7. Complete these instructions about a forthcoming negotiation using words from the box.

bonus return target confidential

clause penalty feasible commission

Erica, just a few notes before tomorrow's meeting.

- Make sure they understand that 1) __________in the contract about how all

information about our products is 2) __________- we don't want our competitors knowing our secrets!

- Find out if they intend to operate on a sale or 3) __________ basis.

- Remind them that they will have to pay a 4) _________ if they don't pay us within the agreed period.

- Don't offer them a 5) __________of more than 25% - they shouldn't get more than that per sale or our profit margins will be too low.

- However, offer them a 6) _________ if they reach the 7) _________ we've set - they'll deserve more money if they can sell that many!

- Finally, find out if it's (8) __________ for them to offer a mail-order service as well - but If they think that idea won't work, don't argue.

Text 4

1. Read the text, then choose the best sentences to complete it.

Successful negotiations.

In business negotiations, good people skills, mutual respect and trust are absolutely essential. One of the aims of the first meeting is therefore for the two parties to develop trust and sound each other out.

1)........................... Doing your homework means finding out as much as you can about the company you are dealing with, about its needs and expectations, and about its negotiating style. 2)...............................

If you are clear about those points and generally feel well-prepared, you will be able to handle the bargaining stage much more effectively.

In this second phase, what you should be aiming for is a win-win situation. 3)................................ Getting to a win-win situation clearly requires a number of special skills, such as making concessions. 4)............................ Firstly, it may not be a good idea to start with your biggest one, as your prospect may then think you are desperate to strike a deal. On the other hand, starting small and making gradually bigger concessions is not recommended either, as this may arouse unrealistic expectations. 5)............................. And thirdly, make sure your prospect is fully aware of the value of every concession you make. 6)............................. The first pitfall to avoid is to allow the negotiation to drag on indefinitely. Agree on a schedule at the outset, and keep to it. 7)............................. Finally, never bow to pressure, and never exert undue pressure on your prospect either. Ultimatums, for instance, have no place in effective business negotiations. 8)…………. .

1. It also means defining precisely what you want and what your conditions are, as well as deciding in advance what kind of concessions you are willing to make.

2. Let us now turn briefly to three serious dangers which often lurk behind negotiations.

3. Obviously, it is easier to reach an agreement if both parties take away something from the deal.

4. In addition, we need to remember that not all business negotiations end in a deal.

5. Secondly, resist the temptation to make a concession whenever your prospect grants you one.

6. The next one is the unwillingness to admit that your prospect's arguments may be right, and yours wrong.

7. There are three key issues to bear in mind when making concessions.

8. This phase can be made easier if you do your homework beforehand.