negotiations_ebook.pdf

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Successful Negotiations A multimedia business English study guide to negotiating effectively in English

Written by James Moss Audio produced & recorded by Paul Meredith Online activities by James Moss & Mario Dubielzig

Copyright 2009 Business English Pod Ltd. All rights reserved. No part of this book may be used or reproduced without written permission, except in the case of brief quotations embodied in critical articles or reviews. Published 2009

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Successful Negotiations Table of Contents (Click a unit title to jump to the start of that unit) 1.

Introduction

pg 4-5

2.

Unit 401 – Negotiation Strategy (Part 1)

pg 6-15

3.

Unit 402 – Negotiation Strategy (Part 1)

pg 16-25

4.

Unit 403 – Building the Relationship

pg 26-36

5.

Unit 404 – Getting Started

pg 37-47

6.

Unit 405 – Clarifying and Evaluating Positions

pg 48-56

7.

Unit 406 – Declining an Offer & Maintaining Goodwill

pg 57-67

8.

Unit 407 – Bargaining

pg 68-78

9.

Unit 408 – Restarting Talks

pg 79-88

10.

Unit 409 – Closing the Deal

pg 89-99

11.

Useful Language by Function

pg 100-108

12.

Online Flash Quizzes (click here to view the online activities)

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Successful Negotiations Successful Negotiations This is an e-book brought to you by Business English Pod, the leading provider of on-demand training for business English communication skills, available on the Web at www.businessenglishpod.com. In Successful Negotiations we’ll explore the language of negotiating in English with a series of lessons and activities that examine several typical business negotiations and the language used in each stage of the process. The goal is to study all the essentials language you need to present your case and discuss different options in a negotiation. The first two lessons cover the fundamentals of negotiation strategy and common terms and collocations used to describe different aspects of a negotiation. In the following seven lessons, we will examine two different styles of negotiations: A transactional negotiation between Tony, a supplier of building materials, and Paul, a purchasing manager for a large construction company; and, a strategic negotiation between the owners of two mobile phone service providers who are trying to negotiate the merger of their companies. First, we look at how building a strong relationship at the beginning of a negotiation can help overcome obstacles in later stages. Then, we’ll look at how to start off a negotiation, set ground rules for the discussion and begin to explore possibilities. After that, we’ll study stating, clarifying, and evaluating positions. As not all negotiations are successful, we’ll also cover how to decline an offer while maintaining the goodwill generated through the discussion. The next lesson deals with the process of trading concessions by making offers and counter-offers. The final two lessons focus on overcoming obstacles by identifying stumbling blocks and exploring alternatives; and how to close the deal by summarizing details, tying up loose ends, and reinforcing the relationship. In all, this e-book has over four hours of information-packed audio lessons. The accompanying study notes contain a complete transcript of every lesson, vocabulary definitions, extra practice questions, and study strategies. And you can access over 90 interactive Flash exercises via the Business English Pod website and the activity links in this e-book. In each lesson, we’ll introduce the topic, then you’ll hear a dialog that demonstrates the key language. Afterwards, in the “debrief” section, we’ll take you through the main points and explain important vocabulary and idioms. For each skill, we’ll learn more phrases that you can use. Then, finally, in the practice section of each debrief, you will have the opportunity to practice the language you covered in the lesson.

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businessenglishpod Learners often ask me how to study more efficiently and effectively. I have some suggestions. Listen to each chapter and practice the example phrases multiple times. First listen without the transcript; then, when you have time, go back and listen again with the transcript. Underline and look up words you don’t understand. It’s important to study vocabulary in context: Pay attention to collocations, or word partnerships, and words in whole sentences, with their accompanying prepositions and other grammatical characteristics. Do the practice section of each debrief at least a couple times; try substituting different language the second time you practice. Substitution helps you increase your fluency, that is, your ability to say the same thing in many ways. You can also record yourself, write and act out dialogs, and practice together with a learning partner. These and many more strategies are covered in the study notes for each chapter. Successful Negotiations is targeted for intermediate learners at or above the Common European Framework (CEF) level B2. This corresponds to a BULATS score of 3 or higher or an IELTS score of 5 or higher. The materials are designed, however, to be useful to students at a variety of levels: intermediate learners will focus initially on language development, whereas upperintermediate and more advanced learners can zoom in on skills development, high-level vocabulary, fluency, confidence and enhancement of overall professionalism.

What’s Included? All Business English Pod e-books come with a variety of study resources to provide learners with maximum flexibility and value. You can access and download all the materials for this e-book on this webpage: www.businessenglishpod.com/learningcenter2/ebooks/business-english-negotiations-ebook

Each e-book includes the following resources:

Podcasts

Study Notes

MP3 lessons you can listen to on your computer, MP3 player or mobile phone.

PDF lesson transcripts with extra vocabulary and language exercises.

PhraseCasts

Online Activities

Compact MP3’s of just the dialog, phrases and speaking practice.

Interactive quizzes, listening and language review exercises.

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Successful Negotiations Online Activities:

MP3 Podcast:

BEP 401 – Negotiation Strategy (Part 1) This is the beginning of a new series on the skills and language of negotiating in English. Over the coming months we’ll explore the topic in a series of podcasts that examine several typical business negotiations and the language used in each stage of the process. Today’s show is the first in a two-part sequence on the fundamentals of negotiation strategy. We will be hearing an interview with experienced management consultant Brian Fields. Brian discusses key concepts and important strategic considerations. The dialog teaches us both useful vocabulary and helpful skills. As you listen, try to answer the following questions.

Listening Questions 1) What are the top mistakes people make in a negotiation?

2) What is a BATNA, or “best alternative to a negotiated agreement?”

3) What does Brian think about the idea of “win-win” negotiations?

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businessenglishpod Vocabulary Overemphasis: Too much emphasis. The verb form is to overemphasize. “In my discussions there is an overemphasis on price, in my opinion.” Bargaining chips: Something you give away in a negotiation to get something in return. (“Chip” originally refers to the round plastic coins used in betting during card games such as poker.) “We have to think of a few things that we can give away as bargaining chips during our talks.” Tactical questions: In many contexts, tactics refers to details and specific concerns whereas strategy may refer to general principles and the bigger picture. “How to get a larger discount on this order is more of a tactical question whereas how to build a long-term relationship is more of a strategic one.” Coherent strategy: A logical and consistent method of approaching a game, battle, war or negotiation in order to protect one’s interests and act in one’s benefit. “We should build a coherent strategy for dealing with this market.” BATNA: Short for “best alternative to a negotiated agreement.” This is what you will do if you don’t reach an agreement. “Before you go into a negotiation, you should have an idea of what you will do if talks break down – this is called your BATNA, and it should be better than your bottom line; otherwise, you have nothing to gain from the negotiation.” Bottom line: The worst possible result we are prepared to accept before we walk away from the talks. “I’m already at my bottom line – I can’t accept a lower price than this.” To have/put sth on the table: To put sth. on the table refers to making an offer; to have sth on the table refers to an offer that is already made. “He put $3 million on the table, but I though it wasn’t enough.” “We have a lot of offers on the table, but none of them meet our expectations.” To structure the deal: To organize the contract or arrangement, including, for example, credit terms, ownership, payment, and so on. “How you structure a deal can be just as important as the actual price.” Potential buyers: People who may wish to buy what we are selling, but who have not yet made offers. “We should contact a range of potential buyers.” Deal sweeteners: Things used to make a potential deal more attractive. “Good credit terms can be a great deal sweetener.” Win-win agreement: An agreement in which both parties benefit. “Actually, in most cases negotiations are win-win – otherwise, how do people reach a compromise? Cliché: A word or expression that has become meaningless from overuse. “The idea of a ‘win-win’ agreement has almost become a cliché.” Zone of possible agreement: The range of overlap between two negotiation parties bottom lines that represents a possible area of agreement. (If no such overlap exists, agreement is impossible.) “If I am buying, and you are selling, then our zone of possible agreement is the range between the highest price I am willing to pay and the lowest price you are willing to accept.” Reach a compromise: To reach an agreement based on making concessions, i.e., based on all parties to a negotiation being willing to give up something in order to make a deal. Compromise can also be used as a verb, in which case it means something similar to: to make a concession. “We reached a compromise after many days of hard talks.” To swap concessions: Swap means to trade, so swapping concessions means both parties to a negotiation giving up things in turn to reach an agreement. “To reach a compromise, it’s usually necessary for both sides to swap concessions.”

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Successful Negotiations Dialog Interviewer: What do you think are some of the top mistakes people make going into a negotiation? Brian: Well, a lot of the most common mistakes usually start before the negotiation even begins. Interviewer: How do you mean? Brian: For example, in the planning stages there is often an overemphasis on price… things like, “Should I put the first number on the table, or wait for them to make the first move?” “Should I tell them what we really need, or should I include some bargaining chips that we can give away later.” Interviewer: Aren’t those things important? Brian: Yes, of course, but they are just tactical questions. None of them can be answered without developing a coherent strategy first. Interviewer: So what goes into building a strategy? Brian: There are several factors to consider. The first one is what you’ll do if you don’t come to an agreement… this is often called your BATNA, or “best alternative to a negotiated agreement.” Interviewer: Isn’t that the same as your bottom line? Brian: Not necessarily. Your BATNA is what is already available, so your bottom line should be better. Otherwise there’s nothing to be gained from negotiation. Interview: That makes sense. Brian: And in determining the best alternative, we have to look at more than just the offers that we currently have on the table, and we have to take other factors into consideration than just the price. For example, there may be other ways to structure the deal, more potential buyers out there, or deal sweeteners, such as payment in cash instead of credit. Interviewer: Is it all about maximizing your own benefit? Or do you think there’s anything to the idea of a win-win agreement? Brian: Well, win-win has become a bit of a cliché. But let’s take a look at the original meaning of the word: Of course we are both trying to get the best deal, but consider this: If I am selling, and you are buying, and my bottom line is lower than the highest price you are willing to pay, then we call that overlap the zone of possible agreement. Reaching a compromise anywhere in that zone is a win-win solution. It’s just a matter of swapping concessions to get there.

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businessenglishpod Debrief Let’s review the vocabulary and concepts that Brian uses to introduce the topic of negotiations. How does the dialog begin? The interviewer asks Brian about the top mistakes people make in a negotiation. Surprisingly, Brian replies that the most common mistakes actually start before the negotiation begins. What are those mistakes? Listen again. Brian: For example, in the planning stages there is often an overemphasis on price Brian says people have an overemphasis – that is, too much emphasis – on price. The verb form is to overemphasize. This word is useful for describing situations in which someone pays too much attention to something, often to the neglect or detriment of something else. Let’s listen to a few more examples of this expression in use.   

In my opinion, there seems to be an overemphasis on price in our discussions. If you ask me, we’re overemphasizing delivery time – we should be more focused on quality. We have to be careful not to overemphasize minor factors.

Brian then goes on to provide two examples of an overemphasis on price. Brian: … things like, “Should I put the first number on the table, or wait for them to make the first move?” “Should I tell them what we really need, or should I include some bargaining chips that we can give away later.” What are bargaining chips? In a game of cards, such as poker, we often bet “chips” – little round plastic discs – instead of cash. Each chip represents a certain amount of money. Idiomatically, a “bargaining chip” is anything that you can bet or give away in return to something else. (For example, you may be able to use delivery time as a bargaining chip in order to get a concession on price.) Let’s practice this idiom by listening to some more examples:  



Since he was very flexible on warranty period, he used this as a bargaining chip to get concessions on delivery time. They are obviously using their good relationships with local government as a bargaining chip to try to negotiate exclusive rights to sell our product in this market. It’s too early in the negotiation to throw away bargaining chips – never give something up without getting something in return!

How does the interviewer respond to Brian’s statement that people often overemphasize price? Interviewer: Aren’t those things important?

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Successful Negotiations Brian: Yes, of course, but they are just tactical questions. None of them can be answered without developing a coherent strategy first. Brian’s point here is that price is merely a tactical question, which can’t be answered until we first develop a coherent – that is logical and consistent – strategy. What is the difference between tactics and strategy? They are often used the same way. But here’s one way to think of the difference: Tactics are what we need to win the battle, whereas strategy is what we need to win the war. Tactics usually refers to details, whereas strategy often refers to general principles. Let’s listen to some more examples of tactics and strategy:   

We always have to keep in mind our long-term strategy of building a good relationship. Tactical concerns include discount and delivery; using this client to establish a relationship in this new market is more of a strategic concern. It’s time to go beyond just thinking about short-term tactics and start considering long-term strategies.

Next, Brian discusses an important factor in building a strategy: Your best alternative to a negotiated agreement or BATNA. The interviewer asks about the difference between a BATNA, or best alternative, and a bottom line, which is also know as your “walk-away point,” the minimum offer you are prepared to accept: Interviewer: Isn’t that the same as your bottom line? Brian: Not necessarily. Your BATNA is what is already available, so your bottom line should be better. Otherwise there’s nothing to be gained from negotiation. Brian is saying that our BATNA is what we will do if we don’t reach an agreement, so our bottom line – the worst possible agreement we can accept – should be better than that. Now, listen to some example phrases using BATNA and bottom line.    

To determine our BATNA, we have to consider not just the other offers on the table, but also potential buyers that we haven’t yet talked to. Before you can determine your bottom line, you need to put a value on your best alternative. Sometimes your best alternative is to do nothing at all. Several not-so-obvious things go into deciding your BATNA, including the timing of the deal – a bird in the hand may be worth two in the bush.

The last example includes an idiom – a bird in the hand is worth two in the bush. This means that gains we have gotten now should be valued more highly than greater gains that are merely promised for the future. The difference between BATNA and bottom line should now be clear. But how do we determine our BATNA?

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businessenglishpod Brian: And in determining the best alternative, we have to look at more than just the offers that we currently have on the table, and we have to take other factors into consideration than just the price. For example, there may be other ways to structure the deal, more potential buyers out there, or deal sweeteners, such as good timing or payment in cash instead of credit. As Brian points out, our best alternative is not necessarily just the best offer we have on the table, that is, our BATNA is not necessarily the best offer we have received so far. Also, to decide our best alternative, we have to actually consider a number of factors besides just price. What are these other important considerations? The first one is how the deal is structured, that is, for example, credit terms, payment periods, legal aspects, and so on. Second, we may want to think about other potential buyers – not just the ones we have already contacted. Finally, there may be some deal sweeteners, which refer to factors beyond mere price that make an arrangement “sweeter,” that is, more attractive. Let’s look at some example phrases with this last idiom, deal sweeteners.   

If we’re going to get them to agree to our offer, we’re going to have to think of some ways to sweeten the deal. Why don’t I sweeten the deal a little by increasing our discount by 1%? There’s a variety of deal sweeteners that we can use to make buying our company more attractive.

Next, the interviewer asks Brian what he thinks about the idea of a win-win negotiation. Brian replies that win-win has become a cliché, that is an expression that is used so much that it becomes meaningless. But then he encourages us to think about the actual meaning of win-win: Brian: …Of course we are both trying to get the best deal, but consider this: If I am selling, and you are buying, and my bottom line is lower than the highest price you are willing to pay, then we call that overlap the zone of possible agreement. Reaching a compromise anywhere in that zone is a win-win solution. It’s just a matter of swapping concessions to get there. What Brian is saying is that all negotiations – to be successful – must be winwin: If you are buying, and I am selling, the lowest price I am willing to give you must be under the highest price that you are wiling to pay. This area of overlap between our bottom lines is referred to as the zone of possible agreement. Any compromise we reach in that zone benefits both of us. We reach an agreement in this zone by swapping – that is, trading – concessions: First you make a concession, than I make one, until we make a deal. Let’s review agreement, compromise, and concessions with some example phrases. As you listen, pay attention to collocations – word partnerships between nouns and verbs.

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Successful Negotiations   

If there’s going to be any agreement, it’s necessary for one of us to make a concession. The only way to reach a compromise is to make a concession. The negotiation was finally successful when the other party backed down and compromised on a key issue.

From these examples, we notice a couple things: First, we usually say to make a concession and to reach a compromise. A compromise is a kind of agreement, and a concession is something we do to reach it. Note, however, that in the last example compromise is used as a verb. In this case, to compromise basically means to make a concession. (For this reason, sometimes we also say to make a compromise with a similar meaning as to make a concession.) Now, it’s your turn to practice. First, we’ll review some of the verb collocations we just learned. In a moment, you’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence, supplying the missing verb in the correct form. For example, if you hear: The only way forward is if one of us a concession. You will say, The only way forward is if one of us makes a concession. Let’s give it a try. Cue 1: By trading concessions, we will eventually a compromise. Learner 1: Cue 2: I think we can our strong brand name as a bargaining chip. Learner2: Cue 3: In last week’s negotiation, I a concession on price. Learner 3:

Cue 4: I think that an overemphasis on price is keeping us from an agreement. Learner 4:

Answer 1: By trading concessions, we will eventually reach a compromise. Answer 2: I think we can use our strong brand name as a bargaining chip. Answer 3: In last week’s negotiation, I made a concession on price. Answer 4: I think that an overemphasis on price is keeping us from reaching an agreement.

