You're listening to Business English Podcast for professionals on the move.
In this episode, we'll study the skills and language of bargaining.
This show is part of a larger series on negotiation skills.
Bargaining is the process of swapping or trading concessions.
In other words, you give me something and I'll give you something in return.
This is also called making offers and counter offers.
The goal is to reach a compromise, a result in which both sides get benefit.
Today's listening focuses on a typical bargaining situation.
Paul is a purchasing manager for a construction company.
Tony is a supplier of anchor bolts, large metal screws used in building projects.
They are in the middle of a telephone conversation in which they are negotiating an order.
Tony has already opened the discussion and clarified Paul's basic needs.
Now they need to agree on the quantity and price.
As you listen, focus on the language that they use to swap concessions and reach a deal.
Also, try to answer the following questions.
The answers will be posted in a few days on our website at www.businessenglishpod.com.
Throwing more business Tony's way.
2.
Tony suggests a way of helping Paul get a higher discount.
What is it?
3.
When Tony says to Paul, you drive a hard bargain, what does he mean?
Yes, well, what kind of discount could you give us on a large order?
That depends.
How many are we talking about?
For this particular bolt, on this project, something in the ballpark of 8,500.
Okay.
And we have another similar project coming up.
So if the price is right and the bolts are good, we'll probably be throwing some more business your way.
I understand.
If you order over 10,000, I can give you an 8% discount off the list price.
I see.
And what kind of discount can we get on 8,500?
Probably only around 3, but we can toss in another 2 discount if you pay within one week of delivery.
Actually, I was hoping for a little more help from you.
We are evaluating some other suppliers.
Yes, competition is fierce and our margins are already very tight.
Why don't you consider combining your purchases for the two projects?
Then we can discuss a bigger discount.
We're not sure of the specifications yet.
But what if we sign a letter of intent to use you as a supplier for that project too?
Could you consider giving us an 8% discount then?
Yes, that might be possible.
I'd have to check with the head office.
And with the 2 discount for the prompt payment, we're talking about 10 off your list price for 8500.
You drive a hard bargain.
We've got an excellent reputation, and we're expanding rapidly.
I'm sure we'll be giving you more business in the future.
Well, let me check and call you right back.
Okay, sounds good.
After having traded concessions, Tony and Paul are nearing agreement.
Let's study the language they use.
To begin with, Paul asks Tony about discounts for large orders.
Paul says he wants something in the ballpark of $8,500.
This is vague or indefinite language.
It means approximately 8,500.
Paul is being vague to give himself room to adjust the number upwards or downwards later.
Next, Paul employs another negotiating strategy.
What is it?
Listen again.
And we have another similar project coming up.
So if the price is right and the bolts are good, we'll probably be throwing some more business your way.
To throw more business someone's way means to give someone more business.
Paul is saying he will use Tony's company for future projects, so it will be worth it to Tony to give him a low price now.
Emphasising possibilities for further cooperation is an important technique for getting a better deal.
What are some other phrases we can use for this purpose?
After we get you on our approved supplier list, we should be able to give you consistent business.
We're definitely in the hunt for a long-term partner.
How does Tony respond to Paul's promise of future business?
I understand.
If you order over 10,000, I can give you an 8% discount off the list price.
I see.
And what kind of discount can we get on 8,500?
Probably only around 3, but we can toss in another 2 discount if you pay within one week of delivery.
List price is the catalogue or standard price.
Toss in means to add or include.
This passage represents the heart of the bargaining process.
We see Tony using conditional phrases or if sentences to swap concessions.
If you give me this, I can give you that.
If Paul orders more than $10,000, Tony can give him an 8% discount.
If Paul pays within one week of delivery, he can toss in or include an extra 2% discount.
For more practice, let's review further examples of trading concessions.
If I agreed to stagger the payments, would you find that more acceptable?
Would it help if we offered to install the equipment for free?
Give us a better discount and we'll make a larger order.
We can toss in free delivery if you are willing to accept a later shipment.
How does the dialogue continue?
As the buyer, Paul is naturally in a stronger position.
He uses this leverage or strength to put pressure on Tony.
That is, he tries to force Tony to improve the offer.
Hmm.
Actually, I was hoping for a little more help from you.
First, Paul signals for movement.
That is, he indicates he wants a better deal.
He says he was hoping for a little more help, by which he means, of course, a bigger discount.
What other language can we use to signal for movement?
That seems rather high.
Don't you think that's a little low?
Can you go a little lower?
Next, Paul turns on or increases the pressure.
Reminding someone of the competition is a standard way to pressure them into giving us a better bargain.
What are some other ways to turn the pressure on?
First, let's consider a more positive approach.
To reach agreement, we're going to have to see a little movement on price.
Your lowering the price by just 2% would enable us to seriously consider the offer.
Pay attention to the positive emphasis in these examples.
Instead of focusing on what we can't do if the other side doesn't compromise, we frame our thoughts in positive terms.
What can we do to reach agreement?
How can the other party enable us to consider the offer seriously?
Of course, it's not always possible to take a positive approach.
Sometimes we need to be very clear that an offer is unacceptable.
We can't really accept these conditions.
Honestly, we were hoping for better terms.
I'm really doubtful whether I can get the other members of my team to agree to this.
Back in the dialogue, how does Tony respond to Paul's attempt to use pressure on him?
He stays very calm, doesn't he?
