JM - Jeny Mullins CH - Charles Ramsay

JM: I've come to see you about the course I applied for. I couldn't believe it when I got your memo. What's the problem exactly?

CR: I thought I made it clear, we can't lee you go. There's just no money for that sort of thing, anyway not for the moment.

JM: Oh, how come?

CR:It's the cutbacks, our budget's been reduced, so we can't do all the things we'd like to do. I'm sorry, I know you're disappointed, but then so are a lot of other people.

JM: Well it's not good enough. You can't tell me that a company this sizecan't find the money to pay for the course. It only lasts three days, and it's not that expensive. What's three hundred pounds these days, for goodness' sake.

CR: It's a lot of money, I can tell you and ...

JM: Oh come on now. In any case, they promised me back home. I could go on any course I wanted during my attachment here. Now you're trying to worm out of it with all this talk of cutbacks ...

CR: Hold on now. Let me explain how things are here. When money's tight like it is now, middle managers get priority. If there's anything left over, it's the turn of people like you. OK?

JM: No, rubbish! It's not the way to do things at all. Totally unfair. I can't miss a chance like this. I've really got to go.

CR: Sorry.

JM: Look. how about ... erm ... if I were to offer to pay something towards the course ...

CR:Eh?

JM:Yeah, I’d be willing to put some money towards it ... say, erm, well maybe a hundred pounds. How about that?

CR: I'm sorry, we couldn't consider it. We just don’t do things like that.

JM: All right then, I'll pay a hundred and fifty. But I can’t afford more than that. Surely that's reasonable. What more do you want?

CR: Listen, Mr Mullins. You've got to understand - there's no way you can go on the course, right? It's company policy - I can't change it. And you've just got to accept it. If you work in a company like ours, you've got to toe the line sometimes.

JM: Mmm… so that's it, is it?

CR: Afraid so.

JM: I was hoping you'd be a bit more flexible. Didn't expect to be refused point blank. I can't believe it.

CR: We'd better leave it there, I think. Things may be different in a few months time. There could be more money around for ...

JM: It won't help me. I'll he back home by then.

Dialogue 2

HG - Hans Guertler / HD - Helen Dawson

HG: OK. Helen, come in to my office.

HD: Thank you very much Hans. I must say that was most interesting. That's quite good equipment, isn't it?

HG: Yes, they’re certainly good machines.

HD:Mmm.

HG: And they are worth a lot of money.

HD:Well I'm not sure about this yet but, erm, we are in the market for second-hand equipment, so let's talk.

HG: Right, well, for all the equipment as you've seen it, we would like to bill you a hundred thousand pounds.

HD: Oh my goodness! I'm not sure that, er, we're going to be able to get anywhere near that, Hans.

HG: Well, you know they are top quality machines and they're in excellent condition.

HD: Yeah, that may be so, but we're going to have to, er, look at this a little differently. I had in mind something nearer seventy thousand pounds.

HG: No way Helen, sorry.

HD: Well I'm afraid we're not going to be able to do business then.

HG: No no, just a moment. Er well, what about ... let me see ... well I could manage eighty thousand.

HD: Eighty, you say?

HG: Yes, but you would have to pay a deposit, of thirty thousand up front and the balance within six months.

HD: Thirty thousand, and the rest over six months.

HG:That's right. How does that sound to you?

HD: Well, I think we might be able to do that.

HG: Fine then. That's agreed.

HD: Good, but I think we ought perhaps to cover one or two other prints before we get too far.

HG: By all means, what are they?

HD: Well, First of all, could we talk about servicing and spares?

HG:Sure. As you know the spares are OK - they're off the shelf. And the servicing, if there is a breakdown, we'll fix it.

HD: Uh huh. And what about warranty? You know we'd really like a one-year warranty.

HG: Oh well, that's a bit difficult, Helen. You know company policy is three months. And I'm sorry I can't go along with you on that. We have to stick to three months.

HD: Really?

HG:Yes. I'm afraid so.

HD:Oh, all right, well let's leave that point then, erm, what else haven't we talked about, what about delivery?