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businessenglishpod Next we’ll use the same method to review key vocabulary. In a moment you’ll hear another series of cues. As before, one word is blanked out with a beep. Repeat each sentence, putting in the missing word. Cue 1: In our discussions, there seems to be an on price. Learner 1:

Cue 2: It’s too early in the negotiation to throw away chips. Learner 2:

Cue 3: We always have to keep in mind our long-term of building a good relationship. Learner 3:

Cue 4: There’s a variety of deal that we can use to make buying our company more attractive. Learner 4:

Answer 1: In our discussions, there seems to be an overemphasis on price. Answer 2: It’s too early in the negotiation to throw away bargaining chips. Answer 3: We always have to keep in mind our long-term strategy of building a good relationship. Answer 4: There’s a variety of deal sweeteners that we can use to make buying our company more attractive. That concludes the first in this two-part series on negotiation strategy. In this episode, we’ve learned both a variety of useful language and a range of helpful skills. Thanks for listening, and see you next time!

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Successful Negotiations Language Review A. Useful Vocabulary Review useful vocabulary by filling in the blanks with words from the box. tactical

bargaining overemphasizing

bargaining

bottom

alternative

1. If you ask me, they are ___________ rapid delivery to the detriment of quality. 2. Since he was very flexible on warranty period, he

used this as a

______________ chip to get concessions on delivery time. 3. _______________ concerns include discount and delivery; using this client to

establish

a

relationship

in

this

new

market

is

more

of

a

________________ concern. 4. Before you can determine your ______________ line, you need to put a value on your best ______________.

B. Collocations Supply the missing collocations in the sentences below to review important negotiation vocabulary. 1. If there’s going to be any agreement, it’s necessary for one of us to ___________ a concession. 2. The only way concessions.

to

____________

a

compromise

is

to

___________

3. To ________________ an agreement, we had to use delivery time as a bargaining chip. 4. Let’s try to think of ways ________________ the deal.

to

make

our

offer

more

attractive

by

5. We need to _____________ a better offer on the table.

Study Strategy Consider a negotiation that you have participated in. It can be anything from a formal business negotiation to an informal personal discussion. Analyze it in the terms that we have learned in this episode: Was there an overemphasis on price? What did you give away as bargaining chips? What was your BATNA and your bottom line? How did you reach a compromise?

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businessenglishpod Answers Listening Questions 1) Brian says that a top mistake people make is to overemphasize price. More generally, he says they focus too much on tactical questions without first developing a coherent strategy. 2) Your best alternative to a negotiated agreement (BATNA) is what you will do if you don’t reach an agreement during the negotiation. Your BATNA is what is already available, so your bottom line should be better than your BATNA. 3) Brian says that win-win has become a bit of a cliché. However, the basic meaning of the word is that, under normal circumstances, both parties must benefit in order to come to a deal. In this sense, all successful negotiations are “win-win.” Language Review A. Useful Vocabulary 1. If you ask me, they are overemphasizing rapid delivery to the detriment of quality. 2. Since he was very flexible on warranty period, he used this as a bargaining chip to get concessions on delivery time. 3. tactical concerns include discount and delivery; using this client to establish a relationship in this new market is more of a strategic concern. 4. Before you can determine your bottom line, you need to put a value on your best alternative. B. Collocations 1. If there’s going to be any agreement, it’s necessary for one of us to make a concession. 2. The only way to reach a compromise is to swap/trade/make concessions. 3. To reach/get to an agreement, we had to use delivery time as a bargaining chip. 4. Let’s try to think of ways to make our offer more attractive by sweetening the deal. 5. We need to put a better offer on the table.

Links (click a link to open the exercise) Online Activities – Flash Quizzes

(click above to open)

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Successful Negotiations Online Activities:

MP3 Podcast:

BEP 402 – Negotiation Strategy (Part 2) This is the second in a two-part series on negotiation strategy. It is part of a longer sequence on negotiation skills. In the first episode, management consultant Bryan Fields discussed the basics of making a deal. We learned how to avoid some top common mistakes and we reviewed important vocabulary, such as BATNA, bottom line, bargaining chip, win-win, and zone of possible agreement. Today’s show continues the interview with Bryan. In the dialog, we’ll learn five important elements of strategy – parties, interests, value, power and ethics. And along the way we’ll study useful vocabulary and idioms.

Listening Questions 1) What is the interviewer talking about when he refers to a “trap?”

2) How does Bryan say we should think about interests?

3) In the interview, we learn that overcoming blockage – that is, getting past problems – is not just about reaching the agreement but also about maximizing what?

Vocabulary “Not by a long shot:” “Not even close.” “We don’t think there is any money to be made in this deal for us – not by a long shot.” Party: A participant in a negotiation. “Identifying the real parties to a negotiation is a key step in your preparation.” Decision maker: The person in charge of making a final decision. “In Chinese culture, it may not at all be obvious who the real decision maker is when you first meet.

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businessenglishpod Trap: Something that wastes time, energy, or money in a negotiation, or which can even cause it to fail. In some cases, your opposite number may even intentionally lay or set a trap for you. “They set a trap for us, and we fell right into it.” Interests: The motivations and aims that help define each part’s objectives. “To achieve your own goals, it’s essential to consider the other parties’ interests.” Opposite number: The person (usually of equal rank) who holds your job on the other party. “My opposite number in the negotiation had years more experience than I did.” Where is/are he/she/they coming from? What is their motivation? What drives them? What are their real interests? “We’re trying to understand where they are coming from, but so far it’s difficult to determine. Value: Includes not just monetary value (price) but also intangible, abstract things like loyalty, brand image, synergies, etc. Collocates with to create, to deliver, etc. “We have to find more ways to create value and deliver it to our customers.” Synergy (n) /synergetic (adj.) / to synergize (v): Synergy refers to a situation in which the whole is greater than the sum of the parts (that is, situations in which one plus one is greater than two). “We are looking for synergy effects in order to maximize joint value.” To think outside the box: To think creatively outside the normal habits of a group or organization. “People who can think outside the box are often the best at finding a compromise that all sides can agree to.” To contribute to the image of sth. : In this case, image refers to the way that something is seen – its’ reputation. “Stocking a famous brand can often contribute greatly to a store’s image.” Commercial transaction: A situation in which party A buys something from party B and gives them money for it. “Simple commercial transactions are only one type of negotiation.” To set up/remove barriers/obstacles/impediments: Barriers, obstacles, and impediments are all things that block the road. A barrier is total – the road cannot be passed; whereas, obstacles and impediments only hinder progress. “Traditional thinking can be an impediment to positive change.” Joint value: Mutual benefit. “We have to think of ways to create joint value.” To overcome blockage: To defeat or conquer barriers to a negotiation. “Overcoming blockage requires a sincere desire on all sides to reach an agreement.” To make the deal: To reach agreement. “It took two weeks to make this deal.” To maximize value: To create the most value possible. “Negotiation is not just about reaching a simple agreement but about maximizing value.” Corporate social responsibility: Values of moral responsibility to the environment and to the public that companies use to create value by improving their image and reputation. “In today’s business environment, corporate social responsibility is an important factor in any global company’s success.” Shareholder rights: Rights of stockholders in a company to information, dividends (profit share) etc. “One of the most important shareholder rights it that to information about a company’s profit and loss.”

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Successful Negotiations Dialog Interviewer: Okay, and are those the main things to planning strategy? Bryan: Not by a long shot. There are several other things to consider. For instance, we should constantly be asking ourselves, who are the real parties in the negotiation… who are the decision makers. Sometimes the person sitting across the table from you is not the person in charge, or isn’t who they seem to be. Interviewer: Right, I can see how that could be a trap. Bryan: Absolutely. And another thing is to think creatively about interests. That means, what are their fundamental needs and priorities? A lot of people make the mistake of not considering carefully where their opposite number is coming from, and what goals he has to accomplish. Interviewer: That has to do with benefits? Bryan: Certainly, and it leads into a discussion of value. We are looking for synergy effects, i.e., ways to make 1 + 1 equal more than 2. The questions are, How can value be created? and, Who is likely to get it?. We need to think outside the box. Interviewer: Can you give me an example? Bryan: Well…. For instance, you may be interested in buying my product because it contributes to the image of your store. Or you may want to acquire my business because it will help you control a key part of the market. There is much more to all this than a simple commercial transaction. Interviewer: Okay, so far we’ve only talked about positive things. What are the negatives that come up in a negotiation? Bryan: There’re certainly negatives as well. We often call these barriers. It’s important to think of these not just in terms of obstacles that might prevent agreement, but, much more subtly, as impediments to maximizing joint value. Interviewer: So overcoming blockage is not just about making the deal, it’s about maximizing value as well. Bryan: That’s right. And to do that, you have to watch out for the ways that various parties influence the negotiation process and its outcome. This kind of power to remove or set up barriers to agreement can be both a blessing and a curse. Interviewer: It seems to me that there’s one last thing that hasn’t come into the discussion so far, and that’s: Morally, what is the right thing to do? Bryan: If you had asked me that question 15 years ago, I might have laughed. But these days we think of ethics in broader terms to include the environment… corporate social responsibility… shareholder rights… and all these areas have a lot of potential value for companies.

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businessenglishpod Debrief As the dialog opens, the interviewer – referring to the first half of the discussion in the previous episode – asks Bryan if that was all there was to negotiation strategy. Bryan replies, “Not by a long shot,” which means, “not at all.” Then he goes on to mention another key strategic concern: Bryan: …For instance, we should constantly be asking ourselves, who are the real parties in the negotiation… who are the decision makers. A party to a negotiation is a person, group, or company that has an interest in the discussion. For example, in a typical sales negotiation there are at least two parties – the buyer and the seller. Bryan emphasizes how important it is to determine who the real parties are – who are the decision makers, that is, the people who have the final authority to make a decision, be it yes or no, buy or sell. He says, “sometimes the person sitting across the table from you is not the person in charge.” The interviewer refers to this as a trap, which in this case means a situation that leads us to waste time and energy or, in the worst case, causes us fail. So determining the real parties – the decision makers – is the first strategy that Bryan mentions. Let’s listen to some more example sentences discussing this element of strategy:   

It’s not always obvious at first glance who the decision makers are. Often, there are more than just two parties to a negotiation – deals may be complex, and we must also consider government or shareholder involvement. It’s important to recognize the real parties to the negotiation and identify the key decision makers.

After interests, what is the next strategy Bryan talks about? Bryan: … And another thing is to think creatively about interests. That means, what are their fundamental needs and priorities? A lot of people make the mistake of not considering carefully where their opposite number is coming from, and what goals he has to accomplish. Here Bryan emphasizes the importance of thinking creatively or originally about the actual interests or goals of the parties to a negotiation. We must consider where they are coming from – that is, what their opinions and viewpoints are, what motivates and drives them, etc. The idiom – where someone is coming from – is a useful oral English expression for discussing interests. Listen to some more examples of its use:   

I don’t think I really understand where he’s coming from on this issue. We asked them about their motives for the merger to get a feeling for where they were coming from. It’s not at all clear to me where she is coming from.

As the interviewer points out in the dialog, thinking about interests means considering the other parties benefits. How does Bryan react to this observation?

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Successful Negotiations Bryan: Certainly, and it leads into a discussion of value. We are looking for synergy effects, i.e., ways to make 1 + 1 equal more than 2. Value is a key consideration in any business deal. It is a broad, abstract term that does not refer merely to money but more generally to benefit and gain of all types. We often speak of creating value and delivering value to customers. Creating value involves looking for synergy, which, as Bryan points out, means situations in which the whole is greater than the sum of the parts – or, as he says, in which one plus one is equal to more than 2. This term – synergy – has become a very popular and important word in business language.   

After many mergers, the promised synergies fail to materialize, often because of cultural and management differences. A lot of what we are doing in negotiation is looking for synergies between our companies. Identifying synergy effects requires creative thinking.

Next, Bryan goes on to talk about how to create synergy effects… Bryan: The question is, How can value be created? and, Who is likely to get it? We need to think outside the box. To think outside the box is another popular, useful business idiom. It means to think outside the normal habits of a group or organization – in other words, to think creatively.   

I particularly admire his ability to think outside the box – he’s very original. In many tough negotiations, it can really help if there is someone on both sides who can think outside the box. Often, finding and creating value requires thinking outside the box.

Bryan gives two examples of thinking outside the box: 1) Carrying a product in a store not just to sell it but because it contributes to the image of our business; and 2) Buying a business not to directly add to our profit but to control a part of the market. As he underlines, there is much more to all of this than a simple commercial transaction, i.e., more than mere buying and selling. Next, the discussion turns from positives to negatives – things that can cause a negotiation to falter or fail: Bryan: There’re certainly negatives as well. We often call these barriers. It’s important to think of these not just in terms of obstacles that might prevent agreement, but, much more subtly, impediments to maximizing joint value. Bryan calls these negative barriers. Words he uses with the same or similar meanings include obstacles and impediments. All of these words collocate with the verbs set up (to create) and remove (to get rid of), and they use the preposition to: For example, Bryan says it’s important to remove obstacles to maximizing joint value. That means, to get rid of things that prevent all sides from getting more benefit. Together, all these negatives – obstacles,

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businessenglishpod impediments, and so on – are referred to as blockage, which must be overcome or removed. Let’s listen to more examples that demonstrate this important vocabulary:   

It was a real challenge to remove the barriers that had been set up, but in the end we succeeded. Overcoming blockage is a process of getting rid of obstacles in the road to an agreement. A typical impediment to compromise is an overemphasis on price.

The discussion of blockage leads into the next important strategic consideration – power. As Bryan thinks of it, this means the ability to set up or remove barriers, which – depending on what side you are on – can be a blessing or a curse. This last phrase forms a common idiom. It refers to something that can be bad or good, depending on the situation. (We also say something is both a blessing and a curse.) Listen to some more examples of this expression:   

Fierce competition can be both a blessing and a curse. Time constraints can be a blessing and a curse – both speeding things along and causing people to give up without reaching agreement. Having a clear bottom line can be both a blessing and a curse – it’s often better to be fairly flexible in your approach.

What is the last point that the interviewer raises in the discussion, before the interview draws to a close? It’s ethics, or morality. The interviewer poses the question, “Do we need to think morally, what is the right thing to do?” How does Bryan respond? Bryan: If you had asked me that question 15 years ago, I might have laughed. But these days we think of ethics in broader terms to include the environment… corporate social responsibility… shareholder rights… and all these areas have a lot of potential value for companies. Bryan’s opinion is that ethics have become more and more important to business. Examples he gives are the environment, corporate social responsibility (often referred to as CSR) and shareholder rights (which mainly refers to the right of company stockholders to information, but also to the right to dividends or profit share and the right to cast votes). As Bryan points out, all these moral issues are areas of great potential value to companies. Let’s explore all these expressions with example phrases. 

 

Corporate social responsibility is an area of great potential value to companies these days, since it can help companies build brand image and loyalty. More and more companies are recognizing the potential value of environmental protection. There is good evidence that expanding and protecting shareholder rights actually can have a positive effect on stock price.

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Successful Negotiations Now, it’s your turn to practice. First, we’ll review some of the verb collocations that we just learned: In a moment, you’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence, supplying the missing verb in the correct form. For example, if you hear: It is important to obstacles to reaching an agreement. You will say: It is important to remove obstacles to reaching an agreement. Let’s give it a try. Cue 1: To reach an agreement it’s necessary to blockage. Learner 1: Cue 2: Ideally, negotiation is a process of joint value. Learner 2: Cue 3: We have to try to outside the box on this. Learner 3: Cue 4: Let’s try to think of ways to more value to customers. Learner 4: Answer 1: To reach an agreement it’s necessary to overcome blockage. Answer 2: Ideally, negotiation is a process of maximizing joint value. Answer 3: We have to try to think outside the box on this. Answer 4: Let’s try to think of ways to deliver more value to customers. Next we’ll use the same method to review key vocabulary. You’ll hear another series of cues. As before, one word is blanked out with a beep. Repeat each sentence, supplying the missing word. Cue 1: After many mergers, the promised fail to materialize. Learner 1: Cue 2: It’s not at all clear to me where she is from. Learner 2: Cue 3: Fierce competition can be both a and a curse. Learner 3: Cue 4: More and more companies are recognizing the great value in environmental protection. Learner 4: Cue 5: Corporate responsibility is an area of great concern to many companies these days. Learner 5:

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businessenglishpod Answer 1: After many mergers, the promised synergies fail to materialize. Answer 2: It’s not at all clear to me where she is coming from. Answer 3: Fierce competition can be both a blessing and a curse. Answer 4: More and more companies are recognizing the great potential value in environmental protection. Answer 5: Corporate social responsibility is an area of great concern to many companies these days. That concludes this two-part series on negotiation strategy. We have looked at common mistakes and reviewed important elements of strategy, including BATNA, interests, values, barriers, power and ethics. We’ve also covered significant verb collocations as well as a range of useful idioms and expressions, such as bargaining chips, deal sweeteners, synergy, and thinking outside the box. In future episodes, we’ll take a closer look at negotiation language and skills. Thanks for listening!

