Unit 03 Making Purchase

1、Unit 3Making PurchaseUnit 3 Making Purchase Purchase is not one of the stipulations in a contract like payment, delivery and insurance, etc. It refers to the whole process that a buyer purchases products or services from a seller. Usually when the contract is made by the seller, it is called a sales

2、 contract, and when made by the buyer, a purchase contract. Making purchase is closely market related. IntroductionUnit 3 Making Purchase On a buyers market, making a purchase is just a job of following the rules of the business whereas completing a purchase requisition on a sellers market is a toug

3、h job for a purchaser. Usually the purchaser has to tell the seller that his or her company is in urgent need of the goods; if the seller mentions some difficulties in offering the goods, the purchaser should be flexible on his position by offering a higher price or make some concessions in some asp

4、ects and emphasizes the friendship and long-run cooperation.IntroductionUnit 3 Making Purchase Purchasing refers to a business or organization attempting to acquire goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in th

5、e purchasing process, processes can vary greatly between organizations. Typically the word “purchasing” is not used interchangeably with the word “procurement”, since procurement typically includes Expediting, Supplier Quality, and Traffic and Logistics (T&L) in addition to Purchasing.Introducti

6、onUnit 3 Making PurchaseMaking PurchaseUnit 3 Making PurchaseUnderstand the importance of market change in making purchase in international trade;Learn to evaluate the market situation and make good purchase at good price;Have a good command of special terms and useful expressions used in making pur

7、chase;Know how to make a good purchase on an unfavorable marketObjectivesUnit 3 Making Purchase The purpose of isolating purchase as one of units is to help the students gain some senses of the market and awareness of the market influence on the contract negotiation, especially on the price negotiat

8、ion. So in this unit, the learning focus should be on the market knowledge and its implications in specific and concrete deals. So sometimes in order to complete a purchase requisition on an unfavorable market, you need to know something about the description of product qualities, the market changes

9、 and the way to buy the requested goods or service.Learning InstructionUnit 3 Making Purchase Relative knowledge Special terms useful expressions SkillsBriefingUnit 3 Making Purchase guarantee of quality 降低品质 sacrifice quality 一般品质 difference in quality 品质检验证书 quality inspection certificate 上好可销售品质

10、best quality, prime quality, first-rate quality 品质保证 customary quality 品质上的差异 inferior quality 最佳品质 fair average quality F.A.Q 良好平均品质 good merchantable quality G.M.Q 低劣品质Lets how you have prepared: Task 3Unit 3 Making Purchase buyers market 买方市场 sellers market 卖方市场 order sheet /order form订单 to close

11、 an order决定成交 to fill an order执行订单 Key TermsUnit 3 Making Purchase to execute and order执行订单 to complete an order完成订货/已交货 to send an order寄送一份订单 to ship an order装船 to modify an order改变订货 to repeat an order继续订货 to confirm an order确认订货Key TermsUnit 3 Making Purchase to cancel an order取消订货 to increase a

12、n order增加订货 to duplicate an order将定货增加一倍 to reduce an order减少订货Key TermsUnit 3 Making PurchaseThe market advances. /The market gains. /The market rises市市况上扬。况上扬。The market declines. /The market falls. /The market loses.市况下挫。The market booms. /The market is excited. /The market becomes active.市况活跃。Th

13、e market slumps. /The market becomes dull. /The market breaks down.市况暴跌/停滞。The market is on the upgrade. /The market is on an upward trend. /The market tends upward.市况走势上扬/ 攀升/走高。The market is on the down grade. /The market tends downward. /The market is on a downward trend. /The market takes downwa

14、rd.市况走势下跌/走低 。The market declines. /The market drops. /The market sags.市况狂跌。The market jumps. /The market advances. /The market soars.市况暴涨。More TermsUnit 3 Making PurchaseThe market improves.市况市况好转好转。The market picks up.市况扬升。The market hardens/The market stiffens.市况坚挺。The market revives.市况复苏。The mar

15、ket rallies.市况重振。The market collapses.市况崩溃。The market relaxes市况疲软。The market rebounds.市况反弹。More TermsUnit 3 Making PurchaseThe market fluctuates.市况波动。市况波动。The market is strong.市况强劲。The market is firm.市况坚稳。The market is exciting.市况活跃。The market is advancing.市况爬升。The market is healthy.市况健康。The market

16、is weak/The market is soft .市况疲软。More TermsUnit 3 Making Purchase On a buyers market, making a purchase is just a job of following the rules of the business whereas completing a purchase requisition on a sellers market is a tough job for a purchaser. Usually the purchaser has to tell the seller that

