You will hear a conversation between the dealer Dan and the producer Ann. For e

Man: I’d like to get the ball rolling by talking about prices. Your products are very good. But I’m a little worried about the prices you’re asking. I know your research costs are high, but what I’d like is a 25% discount.
Woman: That seems to be a little high, Mr. Smith. I don’t know how we can make a profit with those numbers.
Man: Please, Ann, call me Dan. Well, if we promise future business—volume sales—that will slash your costs for making the Exec-U-ciser, right?
Woman: Yes, but it’s hard to see how you can place such large orders. How could you turn over so many? We’d need a guarantee of future business, not just a promise.
Man: We said we wanted 1000 pieces over a six-month period. What if we place orders for twelve months, with a guarantee?
Woman: If you can guarantee that on paper, I think we can discuss this further. Even with volume sales, our costs for the Exec-U-Ciser won’t go down much. We could take a cut on the price. But 25% would slash our profit margin. We suggest a compromise—10%.
Man: That’s a big change from 25! 10 is beyond my negotiating limit. Any other ideas?
Woman: I don’t think I can change it right now. Why don’t we talk again tomorrow?
Man: Sure. I must talk to my office anyway. I hope we can find some common ground on this.
Woman: OK.
Man: Hi, I’ve been instructed to reject the numbers you proposed: but we can try to come up with something else.
Woman: I hope so. My instructions are to negotiate hard on this deal—but I’m trying very hard to reach some middle ground.
Man: I understand. We propose a structured deal. For the first six months, we get a discount of 20% , and the next six months we get 15%.
Woman: Dan, I can’t bring those numbers back to my office—they’ll turn it down flat.
Man: Then you’ll have to think of something better.
Woman: How about 15% the first six months, and the second six months at 12%, with a guarantee of 3000 units? It’s about the best we can do, Dan. We need to hammer something out today. If I go back empty-handed, I may be coming back to you soon to ask for a job.
Man: OK, 17% the first six months, 14% for the second? About the delivery, we’d like you to execute the first order by the 31st.
Woman: OK. Let me run through this again: the first shipment for 1500 units, to be delivered in 27 days, by the 31st. I’d prefer the first shipment to be 1000 units, the next 2000. The 31st is quite soon—I can’t guarantee 1500.
Man: I can agree to that. Well, if there’s nothing else, I think we’ve settled everything.
Woman: Dan, this deal promises big returns for both sides. Let’s hope it’s the beginning of a long and prosperous relationship.