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Successful Negotiations Language Review A. Useful Language Review important vocabulary by filling in the blanks in the following sentences with words we covered in this episode. 1. Often, the most vital step is to recognize real parties to the negotiation and identify the

1)

___________ decision makers.

2. We asked them a series of questions about their motives and interests to get 2)

a feeling for where they are really

_____________ from.

3. A lot of what we are doing in negotiation is looking for

3)

______________

between our companies. 4. In many tough negotiations, it can really help if there is someone on both sides who can think

4)

________________ the box.

5. Having a clear bottom line can be both a blessing or a often better to be fairly

5)

____________– it’s

7)

___________ in your approach.

6. More and more companies are recognizing the great

8)

________________

value in environmental protection. 7. Corporate social

9)

companies these

______________ is an area of great potential value to days, since

it

can

help

companies build brand

10)

___________ and loyalty. B. Prepositions Review To review useful expression, supply the missing prepositions in the following sentences. 1. A typical impediment _____ compromise is an overemphasis ______ price. 2. Overcoming blockage is a process of getting rid _____ obstacles _____ the road ______ an agreement. 3. It was a real challenge _______ remove the barriers that had been set up, but in the end we succeeded. 4. It is important to remove obstacles ________ reaching an agreement.

Study Strategy Think of a negotiation that you had recently or that you have watched or know about. Analyze it in the terms we have learned in this episode and the last. What were the parties’ BATNAs and bottom lines? Who were the real decision makers? What were their interests? How did power play a role? Were their any ethical questions? Did the people involved think outside the box to maximize joint value? Or was there an overemphasis on price? Prepare a short talk presenting your findings.

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businessenglishpod Answers Listening Questions 1) The interviewer uses “trap” to refer to the situation Bryan describes in which the person sitting across from you in a negotiation is not the actual party or decision maker you should be negotiating with. 2) Bryan says we should think creatively about interests: We should think of the real goals of our opposite number – the person with whom we are negotiating – and use this creative thinking to find new ways to create value for all sides. 3) As Bryan and the interviewer discuss, we shouldn’t just think of blockage as obstacles to reaching an agreement but also as impediments to maximizing shared value. That is, overcoming blockage is also about increasing value. Language Review A. Useful Language 1) Often, the most vital step is to recognize real parties to the negotiation and identify the 1) key decision makers. 2) We asked them a series of questions about their motives and interests to get a feeling for where they are really 2) coming from. 3) A lot of what we are doing in negotiation is looking for 3) synergies between our companies. 4) In many tough negotiations, it can really help if there is someone on both sides who can think 4) outside the box. 5) Having a clear bottom line can be both a blessing or a 5) curse – it’s often better to be fairly 7) flexible in your approach. 6) More and more companies are recognizing the great 8) potential value in environmental protection. 7) Corporate social 9) responsibility is an area of great potential value to companies these days, since it can help companies build brand 10) image and loyalty. B. Prepositions Review 1) A typical impediment to compromise is an overemphasis on price. 2) Overcoming blockage is a process of getting rid of obstacles in the road to an agreement. 3) It was a real challenge to remove the barriers that had been set up, but in the end we succeeded. 4) It is important to remove obstacles to reaching an agreement.

Online Activities – Flash Quizzes

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Successful Negotiations Online Activities:

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BEP 403 – Building Relationships This episode on relationship building is part of an ongoing series on negotiation skills. There’s an old saying in business – It’s easy to make money once, but it’s hard to keep making money for a long time. In other words, I may be able to make a deal with you this one time, but unless we establish a relationship based on long-term mutual benefit, you may not answer the phone the next time I call. In negotiation, establishing a good relationship based on trust makes it possible to jointly search for creative solutions, to overcome blockage and even to turn conflict into a productive force. In this episode, both Peter and Maxine are owners of local telecommunication services that provide mobile phone users with ring tones and games. Peter’s company, Textacular, has a significant presence in Denmark; meanwhile, Maxine’s company, Gamester, is based in northern Germany. Peter is working on a plan to sell his business to a large, European-wide telecom service provider. In an effort to increase his company’s value so that he can get more money for it, Peter wants to roll up or buy other local services like his. In today’s listening, he is having lunch with Maxine to find out whether she might be interested in selling her company. As the dialog starts, they have just ordered their food.

Listening Questions 1) Have Peter and Maxine met before?

2) What does Peter say is his and Maxine’s “biggest overlapping concern?”

3) How does Peter bring up the subject of a possible merger between his and Maxine’s company?

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businessenglishpod Vocabulary Only good things, I hope! Small talk. Typical response to the phrase, “X has said lots about you." “A: Jenny has said a lot about you. B: Only good things, I hope!” To be very impressed with sth: To have a good impression of sth. or to be filled with admiration about sth. “I was very impressed with how he handled the situation. Mutual interests: Joint/shared concerns or benefits. “We have a lot of mutual interests that are worth exploring.” Overlapping concerns: Shared areas of interest or concern. “I would be very interested in discussing our overlapping concerns in this area.” Pan-European providers: “Pan” means all; provider refers to a service provider. A pan-European provider, thus, is a company that provides service to all of Europe. The trend is towards sth.: To have a tendancy towards sth. “The trend in the market is towards smaller and smaller cars.” Consolidation: The act of small parts merging into one. “There are so many small, regional players in this market that we think some consolidation is inevitable.” To be in sth. together: To be on the same team; to face difficulties together. “There’s no way I’m abandoning you – we’re in this together.” To band together: To form a strong group. “In the face of a strong common opponent, the companies banded together. To join forces (with) s/o: To combine resources and strength with s/o. “To remain competitive, we were forced to join forces with another regional provider.” To cross one’s mind: To occur to s/o. “The thought has crossed our minds.”

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Successful Negotiations Dialog Peter: So, Sam has said a lot about you. Maxine: Only good things, I hope! Peter: Of course. And I’ve been looking at the figures, and I must say I’m very impressed with your company. Maxine: Thanks. Peter: It’s great to finally have the opportunity to meet you. Maxine: Likewise. Peter: So, have you eaten here before? Maxine: Once or twice. Can I make a recommendation? Peter: Yes, that’d be great. [Fade out] Peter: [Fade in] Mhhmm. The food is delicious… Maxine: I’m glad you like it. Peter: So, as I mentioned over the phone, I’m hoping we can explore some mutual interests. Maxine: Yes, we certainly have overlapping concerns. Peter: Obviously, the big one is how to remain competitive in the face of pan-European providers. Maxine: Sure. The trend is definitely towards consolidation. Peter: The way I see it, we’re in this together. We have everything to gain by banding together. Maxine: What did you have in mind? Peter: We’re wondering whether you’ve ever considered joining forces with another regional provider… Maxine: The thought’s certainly crossed our minds. Peter: Well, then I’d say we have a lot to talk about.

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businessenglishpod Debrief At this point in his conversations with Maxine, Peter has not actually directly brought up the fact that he wishes to buy her company. Until now, he has just been focusing on creating a good atmosphere and establishing common interests. Peter knows that for a merger to succeed, building a good relationship is essential. So he is being careful to lay good groundwork, that is, to establish a strong foundation for his partnership with Maxine. Let’s look in detail at some of the positive language and expressions that Peter uses at the beginning of the dialog: Peter: So, Sam has said a lot about you. Maxine: Only good things, I hope! Peter: Of course. And I’ve been looking at the figures, and I must say I’m very impressed with your company. Maxine: Thanks. Peter: It’s great to finally have the opportunity to meet you. First, Peter mentions a mutual acquaintance, Sam. Next, he uses two phrases to start the conversation off on the right foot, that is, to start it off on a positive basis: First he flatters Maxine on her business – he says, “I’m very impressed with your company.” Second, he says, “It’s great to finally have the opportunity to meet you.” Using this kind of language on the first meeting is often an important element in starting off on the right foot – that is, making a good impression and creating a good atmosphere. Let’s study more phrases that we can use:    

It’s great finally to have the opportunity to meet you in person. I’m grateful for this chance to talk. We’ve heard a lot of great things about you. Your reputation precedes you.

What happens next? Peter and Maxine order their food, and the dialog fades out while they begin eating. For more practice on business meals, we can listen to BEP 96, which deals specifically with this topic, including ordering, recommending dishes, and paying the bill. When the dialog fades back in, Peter is ready to turn the topic of conversation to business. How does he do that in a positive and productive way? He emphasizes the interests that he and Maxine share. Listen again. Peter: So, as I mentioned over the phone, I’m hoping we can explore some mutual interests. Maxine: Yes, we certainly have overlapping concerns. “I’m hoping we can explore some mutual interests…” is a great way of bringing up the topic of possible cooperation; since the emphasis is not only on my own aims but rather on common goals, this kind of language helps establish a feeling of shared benefit. Considering the other party’s benefit expresses “you-attitude” – instead of focusing on me, I start off by considering you. The “you-attitude” – that is, taking a genuine interest in the other person – is useful in establishing

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Successful Negotiations trust and building rapport in a relationship. Let’s listen to some more examples of using a “you-attitude” to explore mutual needs.      

What direction are you taking your business? What would be an ideal outcome for you? What are the top five things you value most in a business relationship? What do you like most about your current supplier, and what would you like to change? What are you hoping to achieve in the next year? What are your medium and long-term goals?

After Peter has turned the conversation to business by exploring mutual needs, how does the dialog continue? Maxine agrees with Peter that they have overlapping or shared interests. Maxine: Yes, we certainly have overlapping concerns. Peter: Obviously, the big one is how to remain competitive in the face of pan-European providers. Having opened the topic of business, Peter and Maxine now emphasize a common interest that will form the basis of his relationship with Maxine: How to remain competitive in the face of pan-European providers. “Pan” means “all,” a “providers” means competing service providers, like Peter’s and Maxine’s companies. So, Peter is talking about competition from larger, Europe-wide companies that sell ring tones and games. Thus, Peter and Maxine can say that their major overlapping concern is how to remain competitive in the face of larger providers. Peter and Maxine use these phrases to establish common interests. Let’s review some more types of useful expression for this purpose:    

We have a lot of common ground. There are definitely many areas where our interests are aligned. There is great potential for synergy between our two businesses. Our needs in this area complementary, don’t you think?

How does the dialog continue to develop? Maxine agrees with Peter about the threat they jointly face from larger competitors, doesn’t she? Maxine: Sure. The trend is definitely towards consolidation. In this context, consolidation refers to smaller companies merging or being bought to form larger companies. The positive response that Peter is getting from Maxine is, of course, due to his focusing specifically on clear areas of common interest. Next, Peter takes advantage of this positive response to build on the good atmosphere by emphasizing solidarity. Solidarity is, as Peter puts it, the feeling that we are in this together. It is the basis of loyalty and trust. Listen again.

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businessenglishpod Peter: The way I see it, we’re in this together. We have everything to gain by banding together. To band together similarly means to form a strong group. Giving emphasis to feelings of togetherness and solidarity is an effective method of building a strong relationship. Listen to some more useful language:   

Our long-term partnership can only contribute to the success of both our companies. This is a great chance to forge an even closer and more productive working relationship. By working closely together, we can achieve great things.

As their conversation continues, it’s now Maxine’s turn to ask Peter for clarification about what exactly he is thinking of: Maxine: What do you have in mind? Peter: We’re wondering whether you’ve ever considered joining forces with another regional provider… Peter asks Maxine if she has ever considered joining forces. This is the most direct reference that Peter makes to a merger during the dialog. To join forces is an idiom that comes from military language. The original meaning is to merge armies. We can use this expression with the preposition with – for example, to join forces with someone. Here are some more examples with this phrase:  

Because we faced such fierce competition from larger companies, I suggested joining forces with some of our competitors. Originally, they were on opposite sides; but then, when they faced a common enemy, they joined forces to defeat their competitor.

How does Maxine respond to Peter’s suggestion that they should join forces? Maxine: The thought’s certainly crossed our minds. Peter: Well, I’d say we have a lot to talk about. To cross one’s mind means to occur to someone. So Maxine is saying that she had actually already been thinking about possibilities for some sort of merger. Peter finishes off the dialog by suggesting a next step – he says, “Well, I’d say we have a lot to talk about.” Of course, in a business discussion it’s not enough just to build the relationship – at some point, we need to take action. Let’s review further expressions for proposing the next step.    

This is an area that’s worth exploring further. Let’s try to hammer out an agreement. Why don’t we get together next Thursday or Friday to talk? The next step, I’d say, is to get all the parties around the same table.

Now, it’s your turn to practice.

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Successful Negotiations First, we’ll review the language of exploring each other’s needs and establishing common ground. Imagine you are in discussions with some potential partners. First you’ll hear a cue prompting you to ask them about their needs. For example, if you hear… Example cue: Directions, taking your business. You can ask, Example answer: What directions are you taking your business? Next, listen to their reply. After they have finished, respond by using a phrase we studied for establishing common ground. For instance you could say, “We have a lot of common ground…” or “Our needs in this area are complementary, don’t you think?” Are you ready? Let’s give it a try. Cue 1: hoping to achieve, next year? Learner 1 – Question:

Partner 1 – Reply: We’re looking to expand into new markets. Learner 1– Response: :

Cue 2: ideal outcome, for you? Learner 2 – Question: ‘ Partner 2 – Reply: We’re hoping to double profits in the next five years. Learner 2 – Response: :

Cue 3: directions, taking your business? Learner 3 – Question:

Partner 3 – Reply: We’re focusing more and more on innovation. Learner 3 – Response: :

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businessenglishpod Now, let’s listen to some example answers. Cue 1: hoping to achieve, next year? Learner 1 – Question: What are you hoping to achieve in the next year? Partner 1 – Reply: We’re looking to expand into new markets. Learner 1– Response: Yes, there’s definitely many areas where our interests are aligned. Cue 2: ideal outcome, for you? Learner 2 – Question: What would be an ideal outcome for you? Partner 2 – Reply: We’re hoping to double profits in the next five years. Learner 2 – Response: Well, there is great potential for synergy between our two businesses. Cue 3: directions, taking your business? Learner 3 – Question: What directions are you taking your business? Partner 3 – Reply: We’re focusing more and more on innovation. Learner 3 – Response: Our needs in this area are complementary, don’t you think? Practice 2 Next, we’ll review some of the useful vocabulary and collocations that we studied in this episode. You’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence saying the missing word. For example, if you hear… Example cue: It’s great finally to have the to meet you in person. You can say: Example answer: It’s great finally to have the opportunity to meet you in person. After each response, we’ll play the correct answer. Let’s begin. Cue 1: I’m for this chance to talk. Learner 1: Cue 2: This is a great chance to an even closer relationship. Learner 2: Cue 3: By working closely together, we can great things. Learner 3: Cue 4: They joined with each other to defeat their common opponent. Learner 4: Cue 5: Let’s try to out an agreement. Learner 5:

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Successful Negotiations Answer 1: I’m grateful for this chance to talk. Answer 2: This is a great chance to forge an even closer relationship. Answer 3: By working closely together, we can achieve great things. Answer 4: They joined forces with each other to defeat their common opponent. Answer 5: Let’s try to hammer out an agreement. That’s all for this episode on relationship building. We’ve talked about the importance of a “you-attitude”, learned useful idioms, and studied language and expressions for starting off on the right foot, exploring each other’s needs, establishing common interests, emphasizing solidarity and suggesting the next step. See you next time, and thanks for listening!

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businessenglishpod Language Review A. Starting Off on the Right Foot Put the following jumbled sentences in order to review language for starting off on the right foot. Write your correct response into the blank below each group of mixed up words. 1) person it great have to opportunity the to meet you in finally is

2) talk I grateful am for to chance this

3) we things you a lot of great about have heard

4) your you proceeds reputation

B. Exploring Mutual Needs and Establishing Common Interests Review useful collocations by filing in the blanks with words from the box below. taking synergy change outcome complementary medium achieve aligned common value Explore each other’s needs with a you-attitude 1. What directions are you __________ your business? 2. What would be an ideal __________ for you? 3. What are the top five things you __________ most in a business relationship? 4. What do you like most about your current supplier, and what would you like to __________? 5. What are you hoping to __________ in the next year? 6. What are your __________ - and long-term goals? Establishing common interests 1. We have a lot of __________ ground. 2. There are definitely many areas where our interests are __________. 3. There is great potential for __________ between our two businesses. 4. Our needs in this area __________, don’t you think?

Study Strategy On a piece of paper draw a small circle. That circle is yourself. Next, draw several other circles of varying distances from the first to represent the various people, companies, and organizations with whom you have built relationships. The distance represents the closeness of the relationship. After you have finished, consider how all these relationships were formed. Some – like those with your family – you did not choose. Others you have worked hard to form. Give a presentation to a friend or a colleague about the relationships, and use the opportunity to discuss the practices and customs of relationship building in your culture.

