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CONTRACT Teacher : Lê Hồng Linh ( MA) Tel: 0903 978 552 Email : lehonglinh.ftu@gmail.com ThiNganHang.com ThiNganHang.com 1
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 1: Export pricing strategies THE PROBLEM: The price which exporter states reflects delivery time, method of payment, etc. ThiNganHang.com ThiNganHang.com 2
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 1: Export pricing strategies How can the exporter avoid the “price trap” occurred in many negotiations when the buyer demands concessions about delivery time, method of payment, etc? ThiNganHang.com ThiNganHang.com 3
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 1: Export pricing strategies THE PRINCIPLE The exporter should guarantee that the contract price reflects any change in a set of assumptions about delivery, payment and warranty terms. ThiNganHang.com ThiNganHang.com 4
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 2: THE FIVE STEPS IN NEGOTIATING PAYMENT Step 1: Mode of Payment Step 2: Timing Step 3: Place of payment Step 4: Delay - what delay in payment is excusable? Step 5: Results of delay ThiNganHang.com ThiNganHang.com 5
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 2: THE FIVE STEPS IN NEGOTIATING PAYMENT Step 1: Mode of Payment There are four common mode of payment: 1. Payment on open account with no security: this type is seriously risky to the exporter ThiNganHang.com ThiNganHang.com 6
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CHAPTER: II NEGOTIATING PRICE AND PAYMENT Part 2: THE FIVE STEPS IN NEGOTIATING PAYMENT Step 1: Mode of Payment 2. Payment on open account secured by export credit insurance: the exporter pays money to an insurance company to buy an export credit insurance ThiNganHang.com ThiNganHang.com 7
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