Negotiating a Price with a Dealer

A: How much does this car cost?B: Well, come on in and we'll sit down and discuss that right now. How much do you want to pay?A: I really was just wondering what the price is.B: Well, figuring in tax, license, dealer prep, and registration, I can let this car go for fifteen thousand dollars.A: I was thinking a little lower than that.B: Whoa! Let's keep talking here. I am sure we can work something out. What price are you thinking is fair?A: I was thinking more like thirteen thousand dollars.B: You know, you look like you are a sweet kid. I'll give it to you for fourteen thousand dollars.A: That would be a good price if the car was in great shape, but it is registered as having been in an accident.B: OK, thirteen thousand seven hundred and fifty, and that's my final offer.

2 A: If I want to buy this car, what will it cost me?B: Let me get my contract out, and we'll figure that out for you right now.A: Can't you just tell me what it costs?B: You know, I am prepared to offer you a great deal today on that car. With tax, license, registration, and dealer prep, the total will be fifteen thousand dollars.A: Fine, I'll come back later with my father, who is a lawyer, and we can talk then.B: I am sure that we can work something out. What price were you thinking would be a good deal for you?A: Thirteen thousand would be more like it.B: Fourteen thousand for this car is a good price. For that I am practically giving it away.A: Normally that would be a good price, but that car has been in an accident.B: Yes, I see your point. Thirteen thousand seven hundred and fifty is my final offer.

3 A: How much money for this car?B: Yes, that car is beautiful, isn't it? Come on inside and we'll discuss the price.A: I just want to know the price.B: Fifteen thousand out the door! What a deal! That will, of course, include tax, license, registration, and dealer prep.A: I appreciate your help, and I'll see you later.B: Oh, you look like a smart person. What price would be fair to you?A: I think that thirteen thousand would be fair for this car.B: I can see that you are a smart buyer. Fourteen thousand is my best price.A: If the car hadn't been in an accident, that would be a good price, but it has a few minor problems.B: Thirteen thousand seven hundred and fifty is my final offer.

DIALOGUE: FURTHERING NEGOTIATIONS Sunburst, Inc., a Mexican company, is negotiating a contract with Gemini, Ltd., a Taiwanese company, for the manufacturing of PC mainboards. John Liu is the Production Manager for Gemini and Cynthia Chase is the Purchasing Manager for Sunburst. Cynthia:

 What is your production situation now? Do you have the capacity to provide us with a substantial number of units?

    John:

 Provided that you give us sufficient notice, we have the production capacity to meet your needs. What sort of quantities are you looking for?

    Cynthia:

 We are considering an initial quantity in excess of 200,000 units, with additional similar quantities ordered on a quarterly basis.

    John:  What did you have in mind regarding specifications?    Cynthia:

 

We would like units for both P4 and AMD CPUs. About 20% would be for entry-level desktops, 40% would be for business use and the remaining 40% for multimedia use. Supposing we placed an order for 200,000 units for the second quarter of 2004 and follow-up orders of 200,000 units for each of the following three quarters, what unit price could we expect?

    John:

 As long as we are clear on your specifications and have 30 days before beginning production, we could offer a unit price of NT$1,700.

    Cynthia:

 If we doubled the number of units in our order, what discount on the unit pricecould we receive?

    John:

 Before I answer that, could you tell me what you were thinking about in terms of delivery dates?

    Cynthia: We were thinking about delivery dates of 120 days following our order.    John:

 On the condition that we would have such a delivery period, we could offer a 5% discount on the larger order.

    Cynthia: If you could offer an 8% discount, then we could agree to place the larger order.

    John:

 Supposing we offered a compromise discount of 6.5% on the larger order, would that satisfy you?

    Cynthia:

 I think we can live with that providing you supply good technical support and documentation in Spanish.

    John:  No problem. We can do that.   Cynthia: OK. It's agreed then.    John:  Thank you.