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Successful Negotiations Answers Listening Questions 1) No, Peter and Maxine have not Met before. Peter says, “It’s great to finally have the opportunity to meet you.” 2) When Maxine mentions that she and Peter have some overlapping concerns, Peter replies, “Yes, big one is how to remain competitive in the face of panEuropean providers.” “Pan” means “all,” so Peter is concerned about how to compete with larger companies that have all of Europe as their market. 3) Peter is careful about how he approaches the subject of a merger between his and Maxine’s company: He indirectly brings up the topic near the end of the dialog when he asks Maxine, “We’re wondering whether you’ve ever considered joining forces with another regional provider…” He has not at this point clearly indicated that he wishes to buy Maxine’s company, Gamester. Language Review A. Starting Off on the Right Foot 1. It is great finally to have the opportunity to meet you in person. 2. I am grateful for this chance to talk. 3. We have heard a lot of great things about you. 4. Your reputation proceeds you. B. Exploring Mutual Needs and Establishing Common Interests Explore each other’s needs with a you-attitude 1. What directions are you taking your business? 2. What would be an ideal outcome for you? 3. What are the top five things you value most in a business relationship? 4. What do you like most about your current supplier, and what would you like to change? 5. What are you hoping to achieve in the next year? 6. What are your medium- and long-term goals? Establishing common interests 1. We have a lot of common ground. 2. There are definitely many areas where our interests are aligned. 3. There is great potential for synergy between our two businesses. 4. Our needs in this area complementary, don’t you think?

Online Activities – Flash Quizzes

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businessenglishpod Online Activities:

MP3 Podcast:

BEP 404 – Getting Started This is part of an ongoing series on negotiations. In this episode, we’ll study how to open a traditional commercial negotiation between buyer and seller. 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 harbor project. A harbor 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.

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?

3) Paul asks Tony how he will be using the bolts. How does Tony respond?

4) What other option does Paul want to explore with Tony?

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Successful Negotiations Vocabulary Anchor bolts: Large screws that are used to support and connect structural steel columns that are embedded within concrete to give buildings strength. “Using high-quality anchor bolts is essential to making a building earthquake proof.” Harbor project: A harbor is an area used to dock or park boats. In the dialog, a “harbor project” is a construction project near or in a harbor. Personally: Can be used at the beginning of a sentence to mean, “speaking for myself.” “Personally, I think that the project is a bad idea, but others may have other opinions.” Stainless (steel): Steel mixed with chromium to make it resistant to rust (turning red) when exposed to the elements, i.e., exposed to air and water. “Only highest-quality stainless steel is used in surgical instruments.” High-strength: Strong. “We need high-strength rebar for this project because of the large size of the building.” Ksi: Unit of measure for material strength. Short for “kilopounds per square inch.” Refers to the amount of pressure or stress a material can withstand before breaking. Grade 105: Refers to steel that can withstand 105 ksi. Structural steel columns: Support structures made of steel that are embedded, or buried, inside concrete to make buildings strong. “Structural steel columns are used to support large buildings.” To explore an option: To discuss a possibility. “We’d love to have the opportunity to explore options for cooperation with your company.” Resin-coated: Covered with a thin clear layer of protective substance, like glue. “Resin-coated steel is much more resistant to air and water than traditional steel.” To stick with sth. To continue doing sth., even in the face of resistance. “I’m going to stick with the approach I’m using, even though most of you don’t agree.” Treated (steel): Refers to steel which has been through a process to change its properties. Treatments include heating or adding chemical elements. For example, heat treatments strength steel; meanwhile, chromium-treated steel is commonly called “stainless steel.” “We’d prefer to use treated steel in this project because of the very special challenges posed by the harbor environment.” Rebar: Rebar means “reinforcing bar.” Steel rebar forms the framework within concrete columns that anchor bolts are used to connect and support. “In wet environments, rebar rusts easily, so I suggest using stainless for this project.” Exclusivity / exclusive rights: The rights to be the sole agent or seller of a product within a certain market. “They are our exclusive agent in the Philippines; so if we find a product there that was not sold by them, we won’t service it.” To embed sth. in sth.: To bury sth in sth. “Structural steel columns are embedded in concrete to give buildings strength.” Concrete: A mixture of cement (a binding material), substances such as sand or gravel, and water. When it dries, it hardens. “Most modern buildings, bridges, and many other man-made structures are made from concrete.”

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businessenglishpod Dialog Tony: First of all let me thank you for your time, Paul. Paul: Not at all. Thanks for calling. Tony: So I understand that you’re interested in buying some anchor bolts? Paul: That’s right. We’re working on a harbor project, so we need stainless. Tony: I thought we could start by discussing your needs in more detail, then go on to details of price, delivery and so on. Paul: Fine by me. Personally, I’ve only got about a half hour available. Tony: Should be plenty. Paul: Okay. Tony: So if I understand correctly, you are looking for standard 7/8th inch highstrength anchor bolts, 105 ksi. Paul: Yes, grade 105 on this project. Tony: Could you tell us more about how you will be using them? In structural steel columns, I assume? Paul: That’s right. Tony: There’s another option you might want to explore. Have you considered resin-coated? Paul: We thought about that, but we’re using treated rebar, so we’re just going to stick with the same material for the bolts. Tony: Okay… Well, you’ve seen our price list… How many are you considering ordering? Paul: Yes, well, what kind of discount could you give us on a large order…? Tony: That depends… how many are we talking about?

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Successful Negotiations Debrief 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 used to begin their discussion. To start off, Tony, the supplier, demonstrates goodwill to Paul by thanking him for his time: Tony: First of all let me thank you for your time, Paul. 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. Tony: So I understand that you’re interested in buying some anchor bolts? Paul: That’s right. We’re working on a harbor 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 harbor, 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.   

May I begin by saying that we have looked at your quotation very closely. 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? Tony: 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.

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businessenglishpod 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 price.

Does Paul agree to Tony’s agenda? Yes, but he has a suggestion of his own. Paul: Fine by me. Personally, I’ve only got about a half hour available. Tony: Should be plenty. Paul: 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 thirty 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 after an hour for 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: Tony: So if I understand correctly, you are looking for standard 7/8th inch highstrength anchor bolts, 105 ksi. Paul: 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? “Seven-eighths of an inch” refers to the diameter, or width, of the bolt. Ksi is a unit of measurement. It stands for “kilopounds (1000 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 do you mean by that? If I understand correctly, you’re saying that production costs will be much higher than expected. Right. So I think 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?

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Successful Negotiations 

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: Tony: Could you tell us more about how you will be using them? In structural steel columns, I assume? Paul: That’s right. Asking deeper questions to get 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 tell us more about your product’s special features? 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: There’s another option you might want to explore. Have you considered resin-coated? 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:    

I would like to explore a number of options with you. 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 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 concrete columns and anchor bolts connect and support the framework.)

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businessenglishpod What happens next? Tony: Okay… Well, you’ve seen our price list… How many are you considering ordering? Paul: Yes, well, what kind of discount could you give us on a large order…? Tony: 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. [See BEP 51 & 52 for more on vague language.] 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 dialog. We’ve reviewed the language Paul and Tony used to start off the negotiation. Now, it’s your turn to practice. Practice 1 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… Example cue: Delivery terms You can say … Example answer: Could you tell us more about your delivery terms? Other useful expressions include, “Could you go into more detail on…,” 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.

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Successful Negotiations Cue 1: Special offers Learner 1: Cue 2: Discount on a large order Learner 2: Cue 3: Exclusive rights in this market Learner 3:

Answer 1: Could you tell us more about any special offers you have? Answer 2: What kind of discount can we get on a large order? Answer 3: Would it be possible to negotiate exclusive rights in this market? Practice 2 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… Example cue: What exactly do you by that? You will say… Example answer: What exactly do you mean by that? After each response, we’ll play the correct answer. Cue 1: First of all let me give you some on our proposal. Learner 1: Cue 2: Before we go on, could we on procedure? Learner 2: Cue 3: There are a of ways to look at this. Learner 3: Cue 4: We have three main issues we’d like with you today. Learner 4: Cue 5: We are dedicated to a lasting relationship. Learner 5: Cue 6: That … can you tell me more? Learner 6:

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businessenglishpod Answer 1: First of all let me give you some background on our proposal. Answer 2: Before we go on, could we agree on procedure? Answer 3: There are a number of ways to look at this. Answer 4: We have three main issues we’d like discuss with you today. Answer 5: We are dedicated to building a lasting relationship. Answer 6: 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. Thanks for listening and see you next time!

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Successful Negotiations Language Review A. Starting Off, Agenda, and Ground Rules Review useful language by filling in the blanks with the words in the box below. solution

issues

details

term

discuss

interrupt

understand

procedure

committed

break

1. We

are

___________

to

being

your

partner

in

developing

long-

_________, mutual value. 2. We ___________ that you are looking for a _________ to this problem. 3. We have three main __________ we’d like ___________ with you today. 4. I was thinking we could start by discussing the __________ of the order, then moving on to price. 5. Before we go on, could we agree on ___________? 6. Why don’t we ___________ after an hour for lunch? 7. Please feel free to ____________ me at any time if you have any questions. B. Exploring Possibilities Put the jumbled sentences in order to practice useful phrases for exploring possibilities. 1. would like number explore a options of you with I to

2. there are a number look of to this at ways

3. think are at a possibilities number of I we there suggest looking would

4. sure am we some can ground find I common

Study Strategy What kind of vendors are important to keeping your business or office running? Do you or any of your colleagues have to negotiate with them. If you conduct these kinds of negotiation yourself, think of your last negotiation. How did it begin? If you aren’t involved in these kinds of negotiation, interview a friend or colleague who is. In either case, use the real situation to write a dialog. Employ the language we have studied in this episode. Role play with a friend.

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businessenglishpod Answers Listening Questions 1) To establish goodwill, Tony starts by thanking Paul for his time. Thirty minutes. Paul says, “Personally, I’ve only got about a half hour available.” The bolts will be used in structural steel columns. As discussed earlier, they are for a harbor project. Paul asks Tony if he has considered using “resin-coated” bolts instead of stainless steel bolts. Resin is a clear coating on the steel that makes it resistant to the elements, that is, water and air. Language Review A. Starting Off, Agenda, and Ground Rules 1. We are committed to being your partner in developing long-term, mutual value. 2. We understand that you are looking for a solution to this problem. 3. We have three main issues we’d like discuss with you today. 4. I was thinking we could start by discussing the details of the order, then moving on to price. 5. Before we go on, could we agree on procedure? 6. Why don’t we break after an hour for lunch? 7. Please feel free to interrupt me at any time if you have any questions. B. 1. 2. 3. 4.

Exploring Possibilities I would like to explore a number of options with you. There are a number of ways to look at this. I think there are a number of possibilities we would suggest looking at. I am sure we can find some common ground.

Online Activities – Flash Quizzes

(click above to open)

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Successful Negotiations Online Activities:

MP3 Podcast:

BEP 405 – Clarifying and Evaluating Positions Hello my name is Edwin and I’ll be your host for this episode on clarifying and evaluating positions, which is part of our ongoing series on negotiation skills. An important part of any discussion is making our position clear; at the same time, we must make sure we understand the other side’s point of view. Achieving mutual understanding can help us save money by avoiding missed opportunities. In addition, the ultimate goal of any negotiation is to create value. Therefore, evaluation – determining whether an offer or position is good or bad – plays an important role. So in this show we’ll study stating, clarifying, and evaluating positions. Peter is the owner of mobile phone ringtone and game provider, Textacular. He is attempting to roll up, or buy, other small companies like his in an effort to increase the value of his company. Eventually, he wants to sell his business to a larger, regional service provider for a profit. In the listening, he is meeting with Maxine, owner of Gamester, to discuss a possible merger. As you listen, pay attention to how they clarify and evaluate each other’s positions and try to answer the following listening questions.

Listening Questions 1) What’s the basic source of disagreement between Maxine and Peter?

2) What are Maxine’s reasons for insisting on her price?

3) What does Peter mean when he says he has done “months of due diligence?”

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businessenglishpod Dialog Maxine: So in short, we’ve thought about it a lot, and we really can’t budge from our position. Peter: So if I’m getting you right, you won’t be willing to part with Gamester for less than 15 million, right? Maxine: Yes, that’s an absolute minimum. Let me go over my reasons again. Peter: Go ahead. Maxine: For one, this market is going nowhere but up. Peter: Yes, I take your point. Maxine: For another, we’ve got tremendous value here – you’ve seen the figures: good people, good products, and a solid business plan. Peter: I agree. I’ve done months of due diligence, and I’m convinced of the value of a merger. Maxine: I know you are, but we need a fair price for our business. Peter: On my side, though, we must take into account redundancies in our business operations and factor in the volatility in the market.

Vocabulary To evaluate sth: To comment on the value of sth., i.e., whether it is good or bad. “It’s important to evaluate the position carefully before drawing any conclusions.” To (not be able to) budge from a position: To not be able to move even a little bit from a point. “After he said he’d reached his bottom line, he didn’t budge.” To part with sth. (for a price): To sell something (often unwillingly). “He will only part with his favorite car for a very high price.” To be an absolute minimum: To be the very lowest (price or number, etc.). “That’s an absolute minimum – I can’t go lower than that.” To be going nowhere but up: To have potential. To be growing or expanding. “This business is going nowhere but up.” To have tremendous value (for/to s/o): To be extremely valuable. “My experience in the army has tremendous value for me.” Business plan: A detailed strategy for conducting business. “We drew up a business plan before we went to investors to get money.” To do due diligence (on sth.): To research carefully (especially a large purchase) “It’s essential to do thourough due diligence before any merger.” To be very firm on/about sth.: To be very sure about sth.; to be committed to a position. “They are very firm on price, so we’re going to have to look for concessions elsewhere.” To insist on sth.: To continue to ask for or believe in sth., even when other people oppose it. “I must insist on early delivery, even if it will increase your production costs. To tie up loose ends: Refers to taking care of minor details. “Everything looks good – there are just a few minor loose ends to tie up.” To leave a lot to be desired: Negative evaluation; means to fall short of expectations. “I thought her presentation left a lot to be desired.”

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Successful Negotiations Debrief Maxine has stated her position and justified her point of view. Meanwhile, Peter has been careful to confirm that he correctly understands her stance. Both Maxine and Peter evaluate the other side’s demands. Although they have a disagreement, Maxine and Peter are communicating clearly. Let’s take a close look at the language they use to create a frank discussion. The dialog begins with Maxine making a very clear statement of her position: Maxine: So in short, we’ve thought about it a lot, and we really can’t budge from our position. Maxine opens by saying, “We’ve thought about it a lot…” This both shows Peter that she has seriously considered his offer and indicates that she is very firm. Can’t budge means can’t move, even a little bit. So, Maxine means she is holding on to her position. At this stage in the negotiation, making clear statements of our position can help save time and avoid misunderstanding. Let’s look at some more examples. First, let’s study language for making a strong statement:  

Frankly, I must say that we have to be very firm on this point. We have to insist on our point of view.

To be very firm on something and to insist on something are both ways of strongly stating your position. But what if you need to be more careful?   

At first sight, this appears to be an untenable position for us. It seems to me that this is an area where it would be very helpful for you to make a concession. I would not like you to think that we are being inflexible.

To make a concession means to give up something in return for something else. Meanwhile, to be flexible means to be able to change your position. So inflexible is the opposite – to be very firm. How does the conversation between Peter and Maxine continue? At this point, Peter makes sure that he has completely understood Maxine’s point of view. Peter: So if I’m getting you right, you won’t be willing to part with Gamester for less than €15 million, right? “So if I’m getting you right” is a way of clarifying the other party’s position. Peter wants to confirm that Maxine won’t be able to part with, or sell, her company for less than 15 million.

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businessenglishpod It’s always important to clarify the other party’s position, but never more so when we disagree. Misunderstandings can cost lots of money because they may cause us to miss opportunities to solve the problem. Let’s study more clarifying language.    

If I understand the position correctly, you are looking for better credit terms, am I correct? As we see it, this is the position at the moment: How do you see our objectives? Can I just summarize our positions as I see them?

So, Peter has confirmed that Maxine will not sell for less than €15 million. How does she reply? Maxine: Yes, that’s an absolute minimum. Let me go over my reasons again. Peter: Go ahead. Maxine: For one, this market is going nowhere but up. Peter: Yes, I take your point. Maxine says that €15 million is an absolute minimum – she is signaling that this is her bottom line, or lowest possible selling price. Then she offers to go over or review her reasons. The first reason is that the”market is going nowhere but up.” In other words, the market is continuing to expand, and the future looks bright. In negotiation we often need to give good reasons to justify or explain how we reached our position. The more convincing our reasons our, the easier it will be to get the other side to make concessions. What are some other phrases we can use to give reasons?    

Let me explain why we have reached this conclusion, I also have to take into account many other factors. There are several aspects to this situation. I’d just like to briefly run through seven points that explain our position on this.

