
alternatives and their benefits, reacting to a proposal, and buying time.
1. I agreed stagger to the if acceptable payments you that more would find
4. shipment we can delivery in are if you free accept willing to a later toss
Answers
Listening Questions
1. Paul means that he will probably be able to give Tony more business in the
future. He is using this as a negotiating tactic to get a better discount.
2. Tony suggests Paul combine his current order with an order for a future
project. This will increase the overall quantity of Tonys order, and thus will
allow Tony to increase Tonys quantity discount.
3. When Tony says to Tony, You drive a hard bargain! he means that Paul is a
tough negotiator for example, Paul has not only asked for a large quantity
discount, but also for a prompt payment discount. (Tony also perhaps intends
to signal to Paul that he is getting a good deal.)
Language Review
A. Trading Concessions
1. If I agreed to stagger the payments, would you find that more acceptable?
2. Would it help if we offered to install the equipment for free?
3. Give us a better discount, and we will make a larger order.
4. We can toss in free delivery if you are willing to accept a later shipment.
Online Activities
Recall that Peter, owner of Textacular, has been trying to buy Maxines
company, Gamester, as part of his strategy to roll up other small businesses. His
ultimate goal is to increase the value of his own operation so he can sell it to a
larger company for a handsome profit. In previous episodes, Peter had tried to
acquire Maxines company, but talks reached an impasse when Maxine wouldnt
climb down from or reduce her price of 15 million.
In todays listening, Peter calls Maxine back to restart talks. As you listen, focus
on the language they use to remove obstacles to agreement.
Listening Questions
3. What does Peter mean when he says, Its not a question of growth for us,
its a question of survival.
4. What is Peters key insight that enables Maxine and him to overcome their
blockage?
Vocabulary
On the telephone
Maxine: Hello, Maxine speaking.
Peter: Hi Maxine, its Peter.
Maxine: Peter How are you doing?
Peter: Fine, thanks. Look, Ive been thinking about our companies, and if youre
still open to the idea I was wondering if we could get together to talk briefly
about some other possibilities.
Maxine: Uh sure. How about next Wednesday?
Peter: Thatd be fine. What time would be convenient for you?
In person
Peter: So, Ive been thinking a lot, and it seems to me that price is really the
only stumbling block to a deal.
Maxine: How do you mean?
Peter: The potential for a merger looks great weve got a great fit here. And
looking at the market, the overall strategy it demands is consolidation. In
my opinion, its not a question of growth for us, its a question of survival.
Maxine: The big players are certainly moving in fast. But weve been through
this before. What are you driving at?
Peter: So just for arguments sake, why dont we flip it around for a
second?
Maxine: All right. Im listening.
Peter: If your company is worth 15 million I was wondering what do you
think your board might be willing to pay for ours?
Maxine: Hmmm Yours is a little smaller than ours. Probably something like
12.5.
Peter: I think we might be on to something here.
Maxine: You could be right. Weve certainly done all the footwork, and Im
convinced of the value of a merger.
Peter: Why dont you run it by your partners?
Maxine: Ill do that, and get back to you next week.
Debrief
In the first section of the dialog, Peter calls Maxine to start talks back up.
After making a little small talk, Peter suggests restarting talks. At this stage, he
is quite vague or indefinite about what he has in mind he says he just wants to
talk about some other possibilities. This vagueness keeps a casual tone in the
conversation that may also help to arouse Maxines curiosity. At the same time,
Peter uses a lot of very indirect request forms, which has the effect of making
his language very polite: He says, If youre still open to the idea that is, if
you are still willing I was wondering if we could get together briefly. When
restarting talks after an earlier failure, using such causal but polite language is a
good strategy for getting a positive response.
Lets review some more useful expressions when can use for starting the
discussion back up.
Ive been thinking, and Ive come up with a different angle on everything.
I think I see things in a new light, and Id love to talk it over.
You are going to be very interested in the new developments, I think.
I think youll be excited about this new approach.
Ive got a new idea Id like to run by you.
