Chapter 2 Bargaining at trade fairs | 39 Chapter 2: Bargaining at trade fairs BEHIND THE SCENES 1 Expressions of rules and conditions 2 Multi-word verbs ‘TRADE NEGOTIATION 3 Bargaining and sales strategies 4 Courtesy and politeness In Chapter 1, we learned that international business transactions begin either with an exporter looking for dealers or an importer searching for new suppliers. It is also possible that both sides come to meet at a trade fair. An international exposition (Expo), a trade fair or a trade show is a trade exhibition where goods are shown to the public worldwide. This is where we can observe face-to-face trade negotiations. It is organized by trade associations formed by companies in specific industries to showcase their goods and services (Capela 2008: 136). It attracts exporters and importers from overseas. Trade fairs promote the host country’s export sector, Trade associations that organize them are then supported or sponsored by the host government, ministries or agencies in charge of trade promotion (Cavusgil, Knight & Riesenberger 2014: 405), e.g. Austrade in Australia (www.austrade.gov.au), the International Trade Administration in the U.S. (www.trade.gov), the Japan External Trade Organization in Japan (wwwzetro.org), and the Department of International Trade Promotion (DITP) in Thailand (www.ditp.go.th). ‘Scanned with CamScanner40 | English for international trade communication 2nd Edition BEHIND THE SCENES. 1 Read the brochure below and answer the questions that follow. T\ Looking for new suppliers of wooden furniture or natural raw materials? Visit the 20" International Green Furniture Fair and meet exporters, importers, designers, _ manufacturers, entrepreneurs and business operators, from all over the world to showcase their latest designs and innovations in the furniture industry. The annual IGFF event, organized by The Golden Republic's Department of International Business Promotion (DIBP). Discover new inspirations. and technological breakthroughs at a one- stop venue. Be rewarded by an array of unmatched eco-friendly designs and raw materials, manufactured and handcrafted by Asian artisans, and meticulously selected for display. Awider selection of items! A combination of room décor products: furniture, dining table and chairs, outdoor and garden furniture, living room and office furniture, built-in parts, accessories and cost-efficient raw materials (walls, windows, doors, blinds, curtains, carpets, flooring, lighting, etc.) (@ \err 2025: The Spirit of Nature DURATION: Trade days: January 8 ~ 11, 2025 (10am-6pm) Public days: January 12, 2025 (9am-9pm) VENUE: King Midas National Convention Center, Golden Republic's CBD. ORGANIZER: Association of Green Furniture SUPPORTER: Department of International Business Promotion, The Golden Republic EXHIBITOR PROFILE: Furniture designers, manufacturers, business agents and exporters VISITOR PROFILE: Importers, wholesalers, retailers, distributors, commission agents CONTACT: Department of International Business, Promotion, The Golden Republic Website: www.igff2025.com ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 41 What is the name of this trade fair? When and where is the fair held? Who are the participants? Who organizes this trade fair? Who sponsors this trade fair? Are end-customers and retailers welcome there? What are some of the products exhibited there? Where can more information be found? eyaHawns The website ‘Foreign Trade Online’, available at www.foreign-trade.com/exhibit.htm allows you to search for international trade shows and exhibitions in a database where information is sorted by country, industry, show name and show date. 2 Find the trade show that interests you the most and share it with your partner. e.g. COSMEX 2022 Venue: BITEC - Bangkok International Trade & Exhibition Centre Date: Nov. 01, 2022 - Nov. 03, 2022 Bangkok, TH 3 Match the words with their definitions. b Business operator _-a~ A person or organization that provides products or supplies of raw materials ao Exhibitor -b~ A person involved in business transactions, e.g. importer, exporter, sales and shipping agents G3 Visitor c An importer or an import agent who wants to buy products at a trade fair = Venue Mh person who displays products at a trade fair and sometimes offers them for sale ~ 5 Supporter 7 h persion sého owns oF sets up a business 6 Organizer _A A person or institution that sponsors a trade fair Ja7 supplier Lg Aplace where an event or activity is organized £8 Entrepreneur _b» Aperson or institution that organizes a trade fair ‘Scanned with CamScanner42 | English for international trade communication 2nd Edition 4 Complete the sentences using words or phrases in the box. a is held at P cost-efficient Dore akthroughs S built-in is is organized by é array _S /enue __ 4 combination 1 Visitors to this trade fair can find a *____ of home decoration products. 