Next, Maxine continues to discuss her reasons for staying firm on 15 million. Maxine: For another, we’ve got tremendous value here – you’ve seen the figures: good people, good products, and a solid business plan. Peter: I agree. I’ve done months of due diligence, and I’m convinced of the value. Maxine: I know you are, but we need a fair price for our business. In this passage, Maxine is evaluating – judging the value of – her business. She says she’s got “tremendous value here” as well as “good people, good products, and a solid business plan.” Peter agrees – he has done “months of due diligence”

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Successful Negotiations and is “convinced of the value.” To do due diligence on something means to do careful research. Remember, the ultimate goal of negotiation is to create value. Therefore, evaluation – that is, appraising whether an offer or position is good or bad – plays a central role in every discussion. Can you think of other language that can be used to evaluate a position? First, let’s go over some examples of positive evaluations:   

Despite a couple points of minor disagreement, the arrangement under discussion obviously has a lot to offer both sides. Though there are still a couple of loose ends to tie up, we feel overwhelmingly positive about the compromise that we’ve reached. This is a good offer – no doubt about it.

To tie up loose ends refers to taking care of minor details. That’s all for positive evaluations. Now what can we say if we wish to negatively evaluate something?   

Honestly, this offer leaves a lot to be desired, in our point of view. We’ve looked at the figures closely, and I can’t say that we currently have a very high appraisal of this deal. At this point, I think it’s really tough to see where the value is for our side.

To leave a lot to be desired is a bad evaluation … it means to fall short of expectations. As the dialog finishes, Maxine acknowledges that Peter is convinced of the value of a merger, but she says she needs a “fair price for her business.” We hear from the tone of Peter’s reply that he is not yet ready to increase his offer. In the next episode, Declining an Offer, we’ll be returning to this dialog to see how Maxine and Peter’s conversation develops. Now, let’s practice the skills and language that we have covered today. First, let’s practice stating and clarifying positions. Imagine you are in talks with the owner of a company that you’d like to buy. First, you will hear a cue outlining your position and telling you whether you should state it strongly or carefully. After the beep, use the cue to make a sentence with the language we have studied in this episode. For example, if you hear… Example cue: Pay no more than $15 million, strong. You can say something like… Example learner – statement: Frankly, I must say that we have to be very firm on our offer of $15 million. Next, the other side will reply, his or her statement is not completely clear. After the beep, use one of the phrases we have learned to clarify.

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businessenglishpod For instance, if you hear… Example reply: Honestly, this offer leaves a lot to be desired. You can say… Example learner – clarification: So you’re saying you can’t accept $15 million, right? Other language you can use for clarifying includes… “So if I’m getting you right….” “So If I understand correctly…” or “So as I see it, this is the position at the moment.” Are you ready? Give it a try: Cue 1: You should make a concession, careful Learner 1 – statement: Reply 1: Well, at this point, we’re just not prepared to change our position. Learner 1 – clarification:

Cue 2: Complete the deal before the end of the year, strong Learner 2 – statement: Reply 2: Though there are still a couple of loose ends to tie up, that’s a definite possibility. Learner 2 – clarification:

How’d that go? Let’s now listen to some example answers. Keep in mind, though, there are many possible correct responses. Cue 1: You should make a concession, careful Learner 1 – statement: It seems to me that it might very helpful if you made a concession. Reply 1: Well, at this point, we’re just not prepared to change our position. Learner 1 – clarification: So, if I understand correctly, you’re not prepared to make any concessions, right? Cue 2: Complete the deal before the end of the year, strong Learner 2 – statement: From our side, we must insist on finishing the deal before the end of the year. Reply 2: Though there are still a couple of loose ends to tie up, that’s a definite possibility. Learner 2 – clarification: So, if I’m getting you right, you feel that it’s possible to complete the deal before the end of the year.

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Successful Negotiations 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… Example cue: We have to on our point of view. You will say … Example answer: We have to insist on our point of view. We’ll play an example answer after each exercise. Are you ready? Let’s begin. Cue 1: Frankly, I must say that we have to be very on this point. Learner 1: Cue 2: At first sight, this appears to be an position for us. Learner 2: Cue 3: Let me explain why we have this conclusion. Learner 3: Cue 4: I also have to take into many other factors. Learner 4: Cue 5: There are still a couple of loose ends to up. Learner 5: Cue 6: Honestly, this offer leaves a lot to be , in our point of view. Learner 6: Answer 1: Frankly, I must say that we have to be very firm on this point. Answer 2: At first sight, this appears to be an untenable position for us. Answer 3: Let me explain why we have reached this conclusion. Answer 4: I also have to take into account many other factors. Answer 5: There are still a couple of loose ends to tie up. Answer 6: Honestly, this offer leaves a lot to be desired, in our point of view. That’s all for this episode. We’ve studied stating our position, justifying our stance with reasons, clarifying the other side’s point of view, and evaluating the offer.

Study Strategy Play the “clarifying game” with a friend, colleague, or learning partner. Take turns reading aloud passages from a report or a newspaper. When you come to numbers or important details, whisper so that your partner cannot hear you clearly. He or she should interrupt and clarify.

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businessenglishpod Language Review A. Useful Language Review useful language by filling in the blanks with words from the box. appraisal

desired

tough

good

loose

see

summarize

discussion

objectives

correctly

Clarifying positions 1. If I understand the position ___________, you are looking for better credit terms, am I correct? 2. As we ___________ it, this is the position at the moment: 3. How do you see our ___________? 4. Can I just _____________ our positions as I see them? Evaluating the position: Positive 5. Despite a couple points of minor disagreement, the arrangement under ____________ obviously has a lot to offer both sides. 6. Though there are still a couple of ____________ ends to tie up, we feel overwhelmingly positive about the compromise that we’ve reached. 7. This is a _____________ offer – no doubt about it. Negative 8. Honestly, this offer leaves a lot to be _____________, in our point of view. 9. We’ve looked at the figures closely, and I can’t say that we currently have a very high ____________ of this deal. 10.At this point, I think it’s really ___________ to see where the value is for our side. B. Giving Reasons Put the jumbled sentences in order to practice useful phrases for giving reasons. Write the correct responses in the gaps below the jumbled words. 1. we me let why conclusion have reached explain this

2. I have also other to into take account factors many

3. several are this aspects situation to there

4. I this like to run through seven briefly points position explain that our just on would

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Successful Negotiations Answers Listening Questions 1) The basic source of disagreement between Maxine and Peter is price – Maxine will not sell business for less than €15 million; Peter “can’t do better than,” that is, can’t offer more than €11.5 million. 2) Maxine says that the market is going nowhere but up – that is, continuing to expand – and she says that she’s got “tremendous value here – good people, good products, and a solid business plan.” 3) Due diligence refers to doing careful research before a big purchase or other major life decision. Language Review A. Useful Language Clarifying positions 1. If I understand the position correctly, you are looking for better credit terms, am I correct? 2. As we see it, this is the position at the moment: 3. How do you see our objectives? 4. Can I just summarize our positions as I see them? Evaluating the position Positive 5. Despite a couple points of minor disagreement, the arrangement under discussion obviously has a lot to offer both sides. 6. Though there are still a couple of loose ends to tie up, we feel overwhelmingly positive about the compromise that we’ve reached. 7. This is a good offer – no doubt about it. Negative 8. Honestly, this offer leaves a lot to be desired, in our point of view. 9. We’ve looked at the figures closely, and I can’t say that we currently have a very high appraisal of this deal. 10.At this point, I think it’s really tough to see where the value is for our side. B. 1. 2. 3. 4.

Giving Reasons Let me explain why we have reached this conclusion. I also have to take into account many other factors. There are several aspects to this situation. I would just like to briefly run through seven points that explain our position on this.

Online Activities – Flash Quizzes

(click above to open)

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businessenglishpod Online Activities:

MP3 Podcast:

BEP 406 – Declining an Offer while Maintaining Goodwill 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. Eventually, Peter wants to sell his business to a larger, regional service provider for a profit, so he is attempting to roll up or buy other small companies to increase the value of his business. But Maxine wants €15 million 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.

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?

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Successful Negotiations Vocabulary To take into account: To consider. “We need to take into account volatility in the market.” Redundancies in sth.: (Often useless) repetition or overlap. (Can also refer to lay offs – To make s/o redundant means to fire him or her.) “A merger is possible, but there are a lot of redundancies in our business model, so it’s going to be necessary to make cuts.” To factor in sth.: To consider or include sth. in your thinking. “We should factor in the price of oil when we draw up our business plan.” Volatility in sth.: Volatility refers to quick or unexpected changes in price and values, for example in stock prices, in a market, or in a industry. “Such high volatility in the market can make it difficult and risky to put a value on a company.” Synergies (in sth.): Ways in which the whole is greater than the sum of the parts (1 + 1 is greater than 2). “Experienced negotiators search for synergies in order to make a deal that creates value for all sides.” To outweigh sth.: To be more important than sth. “At this point in our growth, the need for steady development outweighs the need to take risks.” To run the numbers (on sth.): To make the calculations. “We ran the numbers on the merger, and we think their stock price is way overvalued.” The way a deal is structured: Detailed arrangements of a business transaction, including, for example, credit terms, payment period, timing, and so on. “The way a deal is structured is sometimes more important than the price being offered.” There’s no two ways about it: There’s no alternative interpretation, no different way of looking at it. “There’s no two ways about it – we’ve reached an impasse.” To resolve differences: To solve problems or overcome disagreement. “We encountered blockage early on, but later we were able to resolve our differences.” To reach an impasse: To encounter an obstacle or blockage. “We couldn’t agree on price, so we reached an impasse there.” To be too rich for someone’s blood: To be too expensive for someone. “I’m sorry – I can’t pay that much. It’s too rich for my blood.”

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businessenglishpod Dialog [Part 1 of the dialog from BEP 405] Maxine: So in short, we’ve thought about it a lot, and we really can’t budge from our position. Peter: So if I’m getting you right, you won’t be willing to part with Gamester for less than 15 million, right? Maxine: Yes, that’s an absolute minimum. Let me go over my reasons again. Peter: Go ahead. Maxine: For one, this market is going nowhere but up. Peter: Yes, I take your point. Maxine: For another, we’ve got tremendous value here – you’ve seen the figures: good people, good products, and a solid business plan. ------------------------------Peter: I’ve done months of due diligence, and I’m convinced of the value of a merger. Maxine: I know you are, but we need a fair price for our business. Peter: On my side, though, we must take into account redundancies in our business operations and factor in the volatility in the market. Maxine: As you know, we think the synergies will outweigh all that. Peter: Yes, but we’ve run the numbers, and, depending on how the deal is structured, I can’t do better than €11.5 million. Maxine: Well, there’s no two ways about it. That doesn’t give us much more to talk about. Peter: Well, I’m really sorry to hear you put it that way. I was really hoping we would resolve our differences. Maxine: Yes, but, anyhow, I think we should explore other possibilities for working together. Peter: Absolutely. I look forward to it.

Debrief 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 dialog starts off with Peter giving his reasons for not being able to pay Maxine’s price of €15 million. Peter: On my side, though, we must take into account redundancies in our business operations and factor in the volatility in the market. Maxine: 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,

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Successful Negotiations 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 + 1 is greater than 2. How does Peter reply to Maxine? He makes his best offer. Let’s listen again. Peter: Yes, but we’ve run the numbers, and, depending on how the deal is structured, I can’t do better than €11.5 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 €11.5 million”. 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. Maxine: Well, there’s no two ways about it. That doesn’t give us much more to talk about. “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.

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businessenglishpod 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 dialog, Peter replies by expressing regret that he and Maxine were unable to reach agreement. Peter: 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 defuse or relax the situation. Then, he ends on a positive note – he says, “I was really hoping we would resolve their differences.” 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. Maxine: Yes, but, anyhow, I think we should explore other possibilities for working together. Peter: 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 opinions, we are committed to a long-term partnership. Your support means a lot to us.

Practice 1 Now, let’s practice some of what we have 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.

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Successful Negotiations For example, if you hear: 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… Face it. We’re wasting our time. And you can respond by saying something like this: I’m sorry to hear that you feel that way. Are you ready? Let’s give it a try. Exercise 1 Example cue 1: Cannot bend further. Example learner 1 – final offer:

Example client 1 – dissatisfaction: Frankly, we’re not satisfied with the offer on the table. Example learner 1 – regret:

Now, let’s try it again. Exercise 2 Example cue 2: Already as far as we can move. Example learner 1 – final offer: Example client 2 – dissatisfaction: Unless your side takes a different approach, at this point I just don’t see any clear way forward. Example learner 1 – regret:

Great. Now listen to the example answers.

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businessenglishpod Answer 1 Example cue 1: Cannot bend further. Example learner 1 – final offer: That’s our final offer. If we bend any further, we won’t be making any money. Example client 1 – dissatisfaction: That’s just too rich for our blood. We seem to be wasting our time. Example learner 1 – regret: I’m sorry to hear that you put it that way. Answer 2 Example cue 2: Already as far as we can move. Example learner 2 – final offer: We’ve already made many concessions. That’s already as far as we can move on this point. Example client 2 – dissatisfaction: Unless your side takes a different approach, at this point I just don’t see any clear way forward. Example learner 2 – regret: It’s too bad that we see things differently on this issue. Practice 2 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. Cue 1: That’s way too for my blood. Learner 1: Cue 2: We’ve reached an because we can’t agree on price. Learner 2: Cue 3: There’s no two about it – we’re just going to have to accept the deal. Learner 3: Cue 4: At this point, our need for cash the risk of taking out a loan. Learner 4: Cue 5: We should in the price of oil in our business plan. Learner 5: Cue 6: High in the market makes it risky to put a value on a company. Learner 6:

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Successful Negotiations Answer 1: That’s way too rich for my blood. Answer 2: We’ve reached an impasse because we can’t agree on price. Answer 3: There’s no two ways about it – we’re just going to have to accept the deal. Answer 4: At this point, our need for cash outweighs the risk of taking out a loan. Answer 5: We should factor in the price of oil in our business plan. Answer 6: High volatility in the market can makes it risky to put a value on a company. 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.

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businessenglishpod Language Review A. Negotiation Dialog Brenda and Mitch are both owners of mid-sized recycling companies. Brenda is negotiating the sale of a business unit in her company to Mitch. To review the skills and language practiced in this episode, put the following negotiation dialog in order. The first one has been done for you. After you have finished, identify the function of each phrase, i.e., stating your position, clarifying positions, giving reasons, evaluating positions, making a final offer, expressing dissatisfaction, or maintaining goodwill. (There are two examples of maintaining goodwill – all others are only represented by one dialog phrase.) Brenda: Frankly I must say that we have to be very firm on this point.

1. (Stating your position)

Mitch: That’s just too rich for our blood. Mitch: Well, if the number is 11 million, I think it’s really tough to see where the value is for our side. Brenda: I’m sorry to hear that you put it that way. Brenda: That’s our final offer. That’s already as far as we low as we can go at this point. Mitch: Obviously, though, there are other areas where we’ll be able to work together. Brenda: Yes, and let me be clear about my reason – as I’ve said before, I don’t think you are putting a proper price on our assets. Brenda: Yes, I agree. I look forward to further discussions. Mitch: Okay, so as I see it, this is the position at the moment: You can’t accept a penny less than 11 million, but we’re not will to pay more than 10.

B. Expressing Regret and Maintaining Goodwill To review important language for expressing regret and maintaining goodwill, fill in the blanks with words from the box: long support

committed opinions

emphasize feel

work partnership

see frustrating

1. I’m sorry to hear that you ________ that way. 2. It’s too bad that we __________ things differently on this issue. 3. Well, obviously this is _________ for both sides. 4. Obviously, though, there are other areas where we’ll be able to _________ together. 5. I

would

still

like

to

_________

how

much

we

appreciate

our

___________. 6. Despite our differences of __________, we are __________ to a ___________-term partnership. 7. Your ____________ means a lot to us.

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Successful Negotiations Answers Listening Questions 1. Maxine is not willing to come down on her price because the market is “going nowhere but up,” that is, it is expanding, and because she believes she has got “tremendous value,” that is, “good people, good products, and a solid business plan.” 2. Peter says he must take into account “redundancies” in their business operations and factor in the “volatility” in the market. Redundancies refers to repetition or overlap. Volatility is a measure of quick or unexpected change in price, for example in a company’s stock price or in a market or industry. High volatility can make it difficult and risky to put a value on a company. 3. Near the end of the conversation, Maxine says, “Yes, but, anyhow, I think we should explore other possibilities for working together.” Though they did not reach an agreement about a merger today, she is keeping the door open for further discussions about other possibilities and topics. Language Review A. Negotiation Dialog Brenda: Frankly I must say that we have to be very firm on this point. Mitch: That’s just too rich for our blood.

1. (Stating your position)

Mitch: Well, if the number is 11 million, I think it’s really tough to see where the value is for our side.

4. (Evaluating positions)

Brenda: I’m sorry to hear that you put it that way.

7. (Expressing regret)

Brenda: That’s our final offer. That’s already as far as we low as we can go at this point.

5. (Making a final offer)

Mitch: Obviously, though, there are other areas where we’ll be able to work together. Brenda: Yes, and let me be clear about my reason – as I’ve said before, I don’t think you are putting a proper price on our assets. Brenda: Yes, I agree. I look forward to further discussions.