Maxine agrees to talk on Wednesday. As the dialog fades back in, they are
meeting in person. What is the first thing that Peter brings up?
Peter: So, Ive been thinking a lot, and it seems to me that the price is really
the only stumbling block to a deal.
First, Peter identifies the main stumbling block or obstacle to agreement. Before
we can remove a barrier, we must mutually recognize it.
After Peter has identified the price as the main stumbling block, Maxine asks for
further clarification. How does Peter respond?
Here, Peter lays out his argument for a merger. He has several points: First,
theres a great fit or match between his and Maxines companies. Second, the
market is trending towards consolidation, that is, smaller companies are merging
or being bought up to form larger companies. Third, this market demands or
requires smaller businesses to follow the trend in order to survive. As he puts it,
Its not a question of growth for us; its a question of survival. In other words,
the issue is not merely how to grow quickly, but how to keep the businesses
alive.
Maxine: The big players are certainly moving in fast. But weve been through
this before. What are you driving at?
Maxine agrees with Peter she sums up his statement by saying, The big
players or larger companies are moving in fast, that is, they are
developing rapidly, and the competition is getting stronger and stronger. But, as
Maxine puts it, she and Peter have been through all this before, in other
words, they have already talked about these issues before. She wants to know
what he is driving at, in other words, what is the point hes trying to make?
What are you driving at? is a way of drawing someone out, that is, getting
someone to be more specific and more direct. Peter has been telling Maxine
about his new idea one step at a time to warm her up to the idea, but Maxine
wants him to get straight to the point.
To beat around the bush means to avoid talking about the main issue. Upshot
refers to the main details or main point.
After, Maxine asks Peter to be more specific, he comes to his main new proposal
the reason he has asked her to meet with him today.
Peter: So just for arguments sake, why dont we flip it around for a second?
Maxine: All right. Im listening.
Peter: If your company is worth 15 million I was wondering what do you
think your board might be willing to pay for ours?
Peter is thinking outside the box to explore alternatives. He says, why dont we
flip it around for a second? This means, why dont we look at it from a
completely different point of view. What is Peters suggestion? He quite literally
wants to flip around the role of buyer and seller if Maxine wants 15 million for
her company, how much would she be willing to pay for his?
Exploring alternatives is really the heart of handling blockage. This often means
trying to see things in a new light or from a different point of view. Lets go over
some more phrases we can use.
How much does Maxine say she would be willing to pay for Peters company?
Maxine: Hmmm Yours is a little smaller than ours, probably something like
12.5.
Peter: I think we might be on to something here.
Here Maxine makes a first tentative or careful offer, and Peter responds
positively: To be on to something means to be close to finding a solution or
reaching a goal.
After we have successfully overcome blockage, the next step is to give a positive
reaction to the new proposal. Lets look at some other language we can use to
move towards agreement.
Youre right.
You have a point.
I think I can accept that.
I think weve made some progress.
I think I can a way to solving our differences.
What is Maxines point of view on Peters new proposal? She is cautious, but
optimistic
Maxine: You could be right. Weve certainly done all the footwork, and Im
convinced of the value of a merger.
Peter: Why dont you run it by your partners?
Maxine: Ill do that, and get back to you next week.
The dialog ends with Peter asking Maxine to take action. He suggests she should
run the proposal by her partners, that is, she should ask them what they think
about it.
Now its your turn to practice the language we have studied in this episode.
First, lets review identifying obstacles. Imagine you are in a discussion that has
reached an impasse. Based on the cues, identify the main stumbling block to
agreement.
Other useful language use can use to identify obstacles includes What seems to
be holding us back is and what seems to be the main bone of contention is
After each exercise, well play an example answer. Are you ready? Lets give it a
try.
Answer 2: At this point the credit period seems to be the main bone of
contention.
Answer 3: As far as I can tell, the only stumbling block to agreement is price.
Now, lets go over some language for exploring alternatives. Youll hear a series
of cues that consist of jumbled or out of order phrases. Repeat the sentence in
the correct order.