2 IGFF 2025 . King Midas National Convention Center. 3 IGFF 2025 = The Assgciation of Green Furniture Industries. 4 Come and discover new in the production of wooden furniture. ts 5 The__ is close to many big shopping centers in the heart of the CBD. _ 4; . 6 Visitors can find an ¢~ __ of uniquely designed furniture and home a accessories at |GFF 2025. 7 If something is c or cost-effective, it is productive relative to the cost. 8 Anew model of smartphone comes with a zoom lens. To make sure that people who come to the fair are genuine exporters and potential importers, registration is required. First, interested manufacturers or export agents who want to exhibit their goods will have to certify themselves eligible as exhibitors. Importers or sales agents from overseas who want to buy the displayed goods at the fair also need to certify themselves as visitors. Once registered online through the organizer's website, invitation letters will be sent to applicants by email. With the invitation letter, overseas buyers can apply for a business visa to the country where the exhibition is held. Once at the fair, visitors are given an entry badge. Exporters and importers are labeled with different badges. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 43 5 Read the online registration form below and answer the questions that follow. @ WORLD FINE ARTS SHOW & Your entry ticket is personalised and therefore non transferable. It allows you to travel for free on local public transportation provided in the region of the Coastline Transport when used together with your identity card/ passport. Entrance tickets cannot be refunded or exchanged. How would you like your tickets? ©Ticket as printable pdf © Tickets on your mobile phone What type of admission would you like? © Season ticket (46.- EUR) for__ person(s) © Day ticket (29.- EUR) for __ person(s) Are you a new or an existing customer? © | ama new customer. © | aman existing customer. As a trade visitor, we kindly ask that you provide your professional contact details: First name Ee) Last name aie) Company Email = (— ez] Address } © | want to receive the invoice via email. Before you can proceed, we must ask you to consent to your data being processed and used in order to enable us to continue the process. If you do not agree to your data being stored, you can also purchase a non-personalised admission ticket directly at the ticket office on location without consenting to the use of your data. Children under 15 are not allowed into the hall. 1 How much would two day-trip tickets cost? S & 2 Can tickets be refunded in case of cancellation? his 3 Can admission tickets be bought at the exhibition venue? 4 What service is provided fre forthe price ofthe entry ticket? Loe) Ph: lee: 5 Who is not allowed into the exhibition hall? \y hty- 1 xy u ‘Scanned with CamScanner44 | English for international trade communication 2nd Edition Once the applicant has registered and paid for the tickets, a receipt of payment is given by email, sometimes with an invitation letter attached. For some trade exhibitions, an invoice or receipt of payment functions as an entrance ticket to the fair. 6 Read the following receipt of payment for the tickets and answer the questions. WORLD FINE ARTS SHOW Asa Matter of Arts (AMA) Co Ltd Nov 11, 2022 99 Western Avenue , 60555, Frankfurt, Germany Customer No.: 47593755 Invoice no.: 2849470008 Dear Sir or Madam Welcome to World Fine arts Show. On behalf and for the account of the World Fine Arts Show, VAT no. DE814105739, we charge you for the following service articles, which have been ordered by you: Quantity Article Card numbers Price Total price VAT 4 tickets 288 756 8889 37.26 EUR 149.04 EUR 19% 288 756 8890 288 756 8891 288 756 8892 Net amount 149.04 EUR plus statutory VAT: 34.96 EUR 19% Total amount 184.00 EUR * The total of 184.00 EUR has been collected by credit card on the date of invoice. * Admission tickets cannot be returned neither can payments be reimbursed. * If you have any questions or complaints, please contact worldfineartsshow.com * The conditions of this entry tickets are subject to change without prior notice. 1 What is the name of the fair? wb d 2 Who are possible exhibitors participating in this trade fair? 4 wh prof 3 Whats the name of the company buying these tickets? metry 4 How many people from the above company are participating in this trade fair? a 5 How was this registration fee to the fair paid? Cred ‘Scanned with CamScannerJ Chapter 2 Bargaining at trade fairs | 45 When an account/application is registered and receipt of payment is issued, an invitation letter may be attached to an email sent separately to the applicant. This is so that the applicant can make use of the letter for the business visa application. After payment is made, an organizer of a trade fair confirms that an entry ticket to the fair is gyaranteed by giving an official invitation letter. This e-invitation card includes the name Of the fair, the dates and time in which the fair is held, the venue of the fair, and the name of the applicant and his or her affiliates. An example of an e-invitation letter is shown below. 