17、 his or her company is in urgent need of the goods; if the seller mentions some difficulties in offering the goods, the purchaser should be flexible on his position by offering a higher price or make some concessions in some aspects and emphasizes the friendship and long-run cooperation.Key Knowledg

18、e Unit 3 Making Purchase Making and obtaining concessions A concession is change in the position that you have held in a purchase negotiation. When you make a concession, you are offering the other party something extra. In return, you will hope to get a concession from the other party. There are se

19、veral important problems with concession.More KnowledgeUnit 3 Making Purchase Drill 1 Your price have increased 25% over last year soared an additional 20% over the last year soared 30% over the past couple of months increased 15% compared with the past 10 monthsUseful DrillsUnit 3 Making Purchase D

20、rill 2 Our prices were consistently on the low side on the high side lower compared with the prices on the international market lower compared with the prices of the same kind of productUseful DrillsUnit 3 Making Purchase Drill 3 To clinch the deal, I really think we should both make some concession

21、s. How about ? finding some alternatives meeting each other half way splitting the differences fifty-fifty using a different term to address the issueUseful DrillsUnit 3 Making Purchase Drill 4 Id appreciate it if you could give us some extra time consider the deal carefully reduce your price by ano

22、ther 10% call your manufacturer as soon as possibleUseful DrillsUnit 3 Making Purchase Drill 5 Why dont we meet each other half way, provided you make the payment by letter of credit purchase 100 cases more of our product purchase 50 tons more of our fertilizer use our trade mark on this consignment

23、 of goodsUseful DrillsUnit 3 Making PurchaseWhile doing purchasing negotiation，negotiators should carefully think over the following points：1. When should you offer a concession?2. How much should you offer to the other party? 3. What will you get in return? Negotiation SkillKeep it in mind: Bargain

24、ing is trading, not givingUnit 3 Making Purchase Bargaining is trading, not giving.Negotiation SkillTrade what is cheap for you but attractive for the other party.It is usual to link concessions that you give with concessions you wish to receive.It is usual to link concessions that you give with con

25、cessions you wish to receive.It is usual to link concessions that you give with concessions you wish to receive.It is usual to link concessions that you give with concessions you wish to receive.It is usual to link concessions that you give with concessions you wish to receive.Unit 3 Making Purchase

26、When making concession, youd better : 1.Think about the value of the concession to the other party2. Think about the consequences to you of each concession that you make3. Know exactly when you intend to stop making any more concessions4. Be flexible on your positions; be firm about basic interests.

27、5. Dont give anything away without getting something in return.6. Be positive. Make a constructive response to any suggestion from the other party. Negotiation tipsUnit 3 Making Purchase Mr. Smart, a really smart purchaser of an American company is coming to China for a deal of womens wear and Mr. C

28、hen is receiving him and is very cautiously negotiating with this old customer. ( : Smart， : Chen) Smart : Well，Mr. Chen，this time we want to order 6000 sets of this kind of womens wear, but we want to use our own trademark. Chen : Thats okay. Weve already begun this kind of practice, but you have t

29、o bear the cost of making the label.经典对话经典对话Unit 3 Making Purchase Smart : No problem. Shall we proceed to the other items? Chen : Do you still buy in large quantities? Smart : Ill duplicate the order I placed last year. If I place the order right now, when can you ship the order? Chen :Well，if the

30、sales are done by the sellers samples, we should be able to get that off to you right away. If we have to make them to your taste, please allow me some extra time. 经典对话经典对话Unit 3 Making Purchase Smart : Thats not a problem, this time we are not in urgent need. Mr. Chen，can you give me a better price

31、 this time since I have placed such a large order. And also the market now is not working in your favor. Chen : Well then, how about this: since we hold different points of view toward the trend of the international market, shall we exchange the ideas about the market trend first, and then decide th

32、e specific price later?经典对话经典对话Unit 3 Making Purchase Smart : No problem. Then whats your assumption of the present market? Chen : Well, in my point of view, the market is on an upward trend and it becomes more and more active. Smart : Oh, you see. You use the right word active, but that does not me

33、an that the price is rising. The exporting countries like Germany and Italy have dramatically increased their supply, but on the other hand, the importing countries have reduced their import volume. The supply has exceeded the demand. Chen : But you have increased your order. (In a joking voice)经典对话

34、经典对话Unit 3 Making Purchase Smart : Are you serious, then I will modify my order and reduce it. Or I can even cancel the order if you like (Obviously joking). Chen : Of course not. OK, the market is ever fluctuating, and we are old friends. Weve been trading on both the buyers market and the sellers market for years. This shouldnt have been a problem for us. Smart : Yes, youre right. Chen