Well play example answers after each exercise. Are you ready?
Thats all for this episode on overcoming blockage, which is part of our ongoing
series on negotiation skills. Weve studied restarting talks, identifying obstacles,
drawing someone out, exploring alternatives, moving towards agreement, and
taking action.
Answers
Listening Questions
1. He says he has been thinking about their companies, and if she is still open
to the idea he was wondering if they could get together to talk briefly about
some other possibilities. Overall, the tone of Peters suggestion is positive and
the content is not too specific. At this point, he is just trying to get Maxine
interested.
2. Peter identifies price as the main stumbling block to a deal.
3. Peter describes how the overall market tendency is towards increasing
consolidation of companies. He is saying that small companies like his and
Maxines must merge to have a chance to survive in the new market.
4. Peters key insight is that if Maxine values her own company so highly, she
will probably value his company highly as well. Since his ultimate goal is to
sell out his business for a handsome profit, he may be able to achieve that
goal now by selling his company to Maxine. In other words, he thinks outside
the box to reverse the roles of buyer and seller in the negotiation.
Language Review
A. Restarting Talks
1. Ive been thinking, and Ive come up with a different angle on everything.
2. I think I see things in a new light, and Id love to talk it over.
3. You are going to be very interested in the new developments, I think.
4. I think youll be excited about this new approach.
5. Ive got a new idea Id like to run by you.
As you listen, pay attention to how the deal is closed in both conversations. Try
to answer the following listening questions.
Listening Questions
1. In the first dialog, what does the supplier, Tony, want to confirm with his
customer, Paul?
2. What kind of positive language do Tony and Paul use at the end of the dialog
to reinforce the relationship?
3. In the second dialog, does Maxine say that the board has agreed to Peters
suggested price?
4. From the conversation, does it sound as though Peter will continue to work at
his company through the merger?
Vocabulary
Letter of intent: A preliminary, or beginning, agreement that describes the terms
for a future final contract. Letters of intent can be binding that is, it is legally
required to follow the agreement or non-binding that is, either party may
break the agreement without legal consequences.
Prompt payment: Payment on time or within a specific deadline. We have a
discount for prompt payment if you pay within two weeks of delivery, you can
get 5% off.
Paperwork: Generally refers to forms; in the context of the dialog, it probably
means a contract. Every day Ive got loads of paperwork to do.
Samples: Example products. Were very interested in your product, so could
you send us some samples.
To drop s/o a line: To contact s/o. It would be great if you could drop us a line
next week, either by email or phone it doesnt matter.
To come back very favorable on sth.: To return from discussions in favor of sth.
The executive committee met in private and came back very favorable on the
proposal to outsource training.
To be amenable to sth.: To be able to agree to sth. Im pretty sure he would be
amenable to your proposal.
To work out the details: To figure out the fine points. It sounds like a good
plan, but we have a lot of details to work out.
To have a personal interest in sth.: To be personally interested in sth. We all
have a personal interest in environmental protection this is our only planet,
and we all live here.
To see sth. through to a successful conclusion/to the end: To see sth. through
means to persist in doing sth. He didnt retire until he had seen the deal
through to the end.
To be key in/to sth.: To be very important in/to something. R&D is key to our
success.
Transition (from sth. to sth.): The (period of) change from one thing or state to
another thing or state. During the transition from the old owner to the new, we
all need to work together to demonstrate what a great team we are.
To be a big winner: To be very successful. Some people say the big winners in
the energy crisis are the oil companies, but their future is uncertain.
To be on the same page (about sth.): To have the same understanding of sth.
He is on the same page about this as we are.
To tie up loose ends: To deal with minor unsolved details. Theres just a few
loose ends to tie up, then we can sign the contract.
A. Bolts
Tony: Good news.
Paul: Great.
Tony: Head office has agreed to a 10% discount under the conditions we
discussed.
Paul: Letter of intent, prompt payment.
Tony: Thats correct. Though we just want to confirm that the second order is
going to be around the same size as the first.
Paul: If anything, bigger.