7 Read the following invitation letter and answer the questions that follow. [[il The Globe International Expo 2024 Phase 1: April 15-19, 2024 (9am-9pm): Electronics & electrical appliances; lighting equipment; vehicles & spare parts; machinery; hardware & tools; building materials Phase 2: April 23, 2024 (9am-9pm): Textiles & garments, shoes, office supplies, cases & bags, recreation products, medicines, medical devices and health products Phase 3: 27 May 1-5, 2024 (9am-9pm): Consumer goods: gifts, home decorations The Globe International Expo 2024 cordially invites MNT International Co Ltd 22/64 Surawong Rd. Bangrak, Bangkok 10500, Thailand We sincerely welcome your presence to the 48" The Globe International Expo 2024! The following are necessary documents to receive an entry badge at check-in counter: * Paper invitation or e-invitation issued by the Globe International Expo. * Valid original personal documents or passport * Arecent passport photo = Business card The entry badge is valid for multiple sessions of the fair. If lost, a replacement will cost 200RMB. Dress in business or casual attire, but shorts and sandals are not permitted. Shuttle bus service between exhibition halls is available. Web: www.theglobeinterexpo.com Email: theglobeinterexpo@interexpo.com ‘Scanned with CamScanner46 | English for international trade communication 2nd Edition 1 What is the name of the invited company? 2. What is the name of the fair? 3 When does the fair start and end? 4 What important documents are needed in exchange for an entry badge? 5 What are some of the products presented on May 34, 6 What are not allowed into the exhibition hall? International trade events may be divided into many phases to showcase a variety of products at the same exhibition hall. Visitors can then choose to be present only on the day or session that they are interested in; that is to register for a day ticket. Alternatively, they can pay a bit more and buy a season ticket to participate in all phases and sessions, Language focus 1: Expressions of rules and conditions We have seen earlier in Activities 4-6 that there are some rules and conditions mentioned in the application and admission tickets. It is important to make sure that you understand these rules and conditions clearly so that you do not get into trouble once you are at the fair. Failing to meet these requirements may result in admission being rejected at the gate. Common expressions in conveying terms and conditions can be divided in different grammatical categories shown below. Active & passive voices _ ... allows /permits / enables you to... .. Is /are not allowed / permitted .. cannot be exchanged / refunded / reimbursed Infinitives with ‘to’ It is necessary / compulsory to... Modal auxiliaries You must agree / consent to... Adjectives wu ds valid for... ... is subject to change without prior notice Conditionals Before you can proceed, ... /f..., you can... Imperatives Read the terms and conditions carefully. Do not bring food and beverages. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 47 8 Complete the following sentences using phrases in the box. before you can proceed be purchased directly welcome your presence to has been collected by is valid for are not allowed into kindly ask that consent to if you do not agree on behalf of the organizer are subject to change allows you to 1 The entry badge multiple sessions of the fair. 2 Children under 15 __sthe exhibition hall. 3 Your admission ticket can______———— at check-in counter. 4 Wesincerely__ sth 101th World Electronics Fair. 5 The conditions of this admission fee without prior notice. 6 The payment of AUD808 credit card on the date of invoice. 7 we thank you for your support at the Mobile and IT Fair. 8 you must agree to the processing and use of your data. 9 The entry ticket use public transportation for free. 10 All dealers have to an MOQ of 1,000 copies in their first order. After we are done with the registration, the next step is to apply for a business visa, pay for the airline ticket that was booked earlier, make hotel reservations, contact your freight forwarder to let them stand by, and prepare your travel and business documents. ©® Discussion: What sort of information or documents should be arranged before arrival at a trade fair? Think from the perspectives of both an f exhibitor and a buyer. — \ mE! 5 or ‘Scanned with CamScanner48 | Englishyfor \nternational trade communication 2nd Edition 9 Complete the following sentences 1-6 and 7-14 using words or phrases in the boxes. Then, number all the sentences in the correct order. aisles threw away security display racks delivery person put up express courier banners A day before a trade fair 1 __ They set up and laid up brochures on a display table. 