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Price in Negotiation

Price is the key point in negotiation, the most important element both parties concerning with. Thus, to determine the price is quite critical. Always, it has three processes to determine price in negotiation: quote, bargain and making the final decision. Quote Quote is the first step of the negotiation. Both buyer and seller are very cautious about quote. Error in quoting will cause subsequent passiveness and loss. As for a buyer, the quote is always as low as possible, in order to make a deal with lower price. But as for a seller, it is quite common to quote a high price. Both of them should consider their own benefit as well as the other party’s possibility of acceptance. Typical Sentences: We’d rather have your CIF prices than FOB prices. 我们希望你们报到岸价,而不是离岸价。 We wish you’ll give us a competitive price. 我们希望你们能够报给我们一个比较有竞争力的价格。 We’d like to quote you as follows: 500 sets of Panda radio at the price of USD 30 per set FOB Shanghai. 我们给你们的报价如下:熊猫收音机 500 台,每台 FOB 上海 30 美元。 Here is our offer, 490 Francs per ton, FOB Marseilles. 这是我们的报盘,每吨 FOB 马赛 490 法郎。 Unless otherwise stated, our quotations on this offer sheet are given without engagement. 除非另有声明,此报价单上的报盘均为虚盘。 Bargain When one Party gives an offer, the other Party will make a counter offer. That is bargain. During bargain, both parties should pay attention to the following points: stick to principles and do not hurt the other party’s emotion; argue strongly on just grounds with good grace. Intelligence, strategy and strength will be completely revealed. Typical sentences: Is it possible to reduce the price by 16%? 有没有可能把价格降低 16%? I’m sorry we can’t make any reduction because the price quoted is already very low. 对不去,我们不能再降价了,因为我们的报价已经很低了。 Our offer is very practical, so we are sorry to say that your counter-offer is unacceptable. 我们的报盘很实在,很遗憾您的还盘我们不能接受。 I suggest around US $380 per metric ton CIF Guangzhou. 我建议把价格定在 CIF 广州每公吨 380 美元。 If your price is not competitive, there is little chance that we can push the sale of your product in our market. 如果你们的价格没有竞争力,那么我们不可能在我们的市场来推销你们的产品。 Compromise After intensified discussion, both parties will make concession accordingly. That is the compromise stage in negotiation. This is a critical stage to the final agreement. Typical sentences: As a sign of our support to your effort, we’ll make a special reduction of US $ 1 per dozen. 为了表示我们对你们工作的支持,我们将为你们提供每打降低一美元的优惠。 As a special case we may consider accepting payment by D/P. This will make it much easier for you to push the sales of these products. 作为特例,我们将考虑接受 D/P 付款的方式。这样更便于你们推销这些产品。 We agree to September shipment if the quantity offered is acceptable. 如果提供的货物数量可以接受的话,我们同意九月发货。 Final say and signing After discussion and compromising, parties of the negotiation will finally come to an agreement. Representatives indicate the results are acceptable. After the final say, they should sign on a contract. Contract will take effect only after signing. Typical sentences: Let’s discuss the contract item by item. 让我们逐条来讨论这份合同。 We have a few remarks to make on some clauses of the contract. 关于该合同的某些条款,我们有几点想说一下。 I suggest we sign the original of the contract with the attachments. 我建议我们把合同的原件和附件一起签了。 The draft contract will be ready for signature this afternoon. 今天下午可以在草拟合同上签字了。

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