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The definition of quotation
❖Narrowly: it is a way to indicate a particular price at which one party will buy or sell the specific commodity.
❖Broadly: including other terms and conditions for a deal: the name of the commodity, quality, quantity, price, packaging, shipping, insurance, payment terms, inspections, claims索赔, arbitration 仲裁…
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psychological pricing
❖Units of measurement: RMB-Euro/Dollar ❖3 Dollar--- 20 Yuan exchange rate汇率 ❖换算单位 kilo---pound
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Differentiation
❖This strategy allows a company to buy or sell the same product at different prices based on their grades, quantity, delivery destination, shipment, methods of payment and other related factors.
买方的价格区域
底价 底价
最低报价
可能成交的区域
谈判区域
卖方的首次出价
买方底价
可能达成 协议的区域
买方的首次出价
卖方底价
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❖Common ways to establish a quotation price:
❖Assess the market situation at home or abroadБайду номын сангаас the competitors’ price level, set a range of prices to quote;
❖The quoters should consider their own interests and the demand and supply of the relevant commodity in the market.
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价格谈判与价格谈判区间
买卖双方的价格区域
卖方的价格区域
最高报价
可能成交的区域
quotations ❖4. principles and strategies for making
compromises
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❖The bargaining phase is the core and most difficult stage in the whole negotiation process.
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Guidelines for making a quotation
❖The principle of making a quotation in business negotiation is “to sell dear” or “to buy cheap”.
❖The seller should try to present his quotation at the highest price acceptable to the buyer; the buyer should bid for the lowest price bearable to the seller.
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Bargaining process
❖Key points: ❖1. tactics and strategies for making
quotations; ❖2. indicators for the end of a bargain; ❖3. tactics and skills for making counter-
❖Each side may modify its original objectives, establish a basic framework for the negotiation agreement, adjust its own strategies.
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❖The negotiators’ ability to use their wisdom, strategies and skills in a correct, effective and flexible way will determine how well they can realize their final goals.
❖Set a bottom line as the last line of defense in the negotiation;
❖Decide the initial level for the quotation. ❖The seller can ask a sky-high price; the
buyer can make a rock-bottom offer.
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Quoting strategies
❖Be explicit and specific ❖be decisive and resolute ❖offer no explanation ❖use differentiation (区别报价法) ❖use psychological pricing(心理定价法) ❖use midway price changes……
❖All negotiating parties confer about substantive(实质性的) issues and items.
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❖In the bargaining phase, each negotiating party measures its own strength, intelligence and strategies against those of its counterpart.