You're listening to Business English Pod, the Business English podcast for professionals on the move.
This episode will focus on declining an offer and what to do when someone declines.
It is part of an ongoing series on negotiation skills.
Negotiations don't always go according to plan.
Disagreement is part of life, but to build lasting relationships, coping with failure is even more important than celebrating success.
So in this show, we'll examine a deal that does not get completed.
We'll look at making a final offer as well as expressing dissatisfaction and regret.
We'll focus on maintaining goodwill even when talks break down.
Peter is the owner of mobile phone Ringtone and game provider Textacular.
He is in discussions with Maxine about buying her company, Gamester.
But Maxine wants 15 million euros for her business, and Peter isn't prepared to pay that much.
As you listen, pay attention to how Peter makes a final offer, how Maxine declines it and how they both work to maintain goodwill.
Try to answer the following listening questions.
1.
What are Maxine's reasons for staying firm on price?
2.
What does Peter say to justify not being able to pay more?
3.
How does Maxine leave open the possibility for future cooperation?
I've done months of due diligence and I'm convinced of the value of a merger.
I know you are but we need a fair price for our business.
On my side though, we must take into account redundancies in our business operations and factor in the volatility in the market.
As you know, we think the synergies will outweigh all that.
Yes, but we've run the numbers and, depending on how the deal is structured, I can't do better than 115 million.
Well, there's no two ways about it, so that doesn't give us much more to talk about.
Well, I'm really sorry to hear you put it that way.
I was really hoping we would resolve our differences.
Yes, but anyhow, I think we should explore other possibilities for working together.
Absolutely.
I look forward to it.
Although Peter and Maxine disagree, they end the discussion in a cordial or friendly manner.
The possibility remains open for future cooperation.
Let's look closely at the language they use.
The dialogue starts off with Peter giving his reasons for not being able to pay Maxine's price of 15 million euros.
On my side though, we must take into account redundancies in our business operations and factor in the volatility in the market.
As you know, we think the synergies will outweigh all that.
To take into account and to factor in both mean to consider.
Peter says he must take into account redundancies in their business operations.
In other words, areas of repetition or overlap.
Likewise, he must factor in volatility in the market.
Volatility refers to quick or unexpected changes in price and values.
For example, in stock prices or in an industry, high volatility can make it difficult or risky to put a value on a company.
Maxine has a different evaluation from Peter.
However, she believes synergies in their operations will outweigh or be more important than all the factors Peter has mentioned.
To review, synergy refers to a situation in which the whole is greater than the sum of the parts.
In other words, a situation in which 1 plus 1 is greater than 2.
How does Peter reply to Maxine?
He makes his best offer.
Let's listen again.
Yes, but we've run the numbers and, depending on how the deal is structured, I can't do better than 115 million.
Peter has run the numbers or analyzed the financial information.
Depending on how the deal is structured, which refers to credit terms, payment period and so on, he can't do better than 115 million euros.
That is his final offer.
Listen to some other example phrases for making a final offer.
That's already just about as far as we can move on this issue.
We've already made many concessions so we need to hold firm at this point.
If we bend any further we just won't be making any money on this deal.
The only way we're going to reach agreement is by taking a win-win approach.
That's our final offer.
Maxine has also reached a point where she cannot make any more concessions.
She makes this clear by expressing her dissatisfaction with Peter's offer.
There's no two ways about it means there's no other way to look at it, no way forward.
Sometimes it's important to express that we are not satisfied with a proposal.
In some situations, being clear about your feelings may actually help overcome blockage.
What are some other ways to express dissatisfaction?
Unless your side takes a different approach, at this point I just don't see any clear way forward.
Face it, we're wasting our time.
Frankly, we're not satisfied with the offer on the table.
We seem to have reached an impasse.
That figure is just too rich for our blood.
To reach an impasse means to encounter an obstacle or blockage.
To be too rich for someone's blood means to be too expensive for someone.
Next in the dialogue, Peter replies by expressing regret that he and Maxine were unable to reach agreement.
Well, I'm really sorry to hear you put it that way.
I was really hoping we would resolve our differences.
Though he and Maxine have a difference of opinion, Peter is careful to maintain goodwill.
He avoids getting angry or accusing her, and he leaves Maxine some room to change her mind.
His statement that he is sorry to hear her put it that way leaves open the possibility that she may put it another way another time.
Peter's expression of regret helps diffuse or relax the situation.
Then he ends on a positive note.
He says, Can you think of other language for expressing regret?
Listen to some examples.
I'm sorry to hear that you feel that way.
It's too bad that we see things differently on this issue.
Well, obviously this is frustrating for both sides.
Maxine ends the conversation politely to leave the door open for further discussions.
Yes, but anyhow, I think we should explore other possibilities for working together.
Absolutely.
I look forward to it.
Of course, even when we're feeling frustrated, it's usually wise to keep the possibility open for future negotiation.
Let's examine some similar phrases that can create goodwill when we've reached an impasse.
Obviously, though, there are other areas where we'll be able to work together.
I would still like to emphasize how much we appreciate our partnership.
Despite our differences of opinion, we are committed to a long term partnership.
Your support means a lot to us.
Now, let's practice some of what we've learned.
First, imagine you are negotiating with a client.
Your talks have encountered an obstacle.
First, based on the cue, make a final offer.
Then, the customer will express dissatisfaction.
Finally, you should reply by expressing regret.
For example, if you hear, Example Q. Hold firm on this point.
You can say something like, That's the best we can do.
We need to hold firm on this point.
Then the client will reply with dissatisfaction, for example, Well, face it.
We're wasting our time.
And you can respond by saying something like this, I'm really sorry to hear that you feel that way.
Are you ready?
Let's give it a try.
Cannot bend further.
That's just too rich for our blood.
We seem to be wasting our time.
How did that go?
Let's listen to an example answer.
Bear in mind, though, there are many possible correct responses.
That's our final offer.
If we bend any further, we won't be making any money.
That's just too rich for our blood.
We seem to be wasting our time.
I'm sorry to hear you put it that way.
Now, let's try it again.
Well, unless your side takes a different approach, at this point I just don't see any clear way forward.
Great.
Now listen to the example answer.
Already as far as we can move.
We've already made many concessions.
That's already as far as we can move on this point.
Well, unless your side takes a different approach, at this point I just don't see any clear way forward.
Well, it's too bad that we see things differently on this issue.
Okay, now let's practice useful collocations.
You'll hear a series of sentences with a word blanked out or replaced with a beep.
Repeat the whole sentence, but say the missing word.
For example, if you hear We ran the And we think their stock price is way overvalued.
You will say We ran the numbers and we think their stock price is way overvalued.
We'll play an example answer after each exercise.
Are you ready?
Let's begin.
That's way too... for my blood.
Answer.
That's way too rich for my blood.
We've reached an because we can't agree on price.
Answer.
We've reached an impasse because we can't agree on price.
There's no to about it.
We're just going to have to accept the deal.
Answer.
There's no two ways about it.
We're just going to have to accept the deal.
At this point, our need for cash... The risk of taking out a loan.
Answer.
At this point...
Our need for cash outweighs the risk of taking out a loan.
We should in the price of oil in our business plan.
Answer.
We should factor in the price of oil in our business plan.
Hi.
Answer.
That's all for this episode.
We've looked at making and declining a final offer, expressing dissatisfaction and regret and leaving the possibility open for further cooperation by maintaining goodwill.
We've focused on building good relationships even when things don't go according to plan.
Thanks for listening.
See you next time.
