In business negotiations, people can be unreasonable. Sometimes, one side/party can be very aggressive and try to force the other side/party to accept an offer which isn't beneficial for them. In other situations, one side/party will refuse to make any concessions on an offer they have made.
Normally, there are two outcomes when this happens:
In either outcomes, it will probably damage the relationship between the two people involved and even the two companies. Which is not ideal for the future.
So what can you do if you are negotitaing with somebody who isn't willing to compromise? Get angry and/or give up?
There are ways in which you (whether you are the buyer or the seller) can deal with or control these situations to prevent negotiations breaking down, turning into an argument or having to accept a deal which is bad for you. It all depends on what you say and what you are prepared to do.
In this online exercise on negotiations, we will both look at and I will explain the purpose of certain phrases in English which are used in business negotiations to deal with unreasonable demands/offers and behaviour. Some of these phrases can be used by buyers in a negotiation and others by sellers.
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 convincing people to buy.
Click here to see more of our free online exercises on business negotiation vocabulary
Read the following two business negotiations where one side/party is being unreasonable in its demands or behaviour. In the first, the re-negotiation is for a service contract for IT support. In the second, the negotiation is for a contract for television components.
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:'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.'
Buyer:'Yes.'
Seller:'Would you excuse us for a moment?'
Buyer:'No problem.'
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?'
Buyer:'Yes.'
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.'
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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