Seller:'So, we can offer you 40,000 components at a unit cost of $4.35 per unit.'
Buyer:'$4.35 per unit. Hmm.'
Seller:'You don't seem entirely pleased. Could I ask you what the issue is?'
Buyer:'We weren't expecting the price to be so high.'
Seller:'It's an extremely competitive price for the quality of the component that you'll be getting.'
Buyer:'As you are aware, we've had a number of different offers and in comparison with those, the price that you're offering us is a lot higher.'
Seller:'I can understand why you're looking around other companies for offers. I do the same. I recently concluded a negotiation for microcircuits. I visited so many different suppliers. It's a very time-consuming process. At times it feels like it'll never end.'
Buyer:'Yeah. I've been very busy with negotiating for this order for the last couple of weeks. This is the third meeting this week that I've had with a supplier about it. It's tiring.'
Seller:'I can appreciate how you feel.'
Buyer:'It's what we're paid for.'
Seller:'True. Let's have a break.'
5 minutes later
Seller:'Although you see the price is high, what I'd like you to consider is the quality of the product that you're obtaining. This component is not only the best built and most reliable on the market, it's also the most innovative and advanced. In fact, it won first prize at this year's Berlin TV component fair. So, what this gives you is the confidence that this component in two years time will still be at the cutting edge. Unfortunately, with some of the components on the market from other manufacturers, in six months they'll be obsolete.'
Buyer:'It's something that we have taken into consideration, but the price you're asking is very high.'
Seller:'Let's put the question of money to one side for the moment. You know that our company has one of the best reputations in the industry for not only the quality of the product and innovation, but also the quality control system in our factories. We have the lowest rate of returns of any company in the sector. So you know what you're getting, a cutting edge quality product with a negligible risk of failure.'
Buyer:'The quality and innovation of the product is not in doubt. But the price is higher than we're willing to pay.'
Seller:'I understand that you see the price as a little high, and I'm sure that you've been offered less. But how much do you spend each year replacing faulty components? What would you say if we guaranteed each of the components not for the standard 3 years but for 5 years. Plus, if one of your televisions breaks down due to a failure of one of our components, we'll not only replace the component for free, but also cover your labour costs of repair.'
Buyer:'So, if I understand correctly, you offering a 5 year guarantee and you'll pay for all labour costs where one of your components has caused a television to break down?'
Seller:'Don't give me an answer straight away. Think about it and get back to me.'