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Business Negotiations

Learn key vocabulary and phrases for successful business negotiations.

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Ex A – ReadingRead about a supplier–buyer negotiation and answer comprehension questions

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Ex B – VocabularyFill in negotiation vocabulary in context

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Ex C – PhrasesMatch negotiation phrases to the correct stage

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Ex D – WritingWrite responses in a negotiation scenario

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Exercise A

A Negotiation Between Two Companies

Read the text about a business negotiation, then answer the comprehension questions below.

Read the text

GreenTech Solutions is a small German company that manufactures solar panels. They want to expand into the British market and have arranged a meeting with BrightEnergy UK, a large energy retailer based in Manchester.

Before the negotiation, both sides prepared carefully. GreenTech's sales director, Claudia Fischer, researched BrightEnergy's current suppliers and identified their key concerns: price, delivery times, and after-sales support. She set a target price of €85 per unit but was prepared to go as low as €78 if BrightEnergy committed to a large order.

At the meeting, Claudia opened with a proposal: "We can offer you our premium solar panels at €85 per unit, with free delivery for orders over 5,000 units." James Wright, BrightEnergy's purchasing manager, made a counter-offer: "That's above our budget. We'd need a price closer to €72 per unit to make this work."

After some discussion, Claudia offered a concession: "We can't go to €72, but we're willing to come down to €80 per unit if you agree to a two-year contract." James considered this and replied: "I appreciate the flexibility. If you can also guarantee delivery within 14 days, we have a deal."

Both sides agreed, shook hands, and signed a memorandum of understanding. The negotiation was successful because both parties were willing to compromise — GreenTech lowered their price, and BrightEnergy committed to a longer contract.

Comprehension questions

1. What does GreenTech Solutions manufacture?

2. What was Claudia's target price per unit?

3. What did James Wright ask for in his counter-offer?

4. What concession did Claudia make?

5. Why was the negotiation successful?

Exercise B

Negotiation Vocabulary

Complete each sentence with the correct negotiation term.

Fill in the gaps

1. Before the meeting, we need to set clear objectives and decide on our — the lowest price we can accept.

2. We have strong in this deal because the client has no other suppliers who can deliver on time.

3. The discussions reached a — neither side was willing to move from their position.

4. Accepting a lower margin in exchange for a longer contract is a common in business negotiations.

5. After three hours of discussion, the team finally reached a on the payment terms.

6. We need to close this deal before the at the end of the quarter.

7. Their opening was surprisingly generous — they offered a 15% discount from the start.

8. We couldn't agree to all of their , especially the 90-day payment window — that's too long for us.

Exercise C

Negotiation Phrases

For each phrase, choose which stage of a negotiation it belongs to.

Match each phrase to the correct stage

Stages: Opening Making a proposal Making a concession Reaching agreement Closing

1. "Thank you for coming today. Shall we get started?"

2. "We'd like to suggest a price of €50 per unit for orders over 1,000."

3. "We're prepared to reduce the price by 5% if you can guarantee a minimum order."

4. "I think we've found a solution that works for both sides."

5. "Let's put this in writing and schedule a follow-up for next week."

6. "We can offer extended warranty coverage if you sign a three-year deal."

7. "Before we begin, let me outline our key priorities for this meeting."

8. "So we're agreed — €48 per unit, 30-day payment terms, delivery within two weeks."

Exercise D

Negotiation Writing

You are a sales manager at a furniture company. A large hotel chain wants to buy 500 desks from you. Write your responses to the following negotiation situations. Use negotiation vocabulary from Exercises B and C.

Situation 1 – Opening

The hotel's purchasing manager has arrived for the meeting. Write 2–3 sentences to open the negotiation. Welcome them, state your goal, and outline what you'd like to discuss.

Situation 2 – Making a proposal

Your standard price is €120 per desk. The hotel wants a discount. Write 2–3 sentences making a proposal that includes a condition (e.g. minimum order, delivery date, payment terms).

Situation 3 – Responding to a counter-offer

The hotel has asked for €95 per desk — below your bottom line of €100. Write 2–3 sentences responding. You can make a concession, but you must protect your minimum price.

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