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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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 ofdue 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 musttake into accountredundancies inour

business operations and factor inthevolatility in the market.

Maxine: As you know, we think thesynergieswilloutweighall that.

Peter: Yes, but we’verun the numbers, and, depending on how thedeal 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 musttake into accountredundancies inour

business operations and factor in the volatility in the market.

Maxine: As you know, we think thesynergieswilloutweighall that.

To take into account andto factor in both meanto 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 synergiesin

their operations will outweigh – or be more important than – all the factors Peter

has mentioned. To review, synergy refers to a situation in whichthe 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’verun the numbers, and, depending on how thedeal 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 dissatisfactionwith 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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To reach an impasse means toencounter 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 regrethelpsdefuse or relax the situation. Then, he ends on

a positive note – he says, “I was really hoping we wouldresolve 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 openfor 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. <beep>

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. <beep>

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.<beep>

Example learner 1 – final offer:

Example client 1 – dissatisfaction: Frankly, we’re not satisfied with the offer

on the table. <beep>

Example learner 1 – regret:

Now, let’s try it again.

Exercise 2

Example cue 2: Already as far as we can move.<beep>

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. <beep>

Example learner 1 – regret:

Great. Now listen to the example answers.

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Answer 1

Example cue 1: Cannot bend further.<beep>

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. <beep>

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.<beep>

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. <beep>

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 abeep. Repeat the whole sentence, but say

the missing word.

For example, if you hear…

We ran the <beep> , 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<beep> for my blood.

Learner 1:

Cue 2:We’ve reached an<beep> because we can’t agree on price.

Learner 2:

Cue 3:There’s no two<beep> about it – we’re just going to have to accept the

deal.

Learner 3:

Cue 4: At this point, our need for cash<beep> the risk of taking out a loan.

Learner 4:

Cue 5:We should<beep> in the price of oil in our business plan.

Learner 5:

Cue 6:High<beep> 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 toorichfor my blood.

Answer 2:We’ve reached animpassebecause we can’t agree on price.

Answer 3:There’s no twowaysabout it – we’re just going to have to accept

the deal.

Answer 4:At this point, our need for cashoutweighsthe risk of taking out a loan.

Answer 5:We shouldfactorin the price of oil in our business plan.

Answer 6: Highvolatilityin the market can makes it risky to put a value on a

company.

That’s all for this episode. We’ve looked at making anddeclining a final offer;

expressing dissatisfaction and regret; and leaving the possibility open for further

cooperation by maintaining goodwill. We’ve focused onbuilding good

relationships even when things don’t go according to plan.

Thanks for listening. See you next time.

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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, ormaintaining 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 tobe very firmon this 1. (Stating your position)

point.

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

committed

emphasize

work

see

support

opinions

feel

partnership

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.

© 2009 All rights reserved: www.business englishpod.com 65

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 tobe very firmon 1. (Stating your position)

this point.

Mitch: That’s just too rich for our blood.

6. (Expressing

dissatisfaction)

Mitch:Well, if the number is 11 million, I think it’s really 4. (Evaluating positions)

tough to see where the value is for our side.

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 5. (Making a final offer)

as we can go at this point.

Mitch:Obviously, though, there are other areas where we’ll 8. (Maintaining goodwill)

be able to work together.

Brenda: Yes, and let me be clear about my reason – as I’ve 3. (Giving reasons)

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.

9. (Maintaining goodwill)

Mitch:Okay, so as I see it, this is the position at the 2. (Clarifying positions)

moment: You can’t accept a penny less than 11 million, but

we’re not will to pay more than 10.

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B. Expressing Regret and Maintaining Goodwill

1. I’m sorry to hear that you feelthat way.

2. It’s too bad that we seethings differently on this issue.

3. Well, obviously this is frustratingfor both sides.

4. Obviously, though, there are other areas where we’ll be able to work

together.

5. I would still like to emphasizehow much we appreciate ourpartnership.

6. Despite our differences of opinions, we arecommittedto along-term

partnership.

7. Your supportmeans 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 ofswapping ortrading

concessions – in other words, “You give me

something, and I’ll give you something in return.”

This is also called making offers andcounter-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 discussionandclarified Paul’s

basic needs. Now they need to agree on thequantity

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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