Section 3 Targets of international business price negotiations

      The basic purposes of price negotiations for the negotiators are different.

     1. For the seller, the basic goal is keep a break-even price, i.e., the sum of related costs, expenses, and the lowest expected profit. It is the lowest amount or cheapest price you will accept in the deal. The other targets are derived based on the break-even price target during the period from the trade establishment to contract performance, such as the interest discount, potential adverse change trend of the market price, and currency risk, etc.

      2. For the buyer, the basic goal is to establish any price beyond the floor price in the price target based on the past experience and collected information on the market. The floor price is the highest price the buyer is willing to pay. Usually the buyer's floor price is always higher than the seller's break-even price as long as the negotiators have more comprehensive and accurate information to the market. Thus, in the price negotiations, the negotiators are easy to reach an agreement that is acceptable to both sides.

3.1 The best target

3.2 The intermediate target

3.3 The acceptable target

‍Section 3 Targets of international business price negotiations

     The basic purposes of price negotiations for the negotiators are different.

 1. For the seller, the basic goal is keep a break-even price, i.e., the sum of related costs, expenses, and the lowest expected profit. It is the lowest amount or cheapest price you will accept in the deal. The other targets are derived based on the break-even price target during the period from the trade establishment to contract performance, such as the interest discount, potential adverse change trend of the market price, and currency risk, etc.

  2. For the buyer, the basic goal is to establish any price beyond the floor price in the price target based on the past experience and collected information on the market. The floor price is the highest price the buyer is willing to pay. Usually the buyer's floor price is always higher than the seller's break-even price as long as the negotiators have more comprehensive and accurate information to the market. Thus, in the price negotiations, the negotiators are easy to reach an agreement that is acceptable to both sides.

3.1 The best target

3.2 The intermediate target

3.3 The acceptable target‍