8. (Maintaining goodwill)

Mitch: Okay, so as I see it, this is the position at the moment: You can’t accept a penny less than 11 million, but we’re not will to pay more than 10.

2. (Clarifying positions)

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6. (Expressing dissatisfaction)

3. (Giving reasons)

9. (Maintaining goodwill)

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businessenglishpod B. 1. 2. 3. 4.

Expressing Regret and Maintaining Goodwill 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. Obviously, though, there are other areas where we’ll be able to work together. 5. I would still like to emphasize how much we appreciate our partnership. 6. Despite our differences of opinions, we are committed to a long-term partnership. 7. Your support means a lot to us.

Study Strategy Think of either a business discussions – for example, with a client or supplier –or real-life negotiation – for example with your boyfriend/girlfriend or spouse. Have you ever encountered conflict? How did you deal with it? Did you leave the door open for future cooperation? Or did you “burn your bridges?” Analyze the situation. Come up with a proposal for how you could have handled it better. Then write a dialogue demonstrating your new approach and practice with a friend, colleague or learning partner. Try to use the language and strategies we have practiced in this episode.

Online Activities – Flash Quizzes

(click above to open)

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Successful Negotiations Online Activities – Preview the new Flash Quizzes: (Click to open)

BEP 407 – Bargaining 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.

Listening Questions 1. What does Paul mean when he says he’ll probably be “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?

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businessenglishpod Vocabulary To bargain (for sth.): To try to get better terms (for sth.) by trading concessions. “We bargained with them all day for a better price.” Swapping / trading concessions: Offering something in return for something else. Somewhere in the ball park of: Approximately. “We would like to hire somewhere in the ballpark of 50 new employees this year.” To throwing some more business s/o’s way: To give someone more business. “Give us a good price, and we’ll be happy to throw more business your way.” List price: The price quoted in the catalog (before discount). “The list price is $750, but we should be able to get you a discount on that.” To toss sth in (to the offer): To include sth in the offer. (Also “to throw sth. in.) “We’ll toss in free delivery with an order of over 100,000 pieces.” Fierce competition: Intense competition. “Fierce competition is driving down prices.” Tight (profit) margins: A profit margin is the amount of profit we make on a deal. Tight margins refers to very little profit. “We’re operating on very tight margins, so taxes and duties hurt us a lot.” To combine purchases: To put two purchases together. “By combining our purchases, we’ll be able to get a higher discount.” Specifications: (Technical) details; requirements. “Please give us your exact specifications, and we will manufacture the model accordingly.” (Binding / non-binding) letter of intent: A preliminary, or beginning, agreement that describes the terms for a future final contract. Letters of intent can be binding – that is, it is legally required to follow the agreement – or non-binding – that is, either party may break the agreement without legal consequences. To check with s/o: To make sure something is okay with someone. “Please check with your boss before you go on break.” Prompt payment: Payment on time or within a specific deadline. “We have a discount for prompt payment – if you pay within two weeks of delivery, you can get 5% off.” You drive a hard bargain! “You are a tough negotiator.” (Used to praise someone or let them know they are getting a good deal. “You drive a hard bargain, but I think I can agree to that.” To expand rapidly: To grow quickly. “Our business is expanding rapidly.” To have one’s hands tied: Not to have any choice. “There’s nothing we can do – we have our hands tied.” To be a bit of a stretch: To be hard to agree to. “I’m sorry, but that’s a bit of a stretch – I don’t think we can agree to that.”

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Successful Negotiations Dialog Paul: Yes, well, what kind of discount could you give us on a large order…? Tony: That depends… how many are we talking about? Paul: For this particular bolt… on this project, something in the ballpark of 8,500. Tony: Okay. Paul: 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. Tony: I understand. If you order over 10,000, I can give you an 8% discount off the list price. Paul: I see. And what kind of discount can we get on eighty-five hundred? Tony: Probably only around 3%, but we can toss in another 2% discount if you pay within one week of delivery. Paul: Actually, I was hoping for a little more help from you… We are evaluating other suppliers. Tony: 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. Paul: We’re not sure of the specifications yet. But what if we sign a letter of intent to use you as the supplier for that project too? Could you consider giving us an 8% discount then? Tony: Yes… that might be possible. I’d have to check with the head office. Paul: And with the 2% discount for the prompt payment, we’re talking about 10% off your list price for 8,500. Tony: You drive a hard bargain! Paul: We’ve got an excellent reputation, and we’re expanding rapidly. I’m sure we’ll be giving you more business in the future. Tony: Well, let me check and call you right back. Paul: Okay, sounds good.

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businessenglishpod Debrief 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 ball park 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. Paul: 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. Emphasizing possibilities for further cooperation is an important technique for getting a better deal. What are some other phrases we can use for this purpose?   

We’re looking for a steady supplier. 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? Tony: I understand. If you order over 10,000, I can give you an 8% discount off the list price. Paul: I see. And what kind of discount can we get on 8,500? Tony: Probably only around 3%, but we can toss in another 2% discount if you pay within one week of delivery. List price is the catalog 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.

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Successful Negotiations How does the dialog 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. Paul: 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. Paul: We are evaluating some other suppliers. 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 dialog, how does Tony respond to Paul’s attempt to use pressure on him? He stays very calm, doesn’t he? Tony: 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: He can’t make any money if he offers a higher discount.

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businessenglishpod Tony, therefore, has an idea: Tony: … Why don’t you consider combining your purchases for the two projects? Then we can discuss a bigger discount. “Why don’t you” is a way of suggesting an alternative; “Then we can” describes the benefit. Suggesting alternatives and their benefits is an 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 a 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 10,000 bolts, which will enable him to receive the 8% discount. Let’s listen again to Tony’s reaction. Tony: Yes… that might be possible. I’d have to check with the head office. Tony reacts with a cautious, or 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.   

Okay, 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.

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Successful Negotiations “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 dialog? Having received a cautious agreement from Tony, Paul summarizes the deal: Paul: And with the 2% discount for prompt payment, we’re talking about 10% off your list price for 8,500. Tony: 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 signaling to Paul that he is getting a good deal. How does the discussion finish? First, Paul again emphasizes 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. Tony: Well, let me check and call you right back. Paul: 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 a view on the 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: Example cue: That’s acceptable.

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businessenglishpod This is a strong yes, so we should change it into a soft yes. You can say something like: Example answer: Okay, that might be acceptable. Are you ready? Let’s give it a try. Cue 1 – strong no: My hands are tied – I have to say no. Learner 1 – soft no:

Cue 2 – strong yes: That sounds fine. Learner 2 – soft yes:

Cue 3 – soft no: I’m afraid that might be hard to do. Learner 3 – strong no:

Cue 4 – soft yes: That could be a way forward. Learner 4 – strong yes:

Cue 5 – strong no: I’m sorry, that’s just out of the question. Learner 5 – soft no:

Now, listen to some example answers. Of course there are many possible correct responses. Cue 1 – strong no: My hands are tied – I have to say no. Learner 1 – soft no: I’m afraid that might be a bit of a stretch. Cue 2 – strong yes: That sounds fine. Learner 2 – soft yes: That might be all right. Cue 3 – soft no: I’m afraid that might be hard to do. Learner 3 – strong no: I have to say no, and I’ll give you my reasons. Cue 4 – soft yes: That could be a way forward. Learner 4 – strong yes: Okay, we can agree to that. Cue 5 – strong no: I’m sorry, that’s just out of the question Learner 5 – soft no: That would probably be a little 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.

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Successful Negotiations For example, if you hear… Example cue: We can’t really these conditions. You should say … Example answer: We can’t really accept these conditions. We’ll play an example answer after each exercise. Are you ready? Let’s begin. Cue 1: We’ll probably be some more business your way. Learner 1: Cue 2: Sorry, our are tied. Learner 2: Cue 3: Honestly, we were for better terms. Learner 3: Cue 4: I’d like to with my colleagues before committing. Leaner 4: Cue 5: You a hard bargain! Learner 5:

Answer 1: We’ll probably be throwing some more business your way. Answer 2: Sorry, our hands are tied. Answer 3: Honestly, we were hoping for better terms. Answer 4: I’d like to consult with my colleagues before committing. Answer 5: You drive a hard bargain! That’s all for this episode on bargaining. We’ve studied emphasizing possibilities for cooperation, trading concession and signaling 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. Thanks for listening, and see you next time!

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businessenglishpod Language Review A. Trading Concessions Put the jumbled sentences in order to practice useful phrases for trading concessions. Type the correct responses in the gaps below the jumbled words. 1. I agreed stagger to the if acceptable payments you that more would find

2. help would for it offered if we equipment install to the free

3. give better a will discount and we larger make a order us

4. shipment we can delivery in are if you free accept willing to a later toss

B. Turning on the Pressure To review useful language, fill in the blanks in the phrases below with words from the box. Next, determine whether each statement is an example of signaling for movement, turning on the pressure in a positive way, or turning on the pressure in a strong way. movement

doubtful

accept

little

hoping

rather

enable

go

1. That seems _________ high. 2. Don’t you think that’s a __________ low? 3. Can you __________ a little lower? 4. To reach agreement, we’re going to have to see a little _________ on price. 5. Your lowering the price by just 2% would _________ us to seriously consider the offer. 6. We can’t really __________ these conditions. 7. Honestly, we were __________ for better terms. 8. I’m really __________ whether I can get the other members of my team to agree to this. Study Strategy In your country, what are some things that people bargain for? Are the prices in the shops fixed, or negotiable? How about when you buy a house or a car? Are people in your culture considered good bargainers? What are some typical strategies that people use to get a better deal? Next, with a colleague or a friend, try the following role play: Each of you tries to sell something on your person (a ring, a watch, an article of clothing) to the other person. Afterwards, analyze the results, and compare them to your earlier discussion of bargaining culture.

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Successful Negotiations Answers Listening Questions 1. Paul means that he will probably be able to give Tony more business in the future. He is using this as a negotiating tactic to get a better discount. 2. Tony suggests Paul combine his current order with an order for a future project. This will increase the overall quantity of Tony’s order, and thus will allow Tony to increase Tony’s quantity discount. 3. When Tony says to Tony, “You drive a hard bargain!” he means that Paul is a tough negotiator – for example, Paul has not only asked for a large quantity discount, but also for a prompt payment discount. (Tony also perhaps intends to signal to Paul that he is getting a good deal.) Language Review A. Trading Concessions 1. If I agreed to stagger the payments, would you find that more acceptable? 2. Would it help if we offered to install the equipment for free? 3. Give us a better discount, and we will make a larger order. 4. We can toss in free delivery if you are willing to accept a later shipment. B. Turning on the Pressure Sentences 1 to 3 are signaling for movement; sentences 4 to 5 are turning on the pressure – positive; and 6 to 8 are turning on the pressure – strong. 1. 2. 3. 4. 5.

That seems rather high. Don’t you think that’s a little low? Can you go a little lower? 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. 6. We can’t really accept these conditions. 7. Honestly, we were hoping for better terms. 8. I’m really doubtful whether I can get the other members of my team to agree to this.

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BEP 408 – Restarting Talks In this part of our ongoing series on negotiation skills, we will discuss how to overcome blockage in a negotiation. Usually we think of blockage in terms of stumbling blocks, or obstacles, to agreement. But blockage can also be any impediment to creating maximum value. In other words, we’re not only interested in removing obstacles to a deal but also in removing obstacles to a better deal. Doing this successfully often requires thinking outside the box, that is, thinking creatively. So in this episode, we’ll study overcoming barriers. In particular, we’ll focus on identifying stumbling blocks, exploring alternatives, and moving towards agreement. Recall that Peter, owner of Textacular, has been trying to buy Maxine’s company, Gamester, as part of his strategy to roll up other small businesses. His ultimate goal is to increase the value of his own operation so he can sell it to a larger company for a handsome profit. In previous episodes, Peter had tried to acquire Maxine’s company, but talks reached an impasse when Maxine wouldn’t climb down from or reduce her price of 15 million. In today’s listening, Peter calls Maxine back to restart talks. As you listen, focus on the language they use to remove obstacles to agreement.

Listening Questions 1. How does Peter suggest restarting talks with Maxine?

2. What does Peter identifying as the main stumbling block to a deal?

3. What does Peter mean when he says, “It’s not a question of growth for us, it’s a question of survival.”

4. What is Peter’s key insight that enables Maxine and him to overcome their blockage?

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Successful Negotiations Vocabulary To be open to an idea: To be willing to try or consider something. “He is open to the idea of trying something different.” To be a stumbling block to sth.: To be an obstacle to sth. “Delivery time was a stumbling block to agreement.” To have/to be a great fit (with sth. or s/o): To have/be a good match with sth. or s/o. “I think our two companies are a really good fit with each other.” Overall strategy: The larger plan; the general approach. “Our overall strategy is to get customer’s to buy more products.” Consolidation: Merging of smaller units to form a larger entity. “The trend in many markets is consolidation of smaller companies into larger corporations.” To be a question of survival: To be a critical issue; to be a question of life or death. “At this point, how we react to this crisis is a question of survival.” Big players: Companies, people, etc. that play a large role in a situation. “Their company is a big player in the global steel market.” To drive at sth.: To imply sth. “I’m not exactly sure what you are driving at.” Just for argument’s sake: Used to put something up for consideration without necessarily meaning it completely seriously; this is often a non-threatening way of making a comment or a statement. “Just for argument’s sake, what would you do if I quit my job?” To flip sth. around: To reverse the contents of sth.; to look at sth. from a different point of view. “Let’s just flip this around for a second.” To be something like: To be approximately. “He owes me something like $10,000." To be on to sth.: To be close to finding a solution or to reaching a goal. “I like this new approach – I think we really may be on to something here.” To do footwork (for sth.): To do the hard, detailed work of preparation for something. “Before you propose a business plan to an investor, you need to do all the footwork first.” To be convinced of the value of sth.: To be persuaded by the worth of sth. “He is totally convinced of the value of our proposal.” To run sth. by s/o: To mention sth. to s/o for their review or reaction. “Can you run my idea by your boss – I’d be very curious to hear what he thinks about it.” To come up with a different angle on sth.: To look at sth. from a different point of view. “I don’t really see any way forward, so I think it’s important we start coming up with a different angle on this.” To see/put things in a new/different light.: To look at something from a different point of view. “Why don’t we try to put things in a different light.” To beat around the bush: To avoid talking about the main issue. “Please stop beating around the bush. What are you driving at?” Upshot: The main details or main point. “What was the upshot of the discussion.”

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businessenglishpod Dialog On the telephone… Maxine: Hello, Maxine speaking. Peter: Hi Maxine, it’s Peter. Maxine: Peter – How are you doing? Peter: Fine, thanks. Look, I’ve been thinking about our companies, and if you’re still open to the idea I was wondering if we could get together to talk briefly about some other possibilities. Maxine: Uh… sure. How about next Wednesday? Peter: That’d be fine. What time would be convenient for you? In person… Peter: So, I’ve been thinking a lot, and it seems to me that price is really the only stumbling block to a deal. Maxine: How do you mean? Peter: The potential for a merger looks great – we’ve got a great fit here. And looking at the market, the overall strategy it demands is consolidation. In my opinion, it’s not a question of growth for us, it’s a question of survival. Maxine: The big players are certainly moving in fast. But we’ve been through this before. What are you driving at? Peter: So just for argument’s sake, why don’t we flip it around for a second? Maxine: All right. I’m listening. Peter: If your company is worth €15 million… I was wondering… what do you think your board might be willing to pay for ours…? Maxine: Hmmm… Yours is a little smaller than ours. Probably something like 12.5. Peter: I think we might be on to something here. Maxine: You could be right. We’ve certainly done all the footwork, and I’m convinced of the value of a merger. Peter: Why don’t you run it by your partners? Maxine: I’ll do that, and get back to you next week.

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Successful Negotiations Debrief Peter and Maxine have successfully explored an alternative that appears to remove the main stumbling block to their agreement. Let’s go through their whole discussion in detail to examine the language they use. In the first section of the dialog, Peter calls Maxine to start talks back up. Maxine: Peter – How are you doing? Peter: Fine. Look, I’ve been thinking about our companies, and if you’re still open to the idea I was wondering if we could get together to talk briefly about some other possibilities. After making a little small talk, Peter suggests restarting talks. At this stage, he is quite vague or indefinite about what he has in mind – he says he just wants to “talk about some other possibilities.” This vagueness keeps a casual tone in the conversation that may also help to arouse Maxine’s curiosity. At the same time, Peter uses a lot of very indirect request forms, which has the effect of making his language very polite: He says, “If you’re still open to the idea…” – that is, if you are still willing – “I was wondering if we could get together briefly.” When restarting talks after an earlier failure, using such causal but polite language is a good strategy for getting a positive response. Let’s review some more useful expressions when can use for starting the discussion back up.     

I’ve been thinking, and I’ve come up with a different angle on everything. I think I see things in a new light, and I’d love to talk it over. You are going to be very interested in the new developments, I think. I think you’ll be excited about this new approach. I’ve got a new idea I’d like to run by you.