Yes, competition is fierce and our margins are already very tight.
Tony agrees that there are a lot of other suppliers.
As he puts it, competition is fierce, that is intense.
But this also means that his margins are already very tight or small.
By margins, he is referring to profit margins, the amount of profit he makes on a deal.
In other words, his competition has squeezed or tightened his margins and He can't make any money if he offers a high discount.
Tony, therefore, has an idea.
Why don't you consider combining your purchases for the two projects?
Then we can discuss a bigger discount.
Then we can...
Suggesting alternatives and their benefits is a good way to move discussions forward.
Let's look at some more examples.
Have you considered ordering earlier?
Then you could save on shipping.
What if we get a third party to check the quality?
That way we can avoid any further problems.
Is Paul prepared to combine his orders for the current and future projects, as Tony suggests?
Not right away, because he isn't yet sure about the specifications or exact details of the future project.
But he does have an idea.
He proposes signing a letter of intent, which is a preliminary agreement that states the terms for a future final contract.
So Paul's proposal is basically to promise or pledge that he will use Tony for the later shipment as well.
In this way, his total pledged order will go over 10000 bolts, which will enable him to receive the 8 discount.
Let's listen again to Tony's reaction.
Yes, that might be possible.
I'd have to check with the head office.
Tony reacts with a cautious or a careful yes.
He says, that might be possible.
How else can we respond to a proposal in addition to a cautious yes?
Other possible reactions include a strong yes, strong no, and a soft no.
First, let's look at more language for a cautious yes.
That could be a way forward.
Well, that might be possible, but we need something in return.
Now let's study some more phrases we can use when we totally agree to a suggestion.
In other words, when we'd like to say a strong yes.
OK, we can agree to that.
That sounds fine.
That's acceptable.
Of course, we're not always able to agree to an offer.
What if we have to say no?
There are both strong and soft ways to say no.
Let's first study a strong no.
I must say no and I'll give you my reasons.
I'm sorry, that's just out of the question.
My hands are tied.
I have to say no.
To have one's hands tied means to not have any choice.
These are very direct ways of saying no.
How can we moderate or tone down the language to make a softer no?
Listen.
That would probably be a little bit tough for us.
I'm afraid that might be hard to do.
That could be a bit of a stretch.
To be a bit of a stretch means to be hard to agree to.
In both the cautious yes and soft no reactions.
Note that we use past modals would could might to tone down or soften the tone.
What happens next in the dialogue?
Having received a cautious agreement from Tony, Paul summarises the deal.
And with the 2 discount for the prompt payment, we're talking about 10 off your list price for 8500.
You drive a hard bargain.
To drive a hard bargain means to be a tough negotiator.
Tony is praising Paul's negotiation skills and perhaps signalling to Paul that he is getting a good deal.
How does the discussion finish?
First, Paul again emphasises possibilities for future cooperation.
His company is expanding rapidly, so he's sure he'll be giving Tony more business in the future.
Then Tony buys a little time.
That is, he delays making a final agreement.
Well, let me check and call you right back.
Okay, sounds good.
By buying time, Tony is controlling the pace or speed of talks.
Managing the timing is often very important to achieving a good outcome.
Before we finish today, let's review more expressions that we can use to buy time.
I'll need to check a few details.
I'd like to consult with my colleagues before committing to this point.
Why don't we come back to that point again after we've discussed payment terms?
Now it's your turn to practice.
First, let's practice reacting to offers.
In the cues, you'll hear a series of different reactions.
After the beep, repeat the reaction, but change the tone.
That is, if you hear a soft yes, change it to a strong yes.
And if you hear a strong no, turn it into a soft no, and so on.
For example, If the cue is... That's acceptable.
This is a strong yes, so we should change it into a soft yes.
You can say something like... Okay, that might be acceptable.
Are you ready?
Let's give it a try.
Strong no.
My hands are tied.
I have to say no.
Now respond with a soft no.
Strong yes.
That sounds fine.
Now respond with a soft yes.
Soft no.
I'm afraid that might be hard to do.
Now respond with a strong no.
That could be a way forward.
Now respond with a strong yes.
Strong no.
I'm sorry.
That's just out of the question.
Now respond with a soft no.
Now listen to some example answers.
Of course, there are many possible correct responses.
My hands are tied.
I have to say no.
Example answer.
I'm afraid that might be a bit of a stretch.
That sounds fine.
Example answer.
That might be alright.
I'm afraid that might be hard to do.
Example answer.
I have to say no, and I'll give you my reasons.
That could be a way forward.
Example answer.
Okay, we can agree to that.
I'm sorry, that's just out of the question.
Example answer.
That would probably be a bit tough for us.
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... You will say... We'll play an example answer after each exercise.
Are you ready?
Let's begin.
We'll probably be some more business your way.
Answer.
We'll probably be throwing some more business your way.
Sorry.
Our are tied.
Answer.
Sorry, our hands are tied.
Honestly, we were... For better terms.
Answer.
Honestly, we were hoping for better terms.
I'd like to... with my colleagues before committing?
Answer.
I'd like to consult with my colleagues before committing.
You.
A hard bargain.
Answer.
You drive a hard bargain.
That's all for this episode on bargaining.
We've studied emphasising possibilities for cooperation, trading concessions and signalling for movement.
In addition, we've looked at different approaches to turning on the pressure suggesting alternatives and their benefits, reacting to a proposal and buying time.
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