Tony: Great. Ill have the paperwork sent over later today.
Paul: Ok. Yes, and well want to see some samples.
Tony: Of course.
Paul: Looking forward to working with you.
Tony: And please do drop us a line if anything else comes up.
Paul: Will do.
B. Telecoms
Maxine: The board came back very favorably on the proposal.
Peter: Thats good news. So theyd be amenable to the price range we
discussed?
Maxine: Thats right. Of course, were going to have a lot of details to work
out.
Peter: Certainly, and Id like to help out with it. I have a personal interest in
seeing this through to a successful conclusion.
Maxine: Definitely. Your experience and knowledge will be key throughout the
transition.
Peter: Great, well, I really look forward to our further discussions.
Maxine: We feel the same way. Everyone thinks this deal is going to be a big
winner.
Debrief
It sounds like both deals are going to go through, that is, theyre going to be
completed successfully. Lets examine the language the participants use to
conclude their agreements.
Maxine calls Peter to tell him about her board of directors decision. She says the
board came back, or returned from discussions, very favorably on, that is, in
favor of - the proposal to buy Peters company.
When we close a deal, the first thing we need to do is to announce the good
news that we can agree to the other partys terms. What are some other ways to
do this?
Its a deal!
Its settled, then.
Good news! We can accept this offer.
I think this is fair to both sides.
Lets shake hands on it.
Good, I think we have an agreement.
After Maxine announces that a deal can be made, Peter summarizes the most
important information to make sure he and Maxine have understood each other
clearly.
Now lets take a look at the first dialog for a moment. How does Paul, the
customer, summarize Tonys terms? Its even simpler there Listen again:
Tony: Head office has agreed to a 10% discount under the conditions we
discussed.
Paul: Letter of intent, prompt payment.
Tony: Thats correct.
Tony says his head office has agreed to a 10% discount under the conditions
we discussed. Paul wants to confirm these conditions, so he just lists them:
Letter of intent, prompt payment.
So, both Paul (in the construction dialog) and Peter (in the company merger
dialog) have been careful to confirm the details of their arrangements.
What happens next in their discussions? Lets listen again to Peter and Maxine.
Maxine: Thats right. Of course, were going to have a lot of details to work
out.
Peter: Certainly, and Id like to help out with it.
Maxine says, we have a lot of details to work out, that is, to arrange.
Here, Maxine is tying up loose ends, or dealing with any unresolved points of the
agreement.
With Tony and Paul, there are also loose ends to be tied up. Listen again to how
they do it:
Tony: Though we just want to confirm that the second order is going to be
around the same size as the first.
Paul: If anything, bigger.
Tony: Great. Ill have the paperwork sent over later today.
Paul: Yes, and well want to see some samples.
Tony: Of course.
Paul and Tony have a few points to resolve. To get a quantity discount, Paul had
promised to place two orders with Tony one now and one in the future. Tony
wants to confirm that the quantity of the second order will be large as the first.
Next, Tony promises to send over the paperwork or contracts. Finally, Paul
requests samples, that is, example products.
Lets now review some further expressions that we can use to tie up loose ends
at the end of a negotiation.
Next, in both dialogs, the participants take this opportunity to reinforce that is,
emphasize and strengthen their positive relationships.
Maxine flatters Peter she says that his experience and knowledge will be key
that is, very important through the transition, or change of ownership.
What about Paul and Tony? How do they reinforce the relationship?
Pauls phrase Looking forward to working with you, is a simple and sincere
expression of goodwill. Tony then asks Paul to drop him a line, or contact
him if anything else comes up or he has any questions. This is both an offer of
help and a friendly request for more business.
In the construction dialog, Paul simply responds to Tonys request to drop him a
line with Will do. This warm reply ends the conversation on a good note.
Maxine says everyone thinks the deal is gong to be a big winner, or a big
success.
So, we can see how all participants have adopted a positive style to close.
Earlier, we mentioned that the completion of a deal is an opportunity to
strengthen relationships. One important way to build stronger partnerships is to
use positive language. Lets take a look at some more phrases we can use.
