You're listening to Business English Pod, the Business English podcast for professionals on the move.
This is part of an ongoing series on negotiations.
In this episode we'll study how to open a traditional commercial negotiation between buyers and sellers.
We'll focus on creating goodwill, starting off, setting ground rules, suggesting an agenda and exploring possibilities.
We'll be listening to a telephone conversation between Tony, a supplier of building materials, and Paul, a purchasing manager for a large construction company.
Paul is buying materials for a harbour project.
A harbour is a protected area of water where boats dock or park.
For this project, Paul needs to buy anchor bolts.
These bolts are the thick steel screws that are embedded or buried in concrete to support or anchor structural steel columns.
Structural columns refer to the steel frameworks that hold buildings up.
This is the first time Tony and Paul have talked on the phone.
As you listen...
Pay attention to the language they use to get the negotiation started and try to answer the following questions.
The answers will be posted in a few days on our website at wwwbusinessenglishpodcom.
Listening Questions 1
How does Tony begin the phone call to establish goodwill?
2.
How long does Paul say he has available for the phone call?
Paul asks Tony how he will be using the bolts.
How does Tony respond?
What other option does Paul want to explore with Tony?
First of all, let me thank you for your time, Paul.
Not at all.
Thanks for calling.
So, I understand that you're interested in buying some anchor bolts.
That's right.
We're working on a harbor project, so we need stainless.
I thought we could start by discussing your needs in more detail, then go on to details of price, delivery and so on.
Fine by me.
Personally, I've only got about half an hour available.
Should be plenty.
Okay.
Okay.
So, if I understand correctly, you were looking for standard 7 eighths of an inch high strength anchor bolts 105 KSI.
Yes, grade 105 on this project.
Could you tell us more about how you will be using them?
In structural steel columns, I assume?
That's right.
Well, there's another option you might want to explore.
Have you considered resin coated?
Hmm.
We thought about that, but we're using treated rebar, so we're just going to stick with the same material for the bolts.
Okay.
Well, you've seen our price list.
How many are you considering ordering?
Yes, well, what kind of discount could you give us on a large order?
That depends.
How many are we talking about?
Tony and Paul have started off the negotiation successfully and are now ready to proceed to the bargaining stage.
Let's examine the language they've used to begin their discussions.
To start off, Tony, the supplier, demonstrates goodwill to Paul by thanking him for his time.
First of all, let me thank you for your time, Paul.
Not at all.
Thanks for calling.
What are some other phrases we can use to establish goodwill at the beginning of a negotiation?
I feel sure that you share our desire to find a solution.
We are committed to being your partner in developing long-term mutual value.
We are dedicated to building a lasting relationship.
We really look forward to working with you.
Next, Tony starts off the discussion by introducing his reason for calling.
Let's take a closer look at how he does this.
So, I understand that you're interested in buying some anchor bolts.
That's right.
We're working on a harbour project, so we need stainless.
So I understand is a great way to turn the topic to business.
So signals that you are changing the topic.
Here, I understand means I have heard or I have learnt.
What does Paul mean by stainless?
This refers to stainless steel, which is steel mixed or treated with a chemical element chromium, to keep it from rusting or turning red when it is exposed to air and water.
Because Paul's construction project is in a harbour.
The buildings are surrounded by water and probably salt.
So it's important that the anchor bolts resist rust to last a long time.
I understand is a way of starting off.
Let's listen to some more language that is useful for this purpose.
First of all, let me give you some background on our proposal.
We understand that you are looking for a solution to this problem.
After Tony has started off the discussion, how does he continue?
I thought we could start by discussing your needs in more detail, then go on to details of price, delivery and so on.
Here Tony suggests an agenda for the meeting.
To be polite, he uses the past tense.
I thought we could start.
In other words, he was thinking this was a good idea for the agenda.
But if Paul has another idea, that's okay.
Recommending an agenda makes discussions more efficient.
What are some other ways to do this?
We have three main issues we'd like to discuss with you today.
I was thinking we could start by discussing the details of the order, then moving on to the price.
Does Paul agree to Tony's agenda?
Yes, but he has a suggestion of his own.
Fine by me.
Personally, I've only got about half an hour available.
Should be plenty.
Okay.
Fine by me. expresses agreement with Tony's agenda.
But Paul wants to be clear to Tony that his time is limited.
He only has a half hour or 30 minutes.
To be polite, he uses personally.
Personally, I've only got a half hour available.
This means speaking for myself.
I have only 30 minutes, but I understand your time may be limited as well.
Mentioning time limits is part of setting ground rules, that is creating guidelines for the talks.
What are some other ground rules that we may need to set?
Before we go on, could we agree on procedure?
Why don't we break for an hour after lunch?
Please feel free to interrupt me at any time if you have any questions.
What happens next?
Tony takes the important step of clarifying Paul's needs.
So, if I understand correctly, you were looking for standard 7 eighths of an inch high-strength anchor bolts 105 KSI.
Yes, grade 105 on this project.
From their previous emails, Tony knows Paul's requirements, but he clarifies them here to confirm.
To do this, he uses the expression, so if I understand correctly, what exactly does Paul need?