2 6 They stored extra materials under the table and some trash. Siac brought some materials from storage, which had been shipped the day before by from overseas, and stacked up the boxes near the booth. 4 __ Janet and her staff unpacked the boxes, hung up stood on stools and reached up to posters. Ss a She flew to the trade fair and arrived one day earlier before it is open. 6 ext After checking in, she showed ____ her badge, looked for her booth on a map and walked through the__ to her booth. signin promotional items took turns gave away closed down products were on duty gave out Ata trade fair 7 __. The staff going on break and Janet took over. 8 14 Atthe end of the day, they the booth together. 9 7 Onthe next day, Janet's staff at the booth. 10 ____ They straightened things up, put away post-it notes, pen and pencils, and welcomed visitors to the booth. 11. __ Janet asked them to leave their business cards and the visitors’ book so she could contact them later. 12 ___ The staff asked visitors about their needs, some free samples and i 13. _ They catalogues, and made small talk with some visitors. 14 __ After demonstrating some of their some visitors asked questions Janet could not answer. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 49 10 Complete the following paragraph using words or phrases in the box. | walked through signed up displays met up with program packet picked up exhibition hall stood in line Jim is a visitor to a trade fair. Upon arrival at the fair venue, he entered the convention center and walked into an (1). . There were many people queuing up, so he (2)_____ to check in. He told the clerk his company name. The clerk found the name on a list of pre-registered participants, printed him his name badge and gave him a(3)________. He put on his badge and (4)__—_the exhibition. He checked the company directory and went to the area in which he is interested. At some booths, he checked out the (5), tried out some sample products and (6)_________ some catalogs. Later, he saw an interesting session at one of the rooms, so he (7)_____for it and spent an hour there. Then, he (8)___a supplier whom he had made an appointment earlier. Language focus 2: Multi-word verbs Multi-word verbs are lexical verbs used in combination with their particles in conveying several different meanings. The particles can be prepositions or adverbs. The first type of multi-word verbs are phrasal verbs. She put on her jacket. (put on = cover oneself with a piece of something, e.g. clothing or jewelry) She put away her jacket. (put away = keep something in the place where it is usually kept) She put down her phone number in the book. (put down = write something on a piece of paper) Janet gives away free promotional items to her customer. (give away = give as a present or gift for free) Janet gives out brochures and catalogues to her customer. (give out = distribute for free) Most multi-word verbs are transitive verbs, so they are followed by direct objects which may come before or after the particles. When the object is changed into a personal pronoun, that pronoun can only be positioned before the particle, not after it. ‘Scanned with CamScanner50 | English for international trade communication 2nd Edition She put her jacket on. () She put on her jacket. (“) She put it on. (“) She put on it. (x) Some examples of phrasal verbs: check out, close down, cross off give away, give out, give up, fill up, find out, finish off, hand in/out, hang up, look over, pick up, put away, put down, put on, stack up, set up, take out, talk over, throw away, try out, turn down, write down The second type of multi-word verbs are prepositional verbs. The lexical verb and the particle in the phrasal verb can be separated by an object as shown in the above example. This is not the case with prepositional verbs where a verb and a preposition are closely linked with each other syntactically, so cannot be taken apart (Collins 2018: 201). The following inseparable multi-word verbs (i.e. look at, look for, look after) are therefore not phrasal verbs, but prepositional verbs (Carter & McCarthy 2006: 434). Jack looked at the customer. (“) Jack looked the customer at. (x) Jack looked for the customer. (”) Jack looked the customer for. () Jack looked after the customer. (v) Jack looked the customer after. (x) We ave running out of supplies for production. (“) We are running supplies out of for production. (x) (run out of = be used up, no more left) We ran into Larry at the Frankfurt Fair last month. (“) We ran Larry into at the Frankfurt Fair last month. (x) (run into = meet someone unexpectedly) Some examples of prepositional verbs: approve of, call on, catch up with, check in, come across, deal with, get in touch with, listen to, look after, looking for, look forward ta, meet up with, put up with, sign in, sign up for, sit through, walk through, watch out for ‘Scanned with CamScanner4 Chapter 2 Bargaining at trade fairs | 51 11 Match the multi-word verbs in A with the noun phrases in B. Make new sentences using the matched phrases. A 8 Examples 1 giveaway_b —a_ fliers and brochures Janet gave away free samples to her customers. 