Chapter Three Negotiation Lubrication

I. Negotiation simulation case

Silk Sales

Background

By the middle of $1980$s$,$ Hong Kong's silk market was mainly taken by Japan, South Korea, Taiwan and Hong Kong products. Silk products manufactured in the mainland were reduced from $90\%$ to $10\%.$ To alter the situation, the director of Shao$-$xing Silk Plant, Fan Shizhou, decided to open new markets. After a very careful market survey on prices, customers' demand and inquiry, his plant started producing silk with printed patterns in small quantity for each kind and rich variety. The product patterns are designed to cater to different cultures, customs and tastes.

Negotiation

On a cool day of autumn, an American saleswoman, Edward Nicolar, came into

Shaoxing Silk Plant and Fan Shizhou received her. After looking carefully at the

samples exhibited, she showed a look of satisfaction. Then suddenly, she turned to

Fan and said she wanted to order $7$ patterns at the price of $$3\mathrm{.}8$ per yard. Fan did not

answer her directly but mentioned the prices of the similar products in Italy, France,

America and Europe, and then he gave his counteroffer of $$5\mathrm{.}36$ per yard.

At this time she shouted and said $$5\mathrm{.}36$ was Hong Kong's retail price. Her boss would get crossed at her if she ordered silk at such high price. Fan replied confidently that the price was Hong Kong's retail price, however, there was no such kind of products at the market. Besides, the price was not at all high because it cost him $$5$ for buying plain silk and $$0\mathrm{.}36$ for printing. If the products were sold at European market, the price could reach as high as $$30.$ Fan further emphasized that since it was the first time they did business with each other, he hoped to establish good relationship first, so he actually offered her a favorable price.

Nicolar could not keep calm any longer. She offered $$4,$ $$4\mathrm{.}2,$ $$4\mathrm{.}3$ and finally $$4\mathrm{.}6.$Fan did not say no or yes. He simply said that there was a saying in Chinese: "Friendship exists despite of failure in business." Nicolar said no more and stepped onto her car and le

please give me the seller parte and the buyer parte