7 eighths of an inch refers to the diameter or width of the bolt.
KSI is a unit of measurement.
It stands for kilopounds or 1,000 pounds per square inch.
This is used to measure the strength of materials, for example, how much weight they can bear before breaking.
Bolts that can take 105 ksi are referred to as grade 105.
Clarifying is an extremely important part of negotiation.
Before we go on, let's review some more useful expressions.
What exactly did you mean by that?
If I understand correctly, you're saying that production costs will be much higher than expected.
Right.
So I think that what you're saying is you are not prepared to offer a higher discount unless we increase our order.
Is that right?
Can you perhaps go into a little more detail on that?
Before we discuss this point, I'd like to be sure about your position on exclusivity.
In the last example phrase, exclusivity refers to the right to be the only agent or seller of an item in a market.
This is sometimes called having exclusive rights.
After clarifying the basic order, Tony now questions Paul in more detail.
Could you tell us more about how you will be using them?
In structural steel columns, I assume?
That's right.
Asking deeper questions to get more information is called probing.
This is another fundamental skill of negotiations.
Understanding the other party enables us to find better ways to create value.
As mentioned in the introduction, structural steel columns are steel frameworks embedded or buried in concrete.
Their purpose is to strengthen buildings.
Tony's phrase...
Could you tell us more is one useful way of probing.
What are some other expressions?
Could you go into more detail about your standard delivery terms?
What kind of special offers do you have?
Wouldn't it be possible to ship the goods through South Africa?
Have you got an example of this?
I can't see how your position ties up with the rising raw material prices.
How do Tony and Paul continue?
Tony uses the information he has collected to suggest another possibility to Paul.
Tony wants to know whether or not Paul has considered using resin-coated bolts instead of stainless.
Resin is a clear coating or layer that protects the steel.
Tony says...
There's another option you might want to explore.
Exploring different possibilities for creating value is another key negotiation skill.
Here are some more phrases that can help us do this.
There are a number of ways to look at this.
I think there are a number of possibilities we'd suggest looking at.
I'm sure we can find some common ground.
Does Paul agree to Tony's proposal to use resin-coated bolts?
No.
He says they are already using treated or a stainless rebar, so they want to stick with or continue using the same material for the bolts.
Rebar means reinforcing bar.
Rebar forms the framework within structural steel columns.
And anchor bolts connect and support the framework.
What happens next?
Okay.
Well, you've seen our price list.
How many are you considering ordering?
Yes, well, what kind of discount could you give us on a large order?
That depends.
How many are we talking about?
Here Tony and Paul begin the bargaining process, which will be handled in more detail in another episode.
But let's look at how they begin.
Notice how both Paul and Tony are careful not to make the first move.
Neither one wants to offer too much or too little without knowing more about the other side's position, so they both attempt to put off or postpone talking in detail.
After Tony asks Paul how many bolts he wants to order, Paul asks What kind of discount could you give us on a large order?
This is a standard way to probe about a possible price reduction.
Tony's reply, that depends, is vague or indefinite.
He doesn't commit to any specific number.
Thus we can say he is being non-committal.
Such vague language is an important negotiation skill, especially at the beginning of talks.
Here are some more examples.
Hmm, I'd need to think about that.
That could be a possibility.
That might be worth trying.
That depends.
Can you tell me more?
That's all for the dialogue.
We've reviewed the language Paul and Tony used to start off the negotiation.
Now, it's your turn to practice.
First, let's go over probing questions.
Imagine you are negotiating with a vendor.
You will hear a series of cues telling you the areas to probe.
After each beep, use the cue to make a question.
For example, if you hear You can say Other useful expressions include And Wouldn't it be possible to?
After each exercise we will play an example answer, but bear in mind there are many possible correct responses.
Are you ready?
Let's give it a try.
Q. Special offers.
Answer.
Could you tell us more about any special offers you have?
Q. Discount on a large order.
Answer.
What kind of discount can we get on a large order?
Q Exclusive rights in this market.
Answer would it be possible to negotiate exclusive rights in this market?
Now you'll hear a series of sentences with a verb blanked out or replaced with a beep.
Repeat the whole sentence, but say the missing word, for example, if you hear.
What exactly do you By that?
You will say, What exactly do you mean by that?
After each response, we'll play the correct answer.
First of all, let me give you some on our proposal.
Answer First of all, let me give you some background on our proposal.
Before we go on, could we... on procedure... Answer.
Before we go on, could we agree on procedure...
There are a of ways to look at this.
Answer.
There are a number of ways to look at this.
We have three main issues we'd like to with you today.
Answer.
We have three main issues we'd like to discuss with you today.
We are dedicated to a lasting relationship.
Answer.
We are dedicated to building a lasting relationship.
Well, that... Can you tell me more?
Well, that depends.
Can you tell me more?
That's all for this episode on getting a negotiation started, which is part of a longer series on negotiation skills.
In this show we've studied creating goodwill, suggesting an agenda, setting ground rules clarifying probing, exploring possibilities and being non-committal.
Remember, you can sign up for our Learning Centre to get access to a wide range of transcripts, quizzes and listening activities.
All that's at www.businessenglishpod.com Thanks for listening.
See you next time.
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