2 giveout__ _b free samples 3 signin__ © aworkshop 4 signup for____d_ the visitors’ book 5 throwaway e-paper and stationery 6 put away __ f some trash 7 checkin __ g thetime 8 chéck out __ h atacounter Match the multi-word verbs in A with the noun phrases in B. Make new sentences using the matched phrases. A B Examples 1 walk through _# a some products Jim walked through exhibition hallto his booth. 2 setup __ b_ boxes on the floor 3 pickup __ ¢ asupplier 4 hang up __ d_ some catalogues 5 stack up __ e display racks 6 puton__ f exhibition hall 7 try out__ g_ banners and posters 8 meetupwith__ han entry badge 13 Watch a youtube vdo on “China Fair 2017 — 5 tips for navigating China's largest trade show” and find out the tips for visiting the fair. ‘Scanned with CamScanner52 | English for international trade communication 2nd Edition TRADE NEGOTIATION Because the meeting at a trade fair is rather open, it is possible that the person visiting your booth may actually be your competitor who wants to find out your business information. There is nothing illegal about doing so as long as they do not overstay and take up too much of your time (Capela 2008: 140). You just need to be a keen observer of the person's body language, facial expressions, tone of voice, contents of their talk, the kind of questions they ask to separate them from your potential customers. Of course, this is easier said than done as it requires good experience of a sales person. If you misjudge your customers to be competitors, you lose sales opportunities; if you misjudge your competitors as being customers you risk leakage of valuable business data. Discounts and price negotiation For fear of starting a price war that will ruin the market in the long run, suppliers usually set up prices for their dealers. This is called the recommended price or list price. These prices are normally shown in catalogues. This price is a retail price recommended for the dealer to sell to their customers, while the dealer themselves will get the profit margin from the discount rate they are given by their suppliers. This is called trade discount. Different dealers also have different discount rates depending on the quantity of goods they buy (quantity discount), how quickly they pay (cash discount), seasons of sales (seasonal discount), or simply the long-term relationship they have with their suppliers. As dealers are given different discount rates depending on these factors, there is a room for negotiation. It is common for dealers to make a bargain for their best prices in their first orders. Suggested expressions for bargaining and price negotiation are shown in Witte (2017a: and 2017b). But of course negotiation can go further than just prices and discounts. In the following section, we will look at few cases of trade negotiation. Negotiating business deals is an art of communication which requires not just good language skills, but also years of experience in business communication. The skills required are important for all business parties concerned in a transaction. Buyers would of course drive a hard bargain to have the goods and services at the lowest price possible to maintain their profit margin in order to penetrate or crack the market, while sellers want to offer them for sale at higher prices. All customers expect to be treated as special, so it is their nature to talk about concessions. Trade negotiation is not about defending what you will lose, but giving yourself new opportunities to gain. There is no need for sellers therefore to get offended because they too can have a go in exchanging what they think could compensate for what is bargained. This is called a quid pro quo. For example, a salesman may promise an ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 53 additional discount as a quid pro quo for larger orders from his customer. Lower profit margin is a trade-off for larger sales volumes. Remember there is always an acceptable trade-off in a business transaction and both customers and sellers expect a quid pro quo from each other. That is why we negotiate in the first place. Stages in trade negotiation It is important to know what stage you are at in the negotiations. Imagine that you think you are closing a deal, while the other party thinks