Price Negotiation

A: It’s nice to see you, Mr. Karl.
B: Nice to see you, too, Mr. Su.
A: So shall we get down to business? If you don’t mind, can I get a list of prices from you?
B: Certainly. This is our catalogue and price list.
A: Thank you. Do you quote FOB or CIF?
B: We usually quote on FOB basis.
A: I’m surprised that your price is 20% higher compared to last year! May I ask what caused the increase?
B: The cost of the production has gone up. We have to adjust the selling price accordingly. As a matter of fact, this price is very reasonable.
A: But as far as I know, the use of new materials could reduce unit cost by 10%.
B: That’s true. But you can’t have the same quality.
A: Is it possible that you lower the price a little? Say $10 per piece.
B: Well, I have to think about it and discuss with my senior, I’ll give you a reply 30 minutes from now.
A: Take your time, please.

A: Now what’ the price? That interests me most.
B: The price is $370 per unit.
A: I must point that the price is too high for me to accept. Some firms we connected with offered the same at much lower prices.
B: Price can’t be taken separately from quality. There are certainly cheaper ones on the market. A comparison of the quality of our products with that of rival goods will show you that ours is far superior.
A: It is true that yours are of better quality. That’s why I am still interested in your product. But all users want both quality and price. Products of the same model sold by other companies are usually about $310-350.
B: That’s true, but if you understand that quality is the most important aspect of a product, you’ll agree that $370 is not high, especially when we allow you a 10% discount.
A: I see your point. That’s to say $333 each set. Still it’s a little higher than the average market price. Could you see a way to reduce the price, Mr. Karl?
B: Well, considering the quantity of your order and the long-term cooperation, we could further reduce the price to $320. That’s the utmost we can do. What do you think of that?
A: All right. We accept it.
B: Very well. Thank you.