We are confident that we can provide you top quality at a good value.
This is the beginning of great things.
We are going to work hard to make this project a success.
We look forward to working with you.
Now, its your turn to practice. First, lets study reaching agreement. Imagine
you have been in discussions with some potential customers. Finally, you have
negotiated terms that everyone can agree to. Using the language in the cue,
announce the good news.
Then, the customers will respond by summarizing the terms. For example, they will say:
Example customer: So you are amenable to the price range we discussed?
Now, lets listen to some example answers. Of course, there are many possible
correct responses.
Practice 2
Okay, now lets practice useful collocations. Youll hear a series of sentences with
a word blanked out or replaced with a beep. Repeat the whole sentence, but say
the missing word.
Cue 4: It sounds like a good plan, but we have a lot of details to <beep> out.
Learner 4:
Thats all for this episode on closing the deal. Weve seen that reaching
agreement presents an opportunity to build stronger partnerships, and weve
studied summarizing terms, tying up loose ends, reinforcing the relationship,
and adopting a positive style.
Language Review
A. Useful Language
Review useful language for closing the deal by filling in the blanks in the
sentences below.
1. We feel the _______ way. And we are _________ that we can provide you
_______ quality at a __________ value.
3. Of course, lets let the lawyers talk about that. Were really looking
_________ to working with you!
B. Dialog Jumble
The sentences in Exercise A above form a dialog between Cecilia and Nicole, but
the phrases have been jumbled, i.e. placed in the wrong order. Put them into the
correct order in the space below. (The words following each bullet point are all
said by one person, i.e., sometimes one person says two or three sentences
before the other person speaks.)
After youve finished identify the expressions functions, i.e., reaching agreement,
summarizing, tying up loose ends, reinforcing the relationship or adopting a
positive style.
Function
Cecilia:
Nicole:
Cecilia:
Nicole:
Cecilia:
Answers
Listening Questions
1. Tony wants to confirm that the second order is going to be around the same
size (quantity) as the first.
2. Paul says he is looking forward to working with Tony. And when Tony tells
Paul to drop us a line if anything else comes up, (that is, call him if there is
any more business), Paul responds positively he says, Will do.
3. Yes. Peter asks Maxine if the board would be amenable to that is, be able
to agree to the price range they discussed. Maxine responds, Thats right.
4. Yes, it seems quite likely that Peter will continue to work at his company
through the merger. Peter says, he has a personal interest in seeing the merger
through to a successful conclusion. Maxine responds that his knowledge and
experience will be key throughout the transition, that is, the period of time in
which ownership is transferred.
Language Review
A. Useful Language
We feel the same way. And we are confident that we can provide you top
quality at a good value.
Thats good to hear. But I just want to confirm that early delivery is going
to be no problem.
Of course, lets let the lawyers talk about that. Were really looking forward
to working with you!
Definitely no problem there, though we do have a few details to mop up in
the contract.
Good news! Its a deal. We can accept this arrangement.
B. Dialog Jumble
Cecilia: Good news! Its a deal. We can accept this arrangement. <Reaching
agreement>
Nicole: Thats good to hear. But I just want to confirm that early delivery is
going to be no problem. <Summarizing>
Cecilia: Definitely no problem there, though we do have a few details to mop up
in the contract. <Tying up loose ends>
Nicole: Of course, lets let the lawyers talk about that. Were really looking
forward to working with you! <Reinforcing the relationship>
Cecilia: We feel the same way. And we are confident that we can provide you
top quality at a good value. <Adopting a positive style>
Useful Language
Bargaining chip
Since he was very flexible on warranty period, he used this as a bargaining
chip to get concessions on delivery time.
They are obviously using their good relationships with local government as a
bargaining chip to try to negotiate exclusive rights to sell our product in this
market.
Its too early in the negotiation to throw away bargaining chips never give
something up without getting something in return!
Deal sweeteners
If were going to get them to agree to our offer, were going to have to think
of some ways to sweeten the deal.