that the negotiation is just started. What would happen? In such case, if you are the seller, you would throw in your best shot, the best offer you could think of, while at the same time you customer takes that as a starting point to bargain further for better deals. Tomalin (2012: 84) introduces the five-stage approach to understand where you and the other person are in the negotiation. Stage 1 Prepare Each side explains who they are, their positions and their market demands. At this early stage, they reveal their expectation from the negotiation. Stage 2 Explore Each side takes turn asking questions and raising discussions. The point is to study about each other as much as possible to find out more about what the other person needs and expects. This stage is important because we can only learn about the other person through asking questions to gain more understanding of him or her. Stage 3 Propose At this stage, negotiators make initial proposals. This could come from either side or both sides. These proposals can be used as points for further specific negotiations. Stage 4 Bargain This is the stage during which bargaining really takes place. Both sides bargain about what they want and what they can offer, and they ask the other side for concessions. Stage 5 Agree This final stage closes down the negotiation. This stage is signaled by a phrase saying that the agreement between both sides is reached. ‘Scanned with CamScanner54 | English for international trade communication 2nd Edition However, as Tomalin (2012) himself admits, the above five-stage approach is proposed merely as a guideline. In practice, negotiations do not follow the steps exactly. For example, new points can be raised at any time, and this makes negotiators go from the bargain stage back to the explore or the prepare stage. In more formal and long-term deal settlements between companies, Jensen (2009) broadly categorizes business negotiations into three phases based on her linguistic study. Her framework is broader as shown below. 1 The contact phase This is similar to Tomalin’s Prepare and Explore stages. This is the stage at which initial contact between two companies are established. Both sides introduce each other, their agents and sales representatives. 2 The negotiation phase This is the period during which trade terms are proposed and bargained. For example, this can be done through requests for more information, details related to contract terms such as minimum order quantity or annual sales volumes. 3 The in-business phase This period follows right after the final agreement is reached. This is signaled, for example, by the statement: “/’m very glad that we're in business together ...” Jensen 2009: 11). In formal situation, this is when a contract is signed. But again, phases in business negotiations do not necessarily run in sequence. These phases may overlap and intertwine. For example, an email from a local dealer to an exporter introducing his or her business at the contact phase may as well ask for special Promotions, which is part of the negotiation phase. At the negotiation phase, sellers do Not just negotiate requests made by their dealers, but also introduce the regional sales team, which is part of the contact phase (Tangpijaikul 2020). Perhaps, specific steps in trade negotiations cannot be outlined exactly, but at least we see that both Tomalin’s and Jensen’s frameworks are in line and that they both give us a big picture of necessary steps required in trade negotiations. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 55 Language focus 3: Bargaining and sales strategies Negotiation is mostly done in first orders and once the prices and trade terms are settled in initial orders, they cannot easily be changed. Negotiating business deals is not just about prices, but other conditions such as sales volume, delivery modes, payment terms. The following are some useful expressions for bargaining and negotiating for business deals. Seeking information > What can you tell us about ... ? - What do you think about our new models? - Tell me about the same local products on the market. Giving information The way we see things is that ... = The problem we're facing right now is ... - What we want to achieve is to launch our products in the new market. - Our situation is that we are very much concerned about quality / quantity. Quoting prices - May | have the quotation for ... - We can offer you a price of ... per unit / item / set - The prices quoted here include ... (freight charge, insurance) - Please quote your best DDP / FOB / CIF air freight price. Giving discounts or proposals - We can only allow for an additional 5% on top. - These prices are subject to a 20% trade discount. - We can offer you 15% off net price for payment within 30 days. - We can give you a further 10% If your order exceeds 400 items. - We grant a cash / trade / quantity discount of ...