| DANNY MCNEIL:
| Before we begin, are you sure that you are in a position to conduct this negotiation?
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| EDWARD GREEN:
| Yes, I have the authority to negotiate with you.
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| DANNY MCNEIL:
| Right. Let's get down to business.
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| EDWARD GREEN:
| Which of our product lines are you particularly interested in Mr McNeil'.
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| DANNY' McNEIL:
| I could be interested in these ones that I have outlined here.
But I want to hear what you say about discounts.
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| EDWARD GREEN:
| Let's talk specifically about Big Boss.
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| DANNY McNEIL:
| Let's be clear about one thing.
I hope you realise that we must have a much larger discount than what's on the table now.
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| EDWARD GREEN:
| I think the discount problem can be resolved but you need to be more precise about numbers.
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| DANNY MCNEIL:
| Fair enough.
What kind of discount are you offering on ten thousand units?
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| EDWARD GREEN:
| On ten thousand units, Mr McNeil, I can offer a discount of thirty percent. Rut I can't offer more...
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| DANNY MCNEIL:
| 30 per cent!
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| EDWARD GREEN:
| Just let me finish, 30 percent, but with a guarantee of delivery within two months.
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| DANNY MCNEIL:
| Delivery must be within two months or I'm not interested.
Now I'm offering you the chance to make a very large sale and you are turning it down because we’re…
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| EDWARD GREEN:
| Can I just come in here Mr McNeil?
I haven't turned anything down. I haven't said "no".
I am just saving that on ten thousand units our discount terms are thirty percent.
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| DANNY MCNEIL:
| But...
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| EDWARD GREEN:
| Please let me finish.
Now if you commit to buy twenty thousand units then I could consider a larger discount
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| DANNY MCNEIL:
| How much larger?
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| EDWARD GREEN:
| If you commit to twenty thousand units then I can offer a thirty-five percent discount.
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| DANNY MCNEIL:
| Thirty, thirty five percent. I'm getting tired of this.
You are playing games. I am looking for a large discount and I hope that you're going to offer me one.
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| EDWARD GREEN:
| If you want a big discount then you must make the order a big one.
Let's talk about unit price rather than discount.
Our standard unit price to the wholesaler is 23.5.
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| DANNY MCNEIL:
| And I'm not interested in 23.5.
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| EDWARD GREEN:
| Yes, I know that Mr McNeil. If you buy 40,000 units, then I can offer a unit price of 19.5.
What will your mark-up be on the Boss, 3, 3.5, 4?
|
| DANNY MCNEIL:
| About that.
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| EDWARD GREEN:
| With those figures you're going to be very competitive.
|
| DANNY MCNEIL:
| 19.5 unit price;
|
| EDWARD GREEN:
| If you buy 40,000 units; that represents a discount of...
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| DANNY MCNEIL:
| I have a calculator too.
I can see what the discount is.
Offer me a unit price of 19.5 on 25,000 units and we can do business.
|
| EDWARD GREEN:
| I can't do that. I'm sorry.
|
| DANNY MCNEIL:
| Let's break for a few minutes.
I've got a few things I have to see to – I'll he a couple of minutes.
Would you like a cup of coffee?
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| EDWARD GREEN:
| Yes please.
|
| DANNY MCNEIL:
| Help yourself to the phone if you want to make a call.
|
| EDWARD:
| Thanks.
|
| DON BRADLEY:
| Don Bradley.
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| EDWARD GREEN:
| Hi Don. How's the meeting?
|
| DON BRADLEY:
| It's finished. I'm on my way over.
How's your meeting?
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| EDWARD GREEN:
| He's definitely interested. We're having a break.
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| DON BRADLEY:
| What's the situation?
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| EDWARD GREEN:
| It's becoming difficult; we're stuck on the size of the order for Big Boss.
He wants aunit price of 19.5 on an order of 25,000.
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| DON BRADLEY:
| That sounds good to me.
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| EDWARD GREEN:
| I think we can push him further.
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| DON BRADLEY:
| Do you think so?
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| EDWARD GREEN:
| I think so... I hope so.
|
| DON BRADLEY:
| Be careful. He's a clever man.
I've dealt with McNeil before.
When he starts banging on the table, that's as far as you can go with him. Good luck!
|
| EDWARD GREEN:
| So let's clarify the position so far.
As far as Big Boss is concerned we have agreed on a unit price of 20 for 30,000, and I can't go below that price for an order of this size.
Now let's look at terms of payment.
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| DANNY MCNEIL:
| Ninety days.
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| DWARD GREEN:
| I'm sorry Mr McNeil, but that's completely unacceptable. Our standard policy on discounts of over thirty percent is payment within thirty days of delivery.
|
| DANNY MCNEIL:
| This is not a standard situation. I am making a very large order...
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| EDWARD GREEN:
| Can I just come in here, Mr McNeil? I know you're making a large order but you are also getting an excellent product at a very large discount.
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| DANNY MCNEIL:
| I can't believe that this is your final offer.
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| EDWARD GREEN:
| If you order 35,000 then I can authorise payment in 90 days.
|
| DANNY MCNEIL:
| We have already decided on quantity.
This is my last offer. 30,000 at 60 days payment. Take it or leave it.
|
| EDWARD GREEN:
| I think that offer will be acceptable.
So all we have to do now is finalise the delivery arrangements.
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| DANNY MCNEIL:
| Well let's discuss the details tomorrow.
|
| DANNY MCNEIL:
| Come in! Don – how are you?
|
| DON BRADLEY:
| Hello Danny – Edward.
I'm sorry I'm late.
|
| DANNY MCNEIL:
| You are late. I'd rather do business with you than this young man.
What have you been feeding him?
|
| DON BRADLEY:
| Oh, we don't feed him. We like to keep our staff hungry.
|