HG: Well, we could get everything to you probably within two months.

HD:No, no, no. That's no good. I'm afraid, no good at all. We shall probably want this equipment by the end of the month. Is there any way you can do that?

HG: Oh, that's a bit difficult, but let me think. Well we could manage it, I suppose if we laid on some special road transport ...

HD: Yeah, well, that's probably the only solution. Look, I wonder, when could you get back to me and confirm that?

HG: Well, I'll confirm the details next week, but your request is fair enough. You'll have the equipment by the end of the month - and I think we've got a deal! Let's just summarise it, shall we?

HD: OK, well, first of all, there's the price - .£30,000 deposit, a further £50,000 over six months. And then what we've said about servicing and spares — you'll provide both.

HG: Right.

HD: And er ...

HG:The delivery, special road transport by the end of the month – details to be confirmed.

HD:Yeah. And don't forget the three months warranty.

HG:OK.

HD: Fine. OK, that sounds good.

HG: Good, Helen.

HD: We've got a deal, Hans.

HG: OK, let's go for a drink.

2.Listen to Dialogue I again and decide which of the following statements about it are true:

1. Mullins and Ramsay established a good rapport with each other.

2. Mullins and Ramsay showed each other respect.

3. Mullins and Ramsay both used emphatic language.

4. Mullins had probably worked out his negotiating strategy before the meeting.

5. Mullins offered a creative suggestion to resolve an area of conflict.

6. Ramsay tried to avoid an atmosphere of conflict.

7. Ramsay showed a willingness to compromise.

8. The outcome of the meeting was unsatisfactory for both sides.

3. Listen to Dialogue 2 again and decide which of the following statements about it are true:

1. Dawson and Guertler established some common ground at the beginning of the negotiation.

2. Dawson indicated an area of conflict early in the negotiation.

3. Dawson and Guertler used polite language, showing tact and sensitivity.

4. Guertler made his sticking point clear regarding price.

5. Guertler did not make any concessions.

6. Dawson and Guertler were constructive and co-operative.

7. Dawson and Guertler summed up the main points they had agreed on.

8. The outcome of the negotiation was satisfactory for both sides.

Role-play

Working in pairs, role-play the negotiation between Jerry Mullins and Charles Ramsay from Listening II / Dialogue 1, but this time try to ensure that the outcome is a win-win situation. Prepare for the negotiation carefully, using the hints on negotiating to help you.

Reading III

A Story of Negotiating Starring “Phrasal Verbs”

1. Read the story paying attention to the underlined expressions:

At the beginning of negotiation the other team asked me where I stood onprices. I told them that I had worked outsome figures regarding discounts and quantity. I said that I expected them to come down from $40 per unit to $30. They refused to be pinned down too early on a precise price. They explained that they didn’t wantto rush into anything. I was anxious to build up a relationship so I decided to carry on. I was hoping that we could iron out any difficulties as we went along. However, the negotiation eventually broke down when the other team refused to give in on price and come down to our asking price.

2. Find synonyms from the box to the underlined expressions in the text;

Improve your wordpower

Look at the following idiomatic expressions and try to memorize them. You may use them in your speech in negotiations.

Idioms – strategy

· Keep your cards close to your chest! = Don’t reveal your position.

· Don’t show your hand yet. = Don’t reveal your position.

· Keep something up your sleeve! = Hold bargaining points back for later in

the negotiation.

· Let’s play it by ear. = Listen and improvise accordingly.

· Stick to your guns! = Maintain your position.

IDIOMS – PROGRESS

· We are going round in circles. = Repeat without making progress.

· We both need to give a little ground here. = Make concessions.

· We’re getting bogged down. = Focusing too much on one thing and not

making progress.

· We’ve reached a stalemate. = Arrive at position where progress and

concessions have stopped.

· We broke the deadlock. = Move past a major sticking point.

· We clinched a deal. = Reach agreement.

Speaking

Work in pairs. Make up any negotiation, using phrasal verbs and idiomatic expressions in your speech.

