Unit 13 Money Teaching Objectives This unit aims to enable the learners to: take part in a business negotiation understand some basic ideal in finance management write a letter chasing payment Time required: 4 hours

13.1 Negotiating the price Look at these situations. How are they different? In which ones can you negotiate the price?

B. Listening In addition to price, there are other matters customers can negotiate with their suppliers. Listen to their conversation and mark the things they negotiate. quantity delivery date discount method of payment

C. Study these ways of making conditions: First conditional lf [you're prepared to wait], / [you take the rest], We’ll reduce the price. I’ll reduce the price, if you [pay cash. / buy 1000 pieces.] Now practise this conversation with a partner. Ask about the price. State price. Reject it. Make an offer. Make an alternative offer. Accept or reject it.

D. Practise negotiating. Learner A looks at File 35 on page 117 and Learner B looks at File 36 on page 121.

13.2 Getting paid A. Discuss these questions with a partner: When do you pay your personal bills? What would happen if nobody paid their bills on time?

B. Listen to this extract from a radio programme about payment times and complete the missing figures. CountryAgreed timeAverage time Sweden 4 8 Denmark 30 Finland UK Italy 60 France 108

C. Read this extract from a business magazine and fill in the correct headings. a Collect your payment on time b Set up a system c Check your customers' ability to pay d Keep clear and accurate records b Set up a system e Set out your terms of trading

How to collect money on time Follow these guidelines to make sure you get paid on time (1) --- before you offer them credit. You may also want to check them with other businesses or ask for bank references. Make these checks at regular intervals (2) Be specific about when you expect payment, for example, 30 days from the date of the invoice. Make sure your customer knows the terms before you do any work.

(3) which enables you to issue invoices promptly and show you when invoices become overdue (4) Incorrect invoices or unclear records are among the main reasons for delaying payment. Make sure you send invoices punctually, to the right person at the right address.

(5) - install a collections routine. Keep records of all correspondence and conversations. Give priority to your largest accounts, but chase the smaller amounts too. If a customer promises you a cheque and it doesn't arrive, chase it straightaway. If regular chasing does not produce results, consider stopping further supplies to the customer. If payment is not obtained, ask a debt collector or solicitor to collect the money for you.

Reread the article and answer these questions: 6. How can you check that your customers can pay you? 7.What are some of the main reasons customers do not pay punctually 8. What should you do if a customer does not pay on time? Do you agree with the suggestions?

D. Match a word or phrase in the text with these definitions. a. ability to buy now and pay later b. immediately c.late d. not doing something until a later time e. regular customer of a company f. sending reminders to try to get payment

13.3 Chasing payment A. Read this letter on p.76. Why has it been written? We regret to inform you that payment of the enclosed invoice is now 30 days overdue. We look forward to receiving payment from you without delay. Yours sincerely We regret to …—we are sorry to …is 30 days overdue

What information is missing from this invoice? What questions can you ask to complete it? B. Listen to Tara Patel phoning Kurt Chezdoy and complete the missing information in the invoice above.

C. Study these ways of making promises. We'll send you a cheque [when]/[ as soon as] we receive the goods. Here are some reasons for not paying an invoice. a. We're still waiting for another 50 pieces. We'll send you a cheque as soon as we receive the rest of the consignment. consignment----goods b. You sent the invoice to the Purchasing department. c. The consignment was faulty. faulty--wrong

d. We ordered 1,000 and you billed us for 1,500 bill-- e. I’m afraid we’re rather short of cash. be short of--- f. I’m sorry. I’ve mislaid the invoice.

Match the reasons to the promises below. Then make sentences like the example in the speech bubble in a I find it our cash flow situation improves the Accounts department gets the invoice you send us a corrected invoice we receive a replacement. 6..a... the rest of the consignment arrives.

D. Role play. Practise chasing your customers for payment! Learner A looks at File 37 on page 119 and Learner B looks at File 38 on page 124.