Why dont I sweeten the deal a little by increasing our discount by 1%?
Theres a variety of deal sweeteners that we can use to make buying our
company more attractive.
Synergy
After many mergers, the promised synergies fail to materialize, often
because of cultural and management differences.
A lot of what we are doing in negotiation is looking for synergies between our
companies.
Identifying synergy effects requires creative thinking.
To be a blessing or a curse
Fierce competition can be both a blessing and a curse.
Time constraints can be a blessing and a curse both speeding things along
and causing people to give up without reaching agreement.
Having a clear bottom line can be both a blessing and a curse its often
better to be fairly flexible in your approach.
Emphasizing solidarity
Our long-term partnership can only contribute to the success of both our
companies.
This is a great chance to forge an even closer and more productive working
relationship.
By working closely together, we can achieve great things.
Joining forces
Because we faced such fierce competition from larger companies, I suggested
joining forces with some of our competitors.
Originally, they were on opposite sides; but then, when they faced a common
enemy, they joined forces to defeat their competitor.
Starting off
May I begin by saying that we have looked at your quotation very closely.
First of all let me give you some background on our proposal.
We understand that you are looking for a solution to this problem.
Suggesting an Agenda
We have three main issues wed like discuss with you today.
I was thinking we could start by discussing the details of the order, then
moving on to price.
Clarifying
What exactly do you mean by that?
If I understand correctly, youre saying that production costs will be much
higher than expected.
Right. So I think what youre saying is you are not prepared to offer a higher
discount unless we increase our order, is that right?
Can you perhaps go into a little more detail on that?
Before we discuss this point Id like to be sure about your position on exclusivity.
Probing
Could you tell us more about your products special features.
Could you go into more detail about your standard delivery terms.
What kind of special offers do you have?
Wouldnt it be possible to ship the goods through South Africa?
Have you got an example of this?
I cant see how your position ties up with the rising raw material prices.
Exploring possibilities
I would like to explore a number of options with you.
There are a number of ways to look at this.
I think there are a number of possibilities wed suggest looking at.
Im sure we can find some common ground.
Being non-committal
Hmm Id need to think about that.
That could be a possibility.
That might be worth trying.
That depends can you tell me more?
Clarifying positions
If I understand the position correctly, you are looking for better credit terms,
am I correct?
As we see it, this is the position at the moment:
How do you see our objectives?
Can I just summarize our positions as I see them?
Expressing dissatisfaction
Unless your side takes a different approach, at this point I just dont see any
clear way forward.
Face it. Were wasting our time.
Frankly, were not satisfied with the offer on the table.
We seem to have reached an impasse.
That figure is just too rich for our blood.
Expressing regret?
Im sorry to hear that you feel that way.
Its too bad that we see things differently on this issue.
Well, obviously this is frustrating for both sides.
Creating goodwill
Obviously, though, there are other areas where well be able to work
together.
I would still like to emphasize how much we appreciate our partnership.
Despite our differences of opinions, we are committed to a long-term
partnership.
Your support means a lot to us.
Trading concessions
If I agreed to stagger the payments, would you find that more acceptable?
Would it help if we offered to install the equipment for free?
Give us a better discount, and well make a larger order.
We can toss in free delivery if you are willing to accept a later shipment.
Identifying obstacles
The delivery date really seems to be whats holding us back.
The main issue is payment terms, from what I can tell.
At this point the credit period seems to be the main bone of contention.
Exploring alternatives
How about we look at this from another angle?
Lets try something different.
What about putting this in a different light?
There might be another way to approach this.
Lets come at this from a different direction.
Taking action
Whats the next move?
Lets draft up a contract.
I suggest the next step is to get everything in writing.
Can you fax me a letter of agreement?
Please send me a detailed proposal by email.
Making a summary
Okay, lets go over everything one last time.
So lets just run through what we discussed again.
Lets confirm the details of our agreement.
To sum up, the terms are 5/10 net 30, payment by bank draft.
Id just like to make sure that were all on the same page.