% on our list prices. + On regular orders of not less than ..., we would allow you a trade discount of ... Bargaining for more discounts or better deals - Can you give us a bit more discount? - Is it possible to go down a bit on the price? - Could you go down to 6 dollars a unit for this trial order? - We would appreciate it if you could increase our discount. - Do we have to take the whole lot/package? Can we pick and choose? - Can you offer us free shipping in exchange for monthly regular orders? - Will you cut us more discount if we can promise you 5 pallets a month? ‘Scanned with CamScanner56 | English for international trade communication 2nd Edition Rejecting compromises - That's a very low price already. + Oh, c'mon! You're twisting my arm. - | don’t know if we could sustain that. - I'm afraid that wouldn't be acceptable. - I must insist that this is the furthest we can go. - I don't think | could get my boss to go that low. - Well, | just don’t see what the trade-off is for us. - What would happen if we offered a low price but for a bulk order? - Let us not forget that the new model comes with latest technologies. - If you consider our position, you'll understand why we can’t go that low. - | do understand your position, but I'd like you to think on our side as well. - We cannot accept less minimum orders unless you agree to longer lead time. Closing sales - What price do you have in mind? - Let me punch up some numbers here. - We can go as low as 50%, but that's all we can do. - What number were you thinking you could get to? - If | were you, | wouldn't take too long to reconsider that. - | really would urge you to place orders as our stocks are limited. - As our stocks are limited/running out, we suggest you place your order now. - As the prices are likely to rise, we would advise that you place an order now. - We could probably go down to 37 dollars per set. Would that work for you? - We could come down a bit, since we're very anxious to open the new market. - If that's not enough, maybe you can tell us what else might work for you. Giving something extra - We can't lower the price, but I can certainly throw in something extra for you. - We can't bring the prices down any more, but we can throw in free shipping. - We can waive a surcharge on shipping and handling services. - We could extend the warranty an extra month. - I'm proposing we do this. Reaching agreements - Ok. Let's agree on that. + Ok. I'll confirm this order. - I'd like to place my order for ... - I'm happy / comfortable with that. - Please see attached my purchase order. - l accept the quotation and confirm this order. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 57 - | can live with that. Our next step is then to work on a contract. - We can commit to that agreement, but need to see it in writing. ~ We'll draw up a contract and forward it for your signature. Not committing to a proposal right away - We need some time to think about this. Can | have you name card? - I'll have to take that back to my supervisors. Thanks for the quote. - Ok | have your email address here, so we can keep in touch. Good prices normally come with other trade conditions. Even if you are successful in negotiating desirable price, you may find out later that the price you negotiated turns out to be a factory-gate price, so does not include the shipping costs, or that you are not allowed credit payment which you might have expected. Talking about delivery and payment are therefore part of the price negotiation along with other trade terms. The following are some useful expressions about delivery and payment terms. Confirming delivery options - The goods can be shipped out immediately after receipt of the order. - We would be able to deliver within a week after receipt of the order. - We have all the delivery options: FOB, CIF, ExWork or DDP. - We can deliver on pallets to ... Bargaining for better delivery options ~ Can you consolidate all my orders in one invoice? - Is it possible to have the goods shipped to my forwarder’s warehouse? - Would it be possible to have you ship it out in three days? Informing payment terms - This shipment must be paid in US dollars. - We can open a trade/credit account for you, but not for the first shipment. - For the first order, an irrevocable letter of credit is applicable. - We can charge your credit card. Bargaining for better payment options - Can | open an account with you instead? - Is it possible to pay in your local currency? - Can you waive credit card fees for me? - Could you consider extending credit terms from 30 to 60 days? - We can waive the delivery fee if you pay up front. ‘Scanned with CamScanner58 | English for international trade communication 2nd Edition There are several techniques in negotiating deals, and the