Often in negotiations you'll face a situation where the other side/party don't believe that an offer that you have made is beneficial for them. Maybe they think that the price is too high or it doesn't include something which they believe is important.
It can be tempting to reduce the price. But there is another way. And that is to convince them of the benefits and positive aspects of both your offer and selecting the products or services from your company. To do this, you need to be subtle, connect with them on a personal level and show empathy for their position.
In this online exercise on negotiations, we will both look at and I will explain the purpose of subtle and persuasive phrases in English which a seller can use in a business negotiation to convince/persuade the buyer to select their offer/company.
After you have done this exercise, you can also improve your knowledge of both strategies and vocabulary to use in our online exercises for other negotiation situations. These include delaying in neogiations or making a deal in neogiations or dealing with unreasonable demands in negotiations.
Click here to see more of our free online exercises on business negotiation vocabulary
Read the following business negotiation between a seller and potential buyer for a contract to supply television components to a television manufacturer. The buyer is negotiating for a better price.
From the context, try to guess what the meaning of the words/phrases in bold are. Then do the quiz at the end to check if you are right.
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 would do the same. I recently concluded a negotiation for microcircuits and I was in your position. 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:'Yes.'
Buyer:'Hmm.'
Seller:'Don't give me an answer straight away. Think about it and get back to me.'
Below is a definition/description of each of the words/phrases in bold from the above text. Now choose the word/phrase from the question's selection box which you believe answers each question. Only use one word/phrase once. Click on the "Check" button at the bottom of the quiz to check your answers.
When the answer is correct, two icons will appear next to the answer. The icon contains extra information on the word/phrase. In the
icon, you can listen to the pronunciation of the word/phrase.
Now that you understand the meaning of the words/phrases and when to use them, practise using them by creating your own sentences with them in English. Also click on the icon next to each correct answer and listen how each is pronounced correctly.
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