To come up with or see a different angle on something and to see things in a new light both mean to look at things from a different point of view. To run an idea by someone means to discuss it briefly. Using these types of idiomatic expressions helps create a casual, informal tone. Maxine agrees to talk on Wednesday. As the dialog fades back in, they are meeting in person. What is the first thing that Peter brings up? Peter: So, I’ve been thinking a lot, and it seems to me that the price is really the only stumbling block to a deal. First, Peter identifies the main stumbling block or obstacle to agreement. Before we can remove a barrier, we must mutually recognize it. What are some more useful expressions for identifying obstacles?  The delivery date really seems to be what’s holding us back.  The main issue is payment terms, from what I can tell.  At this point the credit period seems to be the main bone of contention.

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businessenglishpod To be a bone of contention means to be a source of conflict. After Peter has identified the price as the main stumbling block, Maxine asks for further clarification. How does Peter respond? Maxine: How do you mean? Peter: The potential for a merger looks great – we’ve got a great fit here. And looking at the market, the overall strategy it demands is consolidation. In my opinion, it’s not a question of growth for us; it’s a question of survival. Here, Peter lays out his argument for a merger. He has several points: First, there’s a great fit or match between his and Maxine’s companies. Second, the market is trending towards consolidation, that is, smaller companies are merging or being bought up to form larger companies. Third, this market demands or requires smaller businesses to follow the trend in order to survive. As he puts it, “It’s not a question of growth for us; it’s a question of survival.” In other words, the issue is not merely how to grow quickly, but how to keep the businesses alive. But Maxine has heard this all before hasn’t she? Maxine: The big players are certainly moving in fast. But we’ve been through this before. What are you driving at? Maxine agrees with Peter – she sums up his statement by saying, “The big players” – or larger companies – “are moving in fast,” that is, they are developing rapidly, and the competition is getting stronger and stronger. But, as Maxine puts it, she and Peter have “been through all this before,” in other words, they have already talked about these issues before. She wants to know “what he is driving at,” in other words, what is the point he’s trying to make? “What are you driving at?” is a way of drawing someone out, that is, getting someone to be more specific and more direct. Peter has been telling Maxine about his new idea one step at a time to warm her up to the idea, but Maxine wants him to get straight to the point. How else can we draw someone out?    

I’m not quite sure where this is going… Where are you headed with this? Stop beating around the bush – what are you saying? What’s the upshot?

To beat around the bush means to avoid talking about the main issue. Upshot refers to the main details or main point. After, Maxine asks Peter to be more specific, he comes to his main new proposal – the reason he has asked her to meet with him today.

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Successful Negotiations Peter: So just for argument’s sake, why don’t we flip it around for a second? Maxine: All right. I’m listening. Peter: If your company is worth €15 million… I was wondering… what do you think your board might be willing to pay for ours…? Peter is thinking outside the box to explore alternatives. He says, “why don’t we flip it around for a second?” This means, why don’t we look at it from a completely different point of view. What is Peter’s suggestion? He quite literally wants to flip around the role of buyer and seller – if Maxine wants 15 million for her company, how much would she be willing to pay for his? Exploring alternatives is really the heart of handling blockage. This often means trying to see things in a new light or from a different point of view. Let’s go over some more phrases we can use.     

How about we look at this from another angle? Let’s try something different. What about putting this in a different light? There might be another way to approach this. Let’s come at this from a different direction.

How much does Maxine say she would be willing to pay for Peter’s company? Maxine: Hmmm… Yours is a little smaller than ours, probably something like 12.5. Peter: I think we might be on to something here. Here Maxine makes a first tentative or careful offer, and Peter responds positively: To be on to something means to be close to finding a solution or reaching a goal. After we have successfully overcome blockage, the next step is to give a positive reaction to the new proposal. Let’s look at some other language we can use to move towards agreement.     

You’re right. You have a point. I think I can accept that. I think we’ve made some progress. I think I can a way to solving our differences.

What is Maxine’s point of view on Peter’s new proposal? She is cautious, but optimistic… Maxine: You could be right. We’ve certainly done all the footwork, and I’m convinced of the value of a merger. Peter: Why don’t you run it by your partners? Maxine: I’ll do that, and get back to you next week.

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businessenglishpod Maxine is positive but careful not to commit – she says, “You could be right.” She points out that they’ve already “done all the footwork.” “Footwork” refers to preparation work. Maxine is referring to the fact that she and Peter have already researched a merger carefully, so they are prepared to move quickly to a deal. The dialog ends with Peter asking Maxine to take action. He suggests she should run the proposal by her partners, that is, she should ask them what they think about it. Taking action is a critical step in removing obstacles. After we see a potential way forward, we need to make a concrete, or specific, plan for the next step to take. To finish off, let’s review some more useful phrases we can use to take action.     

What’s the next move? Let’s draft up a contract. I suggest the next step is to get everything in writing. Can you fax me a letter of agreement? Please send me a detailed proposal by email.

Now it’s your turn to practice the language we have studied in this episode. First, let’s review identifying obstacles. Imagine you are in a discussion that has reached an impasse. Based on the cues, identify the main stumbling block to agreement. For example, if you hear… Example cue: main issue – payment terms You might say something like… Example answer: The main issue is payment terms, from what I can tell. Other useful language use can use to identify obstacles includes “What seems to be holding us back is…” and “what seems to be the main bone of contention is…” After each exercise, we’ll play an example answer. Are you ready? Let’s give it a try. Cue 1: holding us back – delivery date Learner 1: Cue 2: credit period – bone of contention Learner 2: Cue 3: price – stumbling block. Learner 3:

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Successful Negotiations Answer 1: Delivery date really seems to be what’s holding us back. Answer 2: At this point the credit period seems to be the main bone of contention. Answer 3: As far as I can tell, the only stumbling block to agreement is price. Now, let’s go over some language for exploring alternatives. You’ll hear a series of cues that consist of jumbled or out of order phrases. Repeat the sentence in the correct order. For example, if you hear… Example cue: Flip this around for a second why don’t we You should say… Example answer: Why don’t we flip this around for a second? We’ll play example answers after each exercise. Are you ready? Cue 1: Something different let’s try. Learner 1: Cue 2: from another angle we look at how about this? Learner 2: Cue 3: this from a different direction let’s come at Learner 3: Cue 4: approach this another way to there might be. Learner 4: Answer 1: Let’s try something different. Answer 2: How about we look at this from another angle? Answer 3: Let’s come at this from a different direction. Answer 4: There might be another way to approach this. That’s all for this episode on overcoming blockage, which is part of our ongoing series on negotiation skills. We’ve studied restarting talks, identifying obstacles, drawing someone out, exploring alternatives, moving towards agreement, and taking action. Thanks for listening, and see you back soon.

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businessenglishpod Language Review A. Restarting Talks Review useful language for restarting talks by filling in the blanks with words from the box below. interested developments

come light

angle over

approach run

idea excited

1. I’ve been thinking, and I’ve ________ up with a different _______ on everything. 2. I think I see things in a new ________, and I’d love to talk it ________. 3. You are going to be very __________ in the new ___________, I think. 4. I think you’ll be ________ about this new ___________. 5. I’ve got a new ________ I’d like to _________ by you.

B. Identifying Obstacles and Drawing Someone Out To study phrases for drawing someone out and identifying obstacles, put the following jumbled sentences in order. Type the correct responses in the gaps below the jumbled words. 1. am going sure quite where this is I not

2. are with where you headed this

3. stop bush beating please the around

4. is what upshot the

5. the really delivery seems date to be holding what is back us

6. main issue the is terms payment

7. period the seems credit bone to be the main contention of

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Successful Negotiations Answers Listening Questions 1. He says he has been “thinking about” their companies, and if she is still open to the idea he “was wondering” if they could “get together to talk briefly about some other possibilities.” Overall, the tone of Peter’s suggestion is positive and the content is not too specific. At this point, he is just trying to get Maxine interested. 2. Peter identifies price as the main stumbling block to a deal. 3. Peter describes how the overall market tendency is towards increasing consolidation of companies. He is saying that small companies like his and Maxine’s must merge to have a chance to survive in the new market. 4. Peter’s key insight is that if Maxine values her own company so highly, she will probably value his company highly as well. Since his ultimate goal is to sell out his business for a handsome profit, he may be able to achieve that goal now by selling his company to Maxine. In other words, he thinks outside the box to reverse the roles of buyer and seller in the negotiation. Language Review A. Restarting Talks 1. I’ve been thinking, and I’ve come up with a different angle on everything. 2. I think I see things in a new light, and I’d love to talk it over. 3. You are going to be very interested in the new developments, I think. 4. I think you’ll be excited about this new approach. 5. I’ve got a new idea I’d like to run by you. B. 1. 2. 3. 4. 5. 6. 7.

Identifying Obstacles and Drawing Someone Out I am not quite sure where this is going. Where are you headed with this? Please stop beating around the bush What is the upshot? The delivery date really seems to be what is holding us back. The main issue is payment terms. The credit period seems to be the main bone of contention.

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BEP 409 – Closing the Deal In the concluding episode of our series on business negotiations, we’re going to look at closing the deal. Success! The hard work of negotiation has paid off. You’ve reached agreement. Now it’s time to close the deal. In this episode, we’ll study skills and language for the final stage of the discussion. In particular, we’ll focus on summarizing details, tying up loose ends, reinforcing the relationship and adopting a positive style. We’ll see that the end of talks presents a great opportunity to build stronger partnerships. In this show, we will look at two short dialogs that demonstrate different styles of negotiation. In the first, a construction materials supplier, Tony, calls his customer, Paul, to agree to the terms of a deal. In the second, a general manager, Maxine, calls the owner of another company, Peter, to tell him that her board of directors has agreed to buy his company. As you listen, pay attention to how the deal is closed in both conversations. Try to answer the following listening questions.

Listening Questions 1. In the first dialog, what does the supplier, Tony, want to confirm with his customer, Paul?

2. What kind of positive language do Tony and Paul use at the end of the dialog to reinforce the relationship?

3. In the second dialog, does Maxine say that the board has agreed to Peter’s suggested price?

4. From the conversation, does it sound as though Peter will continue to work at his company through the merger?

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Successful Negotiations Vocabulary Letter of intent: A preliminary, or beginning, agreement that describes the terms for a future final contract. Letters of intent can be binding – that is, it is legally required to follow the agreement – or non-binding – that is, either party may break the agreement without legal consequences. Prompt payment: Payment on time or within a specific deadline. “We have a discount for prompt payment – if you pay within two weeks of delivery, you can get 5% off.” Paperwork: Generally refers to forms; in the context of the dialog, it probably means a contract. “Every day I’ve got loads of paperwork to do.” Samples: Example products. “We’re very interested in your product, so could you send us some samples.” To drop s/o a line: To contact s/o. “It would be great if you could drop us a line next week, either by email or phone – it doesn’t matter.” To come back very favorable on sth.: To return from discussions in favor of sth. “The executive committee met in private and came back very favorable on the proposal to outsource training.” To be amenable to sth.: To be able to agree to sth. “I’m pretty sure he would be amenable to your proposal.” To work out the details: To figure out the fine points. “It sounds like a good plan, but we have a lot of details to work out.” To have a personal interest in sth.: To be personally interested in sth. “We all have a personal interest in environmental protection – this is our only planet, and we all live here.” To see sth. through to a successful conclusion/to the end: To see sth. through means to persist in doing sth. “He didn’t retire until he had seen the deal through to the end.” To be key in/to sth.: To be very important in/to something. “R&D is key to our success.” Transition (from sth. to sth.): The (period of) change from one thing or state to another thing or state. “During the transition from the old owner to the new, we all need to work together to demonstrate what a great team we are.” To be a big winner: To be very successful. “Some people say the big winners in the energy crisis are the oil companies, but their future is uncertain.” To be on the same page (about sth.): To have the same understanding of sth. “He is on the same page about this as we are.” To tie up loose ends: To deal with minor unsolved details. “There’s just a few loose ends to tie up, then we can sign the contract.”

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businessenglishpod Dialogs A. Bolts Tony: Good news. Paul: Great. Tony: Head office has agreed to a 10% discount under the conditions we discussed. Paul: Letter of intent, prompt payment. Tony: That’s correct. Though we just want to confirm that the second order is going to be around the same size as the first. Paul: If anything, bigger. Tony: Great. I’ll have the paperwork sent over later today. Paul: Ok. Yes, and we’ll want to see some samples. Tony: Of course. Paul: Looking forward to working with you. Tony: And please do drop us a line if anything else comes up. Paul: Will do. B. Telecoms Maxine: The board came back very favorably on the proposal. Peter: That’s good news. So they’d be amenable to the price range we discussed? Maxine: That’s right. Of course, we’re going to have a lot of details to work out. Peter: Certainly, and I’d like to help out with it. I have a personal interest in seeing this through to a successful conclusion. Maxine: Definitely. Your experience and knowledge will be key throughout the transition. Peter: Great, well, I really look forward to our further discussions. Maxine: We feel the same way. Everyone thinks this deal is going to be a big winner.

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Successful Negotiations Debrief It sounds like both deals are going to go through, that is, they’re going to be completed successfully. Let’s examine the language the participants use to conclude their agreements. How does the dialog between Peter and Maxine begin? Maxine: The board came back very favorable on the proposal. Maxine calls Peter to tell him about her board of directors’ decision. She says the board “came back,” or returned from discussions, “very favorably on,” that is, in favor of - the proposal to buy Peter’s company. When we close a deal, the first thing we need to do is to announce the good news that we can agree to the other party’s terms. What are some other ways to do this?      

It’s a deal! It’s settled, then. Good news! We can accept this offer. I think this is fair to both sides. Let’s shake hands on it. Good, I think we have an agreement.

After Maxine announces that a deal can be made, Peter summarizes the most important information to make sure he and Maxine have understood each other clearly. Peter: That’s good news. So they’d be amenable to the price range we discussed? Maxine: That’s right. “So…” tells us that Peter is about to start a summary. “Amenable to” means “able to agree to.” Peter is asking if the board was able to agree to the price range, or approximate figure, that he suggested. Now let’s take a look at the first dialog for a moment. How does Paul, the customer, summarize Tony’s terms? It’s even simpler there… Listen again: Tony: Head office has agreed to a 10% discount under the conditions we discussed. Paul: Letter of intent, prompt payment. Tony: That’s correct. Tony says his head office has agreed to a 10% discount “under the conditions we discussed.” Paul wants to confirm these conditions, so he just lists them: “Letter of intent, prompt payment.”

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businessenglishpod Using the single word “so” (as Peter does) or making a list (as Paul does) are two ways of summarizing term. Let’s review some more phrases we can use to make a summary.     

Okay, let’s go over everything one last time. So let’s just run through what we discussed again. Let’s confirm the details of our agreement. To sum up, the terms are 5/10 net 30, payment by bank draft. I’d just like to make sure that we’re all on the same page.

To be on the same page is an idiom that means to have the same understanding. So, both Paul (in the construction dialog) and Peter (in the company merger dialog) have been careful to confirm the details of their arrangements. What happens next in their discussions? Let’s listen again to Peter and Maxine. Maxine: That’s right. Of course, we’re going to have a lot of details to work out. Peter: Certainly, and I’d like to help out with it. Maxine says, we have a lot of details to “work out,” that is, to arrange. Here, Maxine is tying up loose ends, or dealing with any unresolved points of the agreement. With Tony and Paul, there are also loose ends to be tied up. Listen again to how they do it: Tony: … Though we just want to confirm that the second order is going to be around the same size as the first. Paul: If anything, bigger. Tony: Great. I’ll have the paperwork sent over later today. Paul: Yes, and we’ll want to see some samples. Tony: Of course. Paul and Tony have a few points to resolve. To get a quantity discount, Paul had promised to place two orders with Tony – one now and one in the future. Tony “wants to confirm” that the quantity of the second order will be large as the first. Next, Tony promises to send over the paperwork or contracts. Finally, Paul requests samples, that is, example products. Let’s now review some further expressions that we can use to tie up loose ends at the end of a negotiation.    

We just want to confirm that we have agreed on delivery. There are just a couple of loose ends to tie up. There are just a few details to mop up. Let’s get together early next week to draft an agreement.

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Successful Negotiations 

Would you be amenable to signing the contract next week?

Next, in both dialogs, the participants take this opportunity to reinforce – that is, emphasize and strengthen – their positive relationships. In the second dialog, Maxine responds favorably to Peter’s suggestion that he should stay involved throughout the merger. Peter: I have a personal interest in seeing this through to a successful conclusion. Maxine: Definitely. Your experience and knowledge will be key throughout the transition. Peter mentions that he wishes to see the merger through to a successful conclusion. To see something through means to persist with something, even under tough circumstances. Maxine flatters Peter – she says that his experience and knowledge will be key – that is, very important – through the transition, or change of ownership. What about Paul and Tony? How do they reinforce the relationship? Paul: Looking forward to working with you. Tony: And please do drop us a line if anything else comes up. Paul’s phrase – “Looking forward to working with you,” – is a simple and sincere expression of goodwill. Tony then asks Paul to ”drop him a line,” — or contact him — if anything else comes up or he has any questions. This is both an offer of help and a friendly request for more business. Obviously, reinforcing the relationship is an absolutely critical part of closing the deal. Reaching agreement is a great opportunity to build stronger rapport or connections with our partners. Before we move on, let’s listen to some more useful phrases that we can use for this purpose.     