use of these technique, depends on individual preference and situations. Some use hard sell approaches, other, prefer soft sell. Some salespersons are rather aggressive, aiming at closing sales quickly, while others resort to subtle persuasion. But in the end, what we all want in a business negotiation is a win-win, that is both sides are happy at the end, not a no-win situation, One way to understand these techniques is to learn from case studies in trade negotiations as shown in the following dialogues. Case study 1: Good guy and bad guy Buyer: We're interested in your new released products and | hope ... Seller1: I've got lots of orders coming. Can you wait for a second? ... [Leaves and comes back in 30 seconds] Sorry, | was in the middle of a meeting. OK. Let's get going with this, I'll tell you what, I'll give you the best price if you can place your order right now. Buyer: Actually we were looking for someone who can supply us with around 3,000- 4,000 bottles a month to feed our five locations. So, for the whole year ... Seller1: Four thousand units? Not many! So, the best discount we can give is 25%. Buyer: What? The discount | was quoted earlier was 35%. Sellert: Can't give you that. Your order is lower than our minimum order requirement. Buyer: Didn't you say earlier that your minimum order was ... Seller1: Sorry. Twenty-five percent is the number we can do. You can take it or leave it. Seller2: Ow ow ... Mr Collins, why don’t you get back to your meeting while I'll take care of this gentleman here. Seller1: OK. But remember twenty-five percent is the bottom line. OK? [Seller 1 leaves the scene] Seller2: I'd like to apologize for Mr Collins’ attitude. I'm sure he didn’t want to be mean. Buyer: | understand, but didn’t you see how he behaved? Seller2: He's just under lots of pressure today. | know he wants to hold his bottom line, but between you and | we can work something out. | think we can give you a bit more, since we're very interested to open this new market. If you would increase your order a bit more, then | can give you a better cash discount. The above dialogue is adapted from Pinet (2011: 64). This is an example of what Pinet (2011) calls ‘a good guy/bad guy tactic’, involving at least a team of two salespeople. The one who acts as a bad guy is angry, irritable, disagreeable, and always in a hurry and wants to close the deal real quick. This is realized by the use of sentences such as these. ‘Scanned with CamScannerChapter 2 Bargaining at trade fairs | 59 Let's get going with this. /was in the middle of a meeting. Can't give you that. Sorry, you can take it or leave it. 11 tell you what, I'l give you the best price, but you gotta order right now. If the bad guy was successful, the deal is closed quickly and preferably for the seller. If not, the good guy follows through and intervenes. The person who acts as a good guy ‘on the contrary is calm and helpful. The language of the good guy can be observed by sentences such as these. Let me apologize for... What price did you have in mind? Just between you and |, we could come down a bit. It might take a bit of arguing on my part, but if you're really interested ... This sales tactic is to make customers feel like the good guy is on their side and willing to do whatever he can to favor his customers, even if he has to go against his will or the usual company norms. Customers then feel that they are being treated or given a special deal, better than any other customers. Let us now move from the above progressive technique to the defensive one called ‘What-if and questioning technique’. Consider the following negotiation between an importer and an exporter adapted from Tansurat (2008: 86-7). Case study 2: Conditioning and questioning Buyer: Hi Jane. How are you? Seller: I'm very well. Thank you. Have the goods arrived safely? Buyer: Yes, very fast Jane. That's why we'll have to place new order with you very soon. Seller. At your service Bill. That sounds great. Buyer: Hey Jane, there is something I've got to tell you. My manager's just complained to me. Our company does not normally accept L/C. My boss said the first time is OK for L/C, because we didn’t know each other. But is it possible to deal with you in D/P from now on? It’s our policy in fact. You can trust us. All our suppliers accept D/P with no problem at all. This is the best option for both of us, Jane. It is quite common for an importer to pay through letters of credit (L/C) especially in first orders. However, it is possible that the same importer may ask to change from L/C to D/P (Documents against payment). They may complain that they have to pay more bank fees when they open L/C with the bank. But for an exporter, D/P is not as secure as L/C. This is because conditions spelt out in the letter of credit are irrevocable, meaning that ‘Scanned with CamScanner