Listening III

You are going to hear parts of a negotiation between Carson Martin, Vice-President of Toronto-based CM Kitchens Inc., and Pieter van Eck from Dutch kitchen equipment specialists, IPEA Holland. Listen and answer the following questions:

1 What are Carson and Pieter negotiating?

2 What agreement do they reach?

Language Practice

Study these phrases from Listening III and choose the most appropriate heading for each group from the list below. Then use each phrase once only to complete thenegotiation transcript. You will need to think carefully about the meaning and the form of the missing language. When you have finished, listen again and check your answers.

· asking for clarification

· rejecting

· interrupting

· bargaining/trading

· making a suggestion

· stating your position

· agreeing

· asking for a reaction

TAPESCRIPT

Carson: ¹…………………………. first on how to organise today's meeting, ⁽¹⁾.....................................?
Pieter: Aha.

Carson.OK, well, ²..................................... starting with the contract itself? Then ³..................................... move on to the product range, sales targets and
discounts. ⁴..................................... for the morning session?

Pieter:That sounds fine. There's plenty to talk about there, for sure. ⁵..................................... start things off?

Carson: ⁶.....................................? Go ahead.

Pieter: OK, well, as you know, we've signed up quite a few overseas agents recently.
⁷..................................... really is exclusivity - ⁸..................................... an exclusive agent can offer us more - more commitment, more motivation and better service. ⁹..................................... build up the relationship gradually, based on trust, and common interests…

Carson: ¹⁰.................................... right there, Pieter. Sorry, but ¹¹.................................... that. An exclusive agreement ¹²...................................... Absolutely impossible.

Pieter: Oh, ¹³.....................................?

Carson: It's just that we're agents for a lot of big manufacturers, European, North American, a couple from the Far East, and we're locked into agreements with them. ¹⁴..................................... we can break them. In any case, ¹⁵................................... - we've always handled competitors' products, it's the way we run our
business.

Pieter: I see.

Carson: Look, exclusivity isn't everything, you know. ¹⁶..................................... look after your firm well ⁽¹⁶⁾.................................... give us the chance – there'll be no lack of commitment on our part. -¹⁷....................................it.

Pieter: Hm, I suppose ¹⁸......................................, erm…

Carson: Yes?

Pieter: . . . if you offered us a realistic sales target for the first year.

Carson:I see. Well, I suppose ¹⁹................................... 'realistic'.

²⁰.................................... exactly?

(Later that morning)

Carson: I want to be clear about this — ²¹.................................... for me?

Pieter: ²².................................... . What I'm saying is that ²³..................................... offer you a non-exclusive contract, ⁽²³⁾.................................... you stock our whole range of products and an agreed quantity of spare parts for each item.

Carson: Right.

Pieter: What I'd like to know now is are you prepared to commit yourself to a figure for sales growth, ²⁴…………………………., over the next three years?

Carson: ²⁵…………………………. .

Pieter: What, not even a rough figure?

Carson: ²⁶………………………….. . It's going to depend on a lot of variables - any figure I give you won't be very accurate.

Pieter: OK, I won't try to pin you down on that. Let's move on to discounts. ²⁷…………………………… 2% on orders up to $200,000, 5% on orders from $200,000-$500,000, and 10% for anything over that. It gives you a strong incentive to exceed your target. ²⁸…………………………..that?

Carson: Well, I’m a bit disappointed, really. ²⁹…………………………… at least 5°/o up to $200,000. It 's the going rate over here - or weren't you aware of that?

Pieter: I'm sorry, I can't improve my offer on discounts. We've worked them out very carefully

Carson: I see. Well, I don't know…

Pieter: How about this? ³⁰…………………………..accept the discount rates, ⁽³⁰⁾…………………………….. help you with your mark-ups. ³¹……………………………… to set some limits, ⁽³¹⁾………………………….you can set your own mark-ups and we won't interfere.

Carson: Hm, yes, that'd be useful. It'd give us plenty of flexibility with our pricing.

Pieter: Exactly. ³²………………………………..?

Carson: Right, OK, ³³…………………………. that.

Pieter: Great, ³⁴……………………….. then. Let’s summarise, shall we?

Role play

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