Seller:'For a 2 year extension to the current service contract, the price will be $5 million.'
Buyer:'It's a lot higher than what we paid for the current contract.'
Seller:'To be honest, we've made a lost on the current contract with you. We've looked at the numbers and we can't lower it.'
Buyer:'Let me just make sure I know what you're saying, for exactly the same contract as we have now, we'll have to pay $1.5 million more.'
Seller:'As I said before, we've lost money on the existing contract we have with you. Plus, consider how much time and money it will cost you to change to a new service provider, at least $2 million and hundreds of hours of training and business downtime.'
Buyer:'I don't think that I'll be able to sell this back at head office.'
Seller:'As I said, to set up with a new provider will cost you more with higher risk.'
Buyer:'What would you do in our position if you had to pay 30% more to extend an existing contract?'
Seller:'I appreciate how you feel. It does seem a lot, but it'll cost you more if you change.'
Buyer:'What do you think will happen if we don't agree?'
Seller:'I suppose that you'll decide to give the contract to someone else.'
Buyer:'So, would you prefer to lose the contract or make a concession?'
Seller:'Of course, we don't want to lose the contract, but we feel we've made you a very reasonable offer.'
Buyer:'So you won't consider making a concession on price?'
Seller:'I'm afraid it's the lowest price we can offer you.'
Buyer:'Well, if that's your position, I'm afraid there's nothing else we can do! I think it's better if we finish the meeting now. If you reconsider your position, get in touch with me.'
Buyer:'From our perspective, $4.35 per component is too much. We're not willing to pay more than $3.00 per component.'
Seller:'So, if I understand you correctly, you're looking for $3.00 per unit for an order of 40,000 per month.'
Seller:'Would you excuse us for a moment?'
10 minutes later
Seller:'Your offer is very low. For that price we would make a loss on each component we sold you. It wouldn't make any sense for us to agree to a contract with these terms.'
Buyer:'We have found two suppliers who are willing to offer that price.'
Seller:'But will they provide the same quality of product and guarantee of service and delivery?'
Seller:'What if we offered you each component at $4.15 on condition that you increased your order to 50.000 per month?'
Buyer:'I appreciate the offer, but we're only prepared to pay $3. You do know that prices of televisions fell by 15% last year. We need to cut costs I'm afraid. So, are you willing to accept our offer?'
Seller:'I understand what you're saying, but we simply couldn't do it. It would ruin us. How do you suggest we proceed?'
Buyer:'I appreciate how you see it and I would like to make a compromise, but we have to save money somewhere!'
Seller:'I think it's best if we have a few days to think about it.'