手机版
二维码
Business Negotiation
A The seller: Miss Li representing Huaxin Trading Company Limited
B The buyer: Mr. Huang representing James Brown & Sons
A: Good morning, Mr. Huang. Glad to meet you.
B: Good morning, Miss Li. Glad to meet you, too. It is my first time to visit Shanghai. Shanghai has been known to me as an interaction port city before I came here.
A: We always take attention to establish business relations with the new clients in other countries. I wish we will have a good time this morning.
B: I come here to visit you hoping to have a discussion with you on the purchase of your HX Series chinaware.
A: Which Art. No. are you interested in?
B: HX1115 and HX1128.
A: Which price terms do you prefer, FOB, CFR, or CIF?
B: CIF.
A: The price of HX1115 is USD 24.19 per set CIF Toronto. The price of HX1128 is USD 14.93 per set CIF Toronto. It is understood that the above prices are net, without any commission.
B: I am afraid it goes against the usual commercial practice not to allow a commission.
A: We are prepared to grant you a 5% commission. 442 sets of HX1115 at the price of USD 24.68 per set CIFC5 Toronto; 338 sets of HX1128 at the price of USD 15.23 per set CIFC5 Toronto.
B: I’m afraid your prices appear unworkable.
A: I am assuring you that our prices are most favorable. A trial sale will unvoiced you of my words.
B: Unless the prices could match with the market level, it is difficult to persuade customers to purchase with you. In order to conclude the transaction, I think you should reduce your price to USD 23.00 per set of HX1115. Will you consider cutting down your price to USD 14.20 per set of HX1128.
A: As the raw material has advanced by 10% during the last few months and the prices are going up, owing to the rise in the cost of raw materials. We can’t accept this prices.
B: I think it unwise for both of us to insist on his own prices. Can we each make some concession, say, the price of HX1115 is USD 23.50 per set CIFC5 Toronto; the price of HX1128 is USD 14.50 CIFC5 Toronto?
A: If we accept your prices, we will not leave a little of margin of profit.
B: I am afraid we have to call the whole deal off if you still insist on your original quotation.
A: Well for friendship’s sake, we are prepared to make a 5% reduction if your order is big enough. Our minimum quantity is a 20’ container for each article.
B: Our quantities are 542 sets of HX1115 and 438 sets of HX1128.
A: OK.
B: Shall we have a talk about terms of payment now?
A: Our usual payment terms are by confirmed, irrevocable L/C payable by sight draft against presentation of shipping documents and to reach us 30 days before the month of shipment.
B: To open an L/C will cause us a great deal of difficult. It’s expensive to open an L/C and ties up the capital of a company like ours. So it’s better for us to adopt D/P or D/A.
A: L/C at sight is our usual payment terms.
B: It is better for us to adopt D/P at sight than L/C at sight.
A: We have never granted D/P terms to any new clients. So we hope you can accept the L/C terms. After several smooth transactions, we can try other terms.
B: We can’t help it if you insist requiring payment by L/C at sight. By the way, what cover will you take out?
A: The insurance is to be covered by us for 110% of invoice value against WPA Clash & Breakage and War Risks as per the Ocean Marine Cargo Clauses of PICC (1981.1.1).
B: All right. How would you pack the goods?
A: HX1115 is to be packed in cartons of one set each. HX1128 is to be packed in cases of one set each, two cases to a carton.
B: I hope the packing will be attractive. Nice packing helps find a market. Please give special attention to the packing or the goods could be damaged in transit.
A: All right.
B: When is shipment to be made?
A: Shipment is to be made before or on April 30, 1998.
B: We have to point out that the goods are not allowing partial shipment.
A: OK. By the way, what are the Ports of Shipment & Destination?
B: Shanghai and Toronto.
A: I’m glad we have brought this transaction to a successful conclusion and hope this will be the forerunner of other business in the future.
B: All right. I accept your offer of 542 sets of HX1115 at the price of USD 23.50 per set, and 438 sets of HX1128 at the price of USD 14.50 per set. Shipment is to be made no later than April 30, 1998 after receipt of L/C and not allowing partial shipment. The Ports of Shipment & Destination are from Shanghai to Toronto. HX1115 is to be packed in cartons of one set each and HX1128 is to be packed in cases of one set each, two cases to a carton. The payment terms are by L/C at sight. Insurance is to be covered by you for 110% of invoice value against WPA Clash & Breakage and War Risks as per the Ocean Marine Cargo Clauses of PICC (1981.1.1).
A: That’s right. I will get the Sales Confirmation ready tomorrow for your signature. Would it be convenient for you to come again tomorrow morning?
B: OK. We expect to find a good market for your goods and hope to place further and large orders with you in the near future. See you tomorrow morning.
A: See you.