Looking forward to working with you. We really appreciate all the work you’ve put into making this possible. Thank you for your support. We stand to benefit a lot from your experience. We highly value our partnership and look forward to our future cooperation.

Finally, how do the dialogs finish off? In both conversations, the participants finish their discussions promptly. In other words, as soon as they make the agreement, they get out. At the end of a negotiation, it’s usually not a good idea to dwell on or mention negatives and not a good idea to pick up earlier discussions unnecessarily. As the old saying goes, “If it isn’t broken, don’t fix it.” In the construction dialog, Paul simply responds to Tony’s request to “drop him a line” with “Will do.” This warm reply ends the conversation on a good note.

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businessenglishpod In the merger dialog, Maxine finishes off by making a strongly favorable prediction for the future. Peter: Great, well, I really look forward to our further discussions. Maxine: We feel the same way. Everyone thinks this deal is going to be a big winner. Maxine says “everyone thinks the deal is gong to be a big winner,” or a big success. So, we can see how all participants have adopted a positive style to close. Earlier, we mentioned that the completion of a deal is an opportunity to strengthen relationships. One important way to build stronger partnerships is to use positive language. Let’s take a look at some more phrases we can use.    

We are confident that we can provide you top quality at a good value. This is the beginning of great things. We are going to work hard to make this project a success. We look forward to working with you.

Now, it’s your turn to practice. First, let’s study reaching agreement. Imagine you have been in discussions with some potential customers. Finally, you have negotiated terms that everyone can agree to. Using the language in the cue, announce the good news. For example, if you hear: Example cue: accept the offer You can say something like: Example learner – reach agreement: Good news! I’m happy to say we can accept the offer. Then, the customers will respond by summarizing the terms. For example, they will say: Example customer: So you are amenable to the price range we discussed? You should respond positively. For example, you might say: Example learner – positive response: Definitely. We really look forward to working with you on this. Are you ready? Let’s give it at try. Cue 1: reach agreement Learner 1 – reach agreement: Customer 1: That’s good to hear. So a prompt payment discount is no problem? Learner 1 – positive response:

Cue 2: fair to both sides Learner 2 – reach agreement: Customer 2: That’s good to hear. So you can agree to the terms we discussed?

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Successful Negotiations Learner 2 – positive response:

Now, let’s listen to some example answers. Of course, there are many possible correct responses. Cue 1: have an agreement Learner 1 – reach agreement: Great! I think we have an agreement! Customer 1: That’s good to hear. So a prompt payment discount is no problem? Learner 1 – positive response: That’s right. And we are confident that we can provide you top quality and at a good value. Cue 2: fair to both sides Learner 2 – reach agreement: I really think this deal is fair to both sides. Customer 2: That’s good to hear. So you can agree to the terms we discussed? Learner 2 – positive response: Absolutely. I think this is the beginning of great things. Practice 2 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: Example cue: So let’s just run what we discussed again. You should say: Example answer: So let’s just run through what we discussed again. We’ll play an example answer after each exercise. Are you ready? Let’s begin. Cue 1: He is on the same about this as we are. Learner 1: Cue 2: There’s just a few loose to tie up. Learner 2: Cue 3: We won’t give up until we the deal through to a successful conclusion. Learner 3: Cue 4: It sounds like a good plan, but we have a lot of details to out. Learner 4: Cue 5: I’m pretty sure he would be to your price range. Learner 5:

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Answer 1: He is on the same page about this as we are. Answer 2: There’s just a few loose ends to tie up. Answer 3: We won’t give up until we see the deal through to a successful conclusion. Answer 4: It sounds like a good plan, but we have a lot of details to work out. Answer 5: I’m pretty sure he would be amenable to your price range. That’s all for this episode on closing the deal. We’ve seen that reaching agreement presents an opportunity to build stronger partnerships, and we’ve studied summarizing terms, tying up loose ends, reinforcing the relationship, and adopting a positive style. Thanks for listening. See you next time!

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Successful Negotiations Language Review A. Useful Language Review useful language for closing the deal by filling in the blanks in the sentences below. 1. We feel the _______ way. And we are _________ that we can provide you _______ quality at a __________ value. 2. That’s good to __________. But I just want to _________ that early delivery is going to be no ____________. 3. Of course, let’s let the lawyers talk about that. We’re really looking _________ to working with you! 4. Definitely no problem there, though we do have a few __________ to mop up in the contract. 5. Good ___________! It’s a _________. We can __________ this arrangement. B. Dialog Jumble The sentences in Exercise A above form a dialog between Cecilia and Nicole, but the phrases have been jumbled, i.e. placed in the wrong order. Put them into the correct order in the space below. (The words following each bullet point are all said by one person, i.e., sometimes one person says two or three sentences before the other person speaks.) After you’ve finished identify the expressions’ functions, i.e., reaching agreement, summarizing, tying up loose ends, reinforcing the relationship or adopting a positive style. Function Cecilia:

Nicole:

Cecilia:

Nicole:

Cecilia:

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businessenglishpod Study Strategy What are some deals that you dream about closing? Let your imagination go wild. Would you like to buy a mansion, a yacht? How about being in charge of a multi-billion dollar merger? Or perhaps you would like to broker world peace or better international environmental treaties. Whatever deal it is you’d like to close, write a dialog that covers the final stage of the agreement. Take turns role-playing your dialogs with a friend, colleague or learning partner.

Answers Listening Questions 1. Tony wants to confirm that the second order is going to be around the same size (quantity) as the first. 2. Paul says he is “looking forward to working with” Tony. And when Tony tells Paul to “drop us a line if anything else comes up,” (that is, call him if there is any more business), Paul responds positively – he says, “Will do.” 3. Yes. Peter asks Maxine if the board would “be amenable to” – that is, be able to agree to – the price range they discussed. Maxine responds, “That’s right.” 4. Yes, it seems quite likely that Peter will continue to work at his company through the merger. Peter says, he has a personal interest in seeing the merger through to a successful conclusion. Maxine responds that his knowledge and experience will be key throughout the transition, that is, the period of time in which ownership is transferred. Language Review A. Useful Language • We feel the same way. And we are confident that we can provide you top quality at a good value. • That’s good to hear. But I just want to confirm that early delivery is going to be no problem. • Of course, let’s let the lawyers talk about that. We’re really looking forward to working with you! • Definitely no problem there, though we do have a few details to mop up in the contract. • Good news! It’s a deal. We can accept this arrangement. B. Dialog Jumble Cecilia: Good news! It’s a deal. We can accept this arrangement. Nicole: That’s good to hear. But I just want to confirm that early delivery is going to be no problem. Cecilia: Definitely no problem there, though we do have a few details to mop up in the contract. Nicole: Of course, let’s let the lawyers talk about that. We’re really looking forward to working with you! Cecilia: We feel the same way. And we are confident that we can provide you top quality at a good value.

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Successful Negotiations Useful Language BEP 401 – Negotiation Strategy (Part 1) Overemphasis on sth. / to overemphasize sth.  In my opinion, there seems to be an overemphasis on price in our discussions.  If you ask me, we’re overemphasizing delivery time – we should be more focused on quality.  We have to be careful not to overemphasize minor factors. Bargaining chip  Since he was very flexible on warranty period, he used this as a bargaining chip to get concessions on delivery time.  They are obviously using their good relationships with local government as a bargaining chip to try to negotiate exclusive rights to sell our product in this market.  It’s too early in the negotiation to throw away bargaining chips – never give something up without getting something in return! Tactics and strategy  We always have to keep in mind our long-term strategy of building a good relationship.  Tactical concerns include discount and delivery; using this client to establish a relationship in this new market is more of a strategic concern.  It’s time to go beyond just thinking about short-term tactics and start considering long-term strategies. BATNA and bottom line  To determine our BATNA, we have to consider not just the other offers on the table, but also potential buyers that we haven’t yet talked to.  Before you can determine your bottom line, you need to put a value on your best alternative.  Sometimes your best alternative is to do nothing at all.  Several not-so-obvious things go into deciding your BATNA, including the timing of the deal – a bird in the hand may be worth two in the bush. Deal sweeteners  If we’re going to get them to agree to our offer, we’re going to have to think of some ways to sweeten the deal.  Why don’t I sweeten the deal a little by increasing our discount by 1%?  There’s a variety of deal sweeteners that we can use to make buying our company more attractive. Concession, compromise, agreement  If there’s going to be any agreement, it’s necessary for one of us to make a concession.  The only way to reach a compromise is to make a concession.  The negotiation was finally successful when the other party backed down and compromised on a key issue.

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businessenglishpod BEP 402 – Negotiation Strategy (Part 2) Parties and decision makers  It’s not always obvious at first glance who the decision makers are.  Often, there are more than just two parties to a negotiation – deals may be complex, and we must also consider government or shareholder involvement.  It’s important to recognize the real parties to the negotiation and identify the key decision makers. Interests: Where someone is coming from  I don’t think I really understand where he’s coming from on this issue.  We asked them about their motives for the merger to get a feeling for where they were coming from.  It’s not at all clear to me where she is coming from. Synergy  After many mergers, the promised synergies fail to materialize, often because of cultural and management differences.  A lot of what we are doing in negotiation is looking for synergies between our companies.  Identifying synergy effects requires creative thinking. To think outside the box  I particularly admire his ability to think outside the box – he’s very original.  In many tough negotiations, it can really help if there is someone on both sides who can think outside the box.  Often, finding and creating value requires thinking outside the box. Overcoming blockage: Removing barriers, obstacles and impediments  It was a real challenge to remove the barriers that had been set up, but in the end we succeeded.  Overcoming blockage is a process of getting rid of obstacles in the road to an agreement.  A typical impediment to compromise is an overemphasis on price. To be a blessing or a curse  Fierce competition can be both a blessing and a curse.  Time constraints can be a blessing and a curse – both speeding things along and causing people to give up without reaching agreement.  Having a clear bottom line can be both a blessing and a curse – it’s often better to be fairly flexible in your approach. Business ethics: Potential value  Corporate social responsibility is an area of great potential value to companies these days, since it can help companies build brand image and loyalty.  More and more companies are recognizing the potential value of environmental protection.  There is good evidence that expanding and protecting shareholder rights actually can have a positive effect on stock price.

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Successful Negotiations BEP 403 – Building Relationships Starting off on the right foot  It’s great finally to have the opportunity to meet you in person.  I’m grateful for this chance to talk.  We’ve heard a lot of great things about you.  Your reputation precedes you. Explore each other’s needs with a you-attitude  What direction are you taking your business?  What would be an ideal outcome for you?  What are the top five things you value most in a business relationship?  What do you like most about your current supplier, and what would you like to change?  What are you hoping to achieve in the next year?  What are your medium and long-term goals? Establishing common interests  We have a lot of common ground.  There are definitely many areas where our interests are aligned.  There is great potential for synergy between our two businesses.  Our needs in this area complementary, don’t you think? Emphasizing solidarity  Our long-term partnership can only contribute to the success of both our companies.  This is a great chance to forge an even closer and more productive working relationship.  By working closely together, we can achieve great things. Joining forces  Because we faced such fierce competition from larger companies, I suggested joining forces with some of our competitors.  Originally, they were on opposite sides; but then, when they faced a common enemy, they joined forces to defeat their competitor. Suggest the next step  This is an area that’s worth exploring further.  Let’s try to hammer out an agreement.  Why don’t we get together next Thursday or Friday to talk?  The next step, I’d say, is to get all the parties around the same table.

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businessenglishpod BEP 404 – Getting Started Goodwill  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. Starting off  May I begin by saying that we have looked at your quotation very closely.  First of all let me give you some background on our proposal.  We understand that you are looking for a solution to this problem. Suggesting an Agenda  We have three main issues we’d like discuss with you today.  I was thinking we could start by discussing the details of the order, then moving on to price. Setting ground rules  Before we go on, could we agree on procedure?  Why don’t we break after an hour for lunch?  Please feel free to interrupt me at any time if you have any questions. Clarifying  What exactly do you mean by that?  If I understand correctly, you’re saying that production costs will be much higher than expected.  Right. So I think 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. Probing  Could you tell us more about your product’s special features.  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. Exploring possibilities  I would like to explore a number of options with you.  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. Being non-committal  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?

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Successful Negotiations BEP 404 – Clarifying and Evaluating Positions Stating your position - strong  Frankly, I must say that we have to be very firm on this point.  We have to insist on our point of view. Stating your position - careful  At first sight, this appears to be an untenable position for us.  It seems to me that this is an area where it would be very helpful for you to make a concession.  I would not like you to think that we are being inflexible. Clarifying positions  If I understand the position correctly, you are looking for better credit terms, am I correct?  As we see it, this is the position at the moment:  How do you see our objectives?  Can I just summarize our positions as I see them? Giving supporting reasons  Let me explain why we have reached this conclusion,  I also have to take into account many other factors.  There are several aspects to this situation.  I’d just like to briefly run through seven points that explain our position on this. Evaluating positions - positive  Despite a couple points of minor disagreement, the arrangement under discussion obviously has a lot to offer both sides.  Though there are still a couple of loose ends to tie up, we feel overwhelmingly positive about the compromise that we’ve reached.  This is a good offer – no doubt about it. Evaluating positions - negative  Honestly, this offer leaves a lot to be desired, in our point of view.  We’ve looked at the figures closely, and I can’t say that we currently have a very high appraisal of this deal.  At this point, I think it’s really tough to see where the value is for our side.

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businessenglishpod BEP 406 – Declining an Offer while Maintaining Goodwill 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. Expressing 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. Expressing regret?  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. Creating goodwill  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 opinions, we are committed to a long-term partnership.  Your support means a lot to us.

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Successful Negotiations BEP 407 – Bargaining Emphasizing possibilities for further cooperation  We’re looking for a steady supplier.  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. 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. Signaling for movement  That seems rather high.  Don’t you think that’s a little low?  Can you go a little lower? Turning on the pressure – Positive  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. Turning on the pressure – Negative  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. Suggesting alternatives and their benefits  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. Responding to a proposal – Cautious yes  That could be a way forward.  Well, that might be possible, but we need something in return. Responding to a proposal – Strong yes  Okay, we can agree to that.  That sounds fine.  That’s acceptable. Responding to a proposal – 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. Responding to a proposal – Soft no  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. © 2009 All rights reserved: www.businessenglishpod.com

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businessenglishpod Buying more time  I’ll need to check a few details.  I’d like to consult with my colleagues before committing to a view on the point.  Why don’t we come back to that point again after we’ve discussed payment terms.

BEP 408 – Restarting Talks Starting the discussion back up  I’ve been thinking, and I’ve come up with a different angle on everything.  I think I see things in a new light, and I’d love to talk it over.  You are going to be very interested in the new developments, I think.  I think you’ll be excited about this new approach.  I’ve got a new idea I’d like to run by you. Identifying obstacles  The delivery date really seems to be what’s holding us back.  The main issue is payment terms, from what I can tell.  At this point the credit period seems to be the main bone of contention. Drawing someone out  I’m not quite sure where this is going…  Where are you headed with this?  Stop beating around the bush – what are you saying?  What’s the upshot? Exploring alternatives  How about we look at this from another angle?  Let’s try something different.  What about putting this in a different light?  There might be another way to approach this.  Let’s come at this from a different direction. Moving towards agreement  You’re right.  You have a point.  I think I can accept that.  I think we’ve made some progress.  I think I can a way to solving our differences. Taking action  What’s the next move?  Let’s draft up a contract.  I suggest the next step is to get everything in writing.  Can you fax me a letter of agreement?  Please send me a detailed proposal by email.

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Successful Negotiations BEP 409 – Closing the Deal Agreeing to the other party’s terms  It’s a deal!  It’s settled, then.  Good news! We can accept this offer.  I think this is fair to both sides.  Let’s shake hands on it.  Good, I think we have an agreement. Making a summary  Okay, let’s go over everything one last time.  So let’s just run through what we discussed again.  Let’s confirm the details of our agreement.  To sum up, the terms are 5/10 net 30, payment by bank draft.  I’d just like to make sure that we’re all on the same page. Tying up loose ends  We just want to confirm that we have agreed on delivery.  There are just a couple of loose ends to tie up.  There are just a few details to mop up.  Let’s get together early next week to draft an agreement.  Would you be amenable to signing the contract next week? Reinforcing the relationship  Looking forward to working with you.  We really appreciate all the work you’ve put into making this possible.  Thank you for your support.  We stand to benefit a lot from your experience.  We highly value our partnership and look forward to our future cooperation. Using positive language  We are confident that we can provide you top quality at a good value.  This is the beginning of great things.  We are going to work hard to make this project a success.  We look forward to working with you.

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