CHAPTER VIII

PRICE NEGOTIATION

8.1 Introduction
This unit focuses on discussing about how a businessman uses English
expressions in negotiating price informally. This topic will also be discussed in the in the
English for Secretary for further development. The language introduced in this unit are
limited to the use of expressions for asking price, expressing opinions, agreeing and
disagreeing, offering a solution, making conditional offer and making an agreement in the
negotiation context. It is expected that at the end of this unit, students will be able to use
English in negotiating price when they work in the company.

8.2. Types of Language Expressions concerning price negotiation

This sub-section discusses about language expressions relating to price

negotiation.

8.2.1 Grammar and language expressions used to talk about price negotiation
Some useful expressions that can be used in negotiation are:

Opening conversation

Asking confirmation about price

Is this your best price?
Is this your fixed price?
Answer
It is our rock-bottom price
It is not a fixed price. You can bargain it.

Asking opinion about price

How much do you want it?
What is your view of the price we offer?
What is your view of the increase of price?

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What do you think of the price we offer?

Expressing opinion about the price

I think the price is too high. The reason is…………..

I think the price is reasonable. The reasons are…..
Well, in terms of quality, our product is best one.

The second offer?

How much do you want it?

Disagreement
I object to offering discount to our customer for several reasons. Those are….
I appreciate your situation but I didn’t expect the price go that too high.
Taking into account our current situation, personally I think that is our button-rock
price.

Reasons for disagreement

I have several reasons to disagree about the new prices.
I am sorry I can’t agree with your decision.
I can see your point but….
I understand how you feel but if you take into account our situation, I think……
I can’t accept that. Personally, I think……
I see the problem differently……..

Rationale for the price increase

The reasons for us to increase the price based on several factors.

Probing

What do you mean by……………

What do you mean when you say………
How do you feel if I offered……..

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Don’t you think that it would be possible to …
Can you suggest a compromise…?
I don’t quite understand when you say….
Can you clarify your position?
Why do you want…?
Does this mean…
Do you have any evidence?
How did you get the information?
Are you sure?
Before we discuss this point I’d like to be sure about your position on…
Can I just check a point you made earlier?
So what you mean is…
Are you sure that that is the only way?
Wouldn’t it be possible for you to…?

Towards agreement

We could agree to… if you were willing to…

Is there any way of changing or modifying……
Would it help if we offered to…?
On my side I could… if you could….
Well, and then let me suggest that…
Can I suggest…
Are you prepared to accept…?
Do you see my point…?
Can I take it that you agree…?
Can you understand my point of view?
Do you accept that?
You’re right.
You have a point.
I think I can accept that.

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 Let’s discuss your point about…
I think we have made some progress.
Do you think that is acceptable?

A solution

Good, I think we have an agreement.

Fine, I think we’re all agreed now.
Let’s shake hand on it!
I think we have reached a compromise.
That’s acceptable.
I think that’s fair to both sides.
Are you happy with that?
So, Can we just confirm that we’ve agreed with that?
Well, thank you very much; I’m glad we’ve reached an agreement.
Thank you very much for being open with me.
I m glad we have settled that.
Note:
In bargaining and making offer during negotiation, the conditional sentence is very useful
to use. The type of conditional sentence is formed by combining “If + present + present or
If + present + future.
Example: I can keep the price at the same level if you can increase the quantity of order.
If you increase the price, we will decrease the order.
If all prices fall, I will let you know.

8.2.2 Dialogues relating to price negotiation

This sub-section discusses about language expressions used relating to the price
negotiation.

8.2.2.1 Dialogue 1, 2 and 3 talking about price negotiation

Read the following dialogue 1 and 2 between a salesman and a customer about
bargaining the price. Please answer the questions under the two dialogues to check your

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understanding about the content of the dialogue. Then, identify the language expressions
you do not understand used in the dialogue and ask your lecturer to clarify the meanings
and the functions of the language expressions. Finally, practice the dialogue with a
partner.

Conversation 1. Bargaining Price

A: Is this your best price?

B: I'm afraid it is. That's our rock-bottom price.
A: That may be true, but if you make it cheaper, we'll be able to place large orders
continuously.
B: About what price would you say?
A: I have to ask you for Rp 20.000,-.
B: Rp 20.000 is out of the question. The best I can offer you is Rp 25.000,-

Questions:

1. How much does Mr. B offer to Mr. A in the first time?

2. How much does Mr. A bargain to the offer?
3. What is the last offer of Mr. B?

Conversation 2. Bargaining price

A: The prices you quoted us are a little too high. I want a 20% discount.
B: I can't give a reduction like that
A: Look, I know you can manage that. I've already had a similar offer from your
competitors.
B: But when it comes to quality, there's no comparison.
A: You have to meet my figure, if your company really wants to sell more.
B: Well, I need some time to think it over.

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Questions:
1. How much discount does A ask?
2. Can I reduce the price as I bargain?
3. Why doe B offer a high price?

Conversation 3. Bargaining Price

A: We've had to increase our prices on some of our items.

B: Up again 7
A: Yes. However, since the quality has also improved, the raise is justifiable.
B: How much has it gone up?
A: The unit price has been raised by 5% to Rp 27.000,-.
B: I didn't expect it to go that high.
A: How much are you asking per unit?
B: Our factory price is Rp 9.500,- per unit. But it depends on quantity.
A: Assume I order 30,000 outright?
B: Then I could bring it down to Rp 9.400,-.
A: That doesn't seem like much of a reduction. How about Rp 9.000?
B: I'll tell you what. If you double the order, I suppose we could consider it.

Questions:
1. Why does B increase the price of the good?
2. How much is the increase?
3. Why doe B offer a high price?
4. How much price does A ask?
5. What is the reason of A to ask for reduction?
6. What condition does B require to fulfill A’s request?

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8.3 Closing

This section provides some exercises to demonstrate your understanding and

ability to use the language expressions appropriately relating to price negotiation.

8.3.1 Practice with a partner. One person reads sentences below, the other replies by
using conditional sentence. Use the phrase in the bracket as a clue.
1. Can you reduce the price of your product please? ( increase the volume of your
order)
……………………………………………………..
2. I hope you can increase the number of your order ( give discount)
……………………………………………………..
3. How many goods will you need next month? ( depends on the price)
………………………………………………………..
4. Would you like to give us more discounts please ( depends on the number of
order)
…………………………………………………………
5. Can you order the goods as soon as possible? (Reduce the price)

8.3.2 Complete the following dialogue. Use a word, words or phrase available below.

a. the prices up c. About 5 percent e. we won't buy g. won't come down

b. I'm sorry d. further discounts f. steep

A: How much can you bring the price down?

B: I'm afraid that there is no room to negotiate the price.
A: They look rather…….
B: Yes, but they are worth that much.
A: How much are………….?
B: …………………..on the average.
A: If you …………………….to Rp 23.000,-, …………………….one.
B: ………….., but I cannot make any ……………………….

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