L E S S O N F O U R

PRICING AND SALES

Words to be remembered

1. to quote - назначать цену; quotation - расценка, котировка; предложение; 2) total - общий, весь, целый; total - сумма; 3) to calculate - подсчитывать; вычислять; calculation - расчет; 4) unit - единица; изделие; 5) to deal in - заниматься чем-л., торговать чем-л.; to deal with - иметь дело с чем-л. (кем-л.); deal(ing) - сделка; 6) to involve - заниматься чем-л.; включать в себя; 7) invoice - счет-фактура; 8) account - счет, отчет (финансовый); accountant - бухгалтер; 9) to sign - подписывать; signature - подпись; 10) receipt - квитанция, расписка; 11) bill - счет; вексель; 12) transaction - сделка; 13) to exchange - обменивать; exchange - обмен; валюта; биржа; 14) to dispatch (despatch) - отправлять(посылать) по назначению; 15) to state - заявлять; statement - отчет; заявление; 16) to advise - советовать; advice - совет; 17) to handle - зд: обрабатывать, оформлять (документы); 18) agent - посредник, представитель; 19) to run - управлять, руководить; 20) fee - вознаграждение, гонорар; 21) to amount (to smth.) - равняться чему-л., составлять сумму; amount - сумма, количество

Ex. 1. A. Read the following terms and find their Russian equivalents

1) current account; 2) deposit account; 3) unit price; 4) profit margin; 5) Accounts Department; 6) to have an account in (with) a bank; 7) personal account; 8) settlement account; 9) delivery note; 10) exchange rate; 11) to give a quotation; 12) production costs; 13) to conclude a transaction; 14) to withdraw from a bargain; 15) storage cost; 16) advice note; 17) production capacity; 18) balance sheet; 19) to draw (withdraw) from an account; 20) stock exchange; 21) overdraft; 22) to overdraw; 23) forward exchange cover; 24) cost sheet

а) единичная (штучная) цена; б) стоимость складирования; в) лицевой счет; г) назначать цену; д) бухгалтерия; е) расчетный счет; ж) заключать сделку; з) текущий счёт; и) иметь счет в банке; к) транспортная накладная; л) производственная мощность; м) обменный курс; н) отказаться от сделки; о) балансовый отчет; п) разница между себестоимостью и продажной ценой (размер прибыли); р) издержки производства; с) авизо (oфициальное уведомление об исполнении расчетной операции); т) фондовая биржа; у) депозитный счёт; ф) снимать деньги со счёта; х) овердрафт (превышение кредитного лимита); ц) допускать овердрафт (превышать кредитный лимит); ч) форвардное покрытие валютного рынка ; ш) калькуляционная ведомость

2. Translate the following sentences from Russian into English.

1. Балансовый отчет показывает финансовое положение компании за данный период. 2. У Вас есть счет в Сбербанке (Savings bank)? - Нет. У меня есть только валютный счет в одном из коммерческих банков. 3. Вы можете узнать расчетный счет нашей фирмы в бухгалтерии. 4. Наши изделия пользуются большим спросом, и мы можем позволить себе увеличить разницу между себестоимостью и продажной ценой на 15 процентов. 5. Мы отказались от сделки, так как платёж наличными нас не устраивает (to suit). 6. Если Вы купите товар оптом, то штучная цена будет на 10 процентов меньше. 7. Транспортная накладная должна быть подписана в бухгалтерии. 8. Мне хотелось бы узнать курс обмена доллара к фунту. 9. Мне нужно больше времени, чтобы подготовить балансовый отчёт. 10. Мы заключили выгодную сделку на поставку крупной партии (consignment) электронного оборудования из Японии.

Ex. 2. A. Give synonyms to the following words

to charge (2), bargain (2), financial report (2), sum (2), item (2), to count (1), overall (2), foreign currency (1), convertible currency (1); unconvertible currency (1); to trade (1); to manage (1), dealer (1); to be engaged in smth (1); book-keeper (1).

2. Substitute the underlined words by synonyms and translate the sentences.

1. I can charge a price lower than anyone else. 2. He tried to calculate how much he had spent on gasoline. 3. Interest rate is a sum paid by the borrower for the use of the money lent. 4. Mr.Smith owns a shop that deals in consumer goods of all sorts. 5. In the USA the prices listed on items in the department stores do not include sales tax; it will be added to your bill by a cashier. 6. Diana had never met the owners of the house which she rented through an agent. 7. The chief book-keeper signs all the contracts that have been concluded by the enterprise. 8. Both parties are free to withdraw from the bargain before the contracts have been signed. 9. The total number of people who visited the supermarket on the first day it was open to the public was about 5000. 10. According to the terms of the licensing agreement the De Longhi name will be used on 500,000 units. 11. The auditor wasn’t sure that the financial report showed a true picture of the firm’s affairs.

Ex. 3. Build up sentences by arranging the words in their proper order.

1. are published; the latest quotations; in all periodicals; on the foreign exchange market. 2. to Chicago; Jim; the cost of travelling; calculated. 3. mass production; there are; batch production; manufacturing; unit production; three kinds of. 4. with a German company; to buy steel; made; we; a deal. 5. we received; we have spent; the accounts show that; more than. 6. when opening; is given; a check book; an account; by your bank. 7. the check; he; to sign; forgot. 8. Dr. Allison; for a consultation; a fee of $ 60: charges. 9. are packed; and; the goods of your order; ready for despatch; N234. 10. On a total budget; was made; the film; of 3 million dollars.

Ex. 4. Translate the following sentences from English into Russian

1. The coffee, we bought from you, was not the quality we had expected for the price quoted. 2. A cheque is a written order to a bank, given and signed by someone who has money deposited there, to pay a certain amount mentioned on the check to a person named on it. 3. Last year IBM paid USD 12 million in legal fees to a single law firm. 4. Ask the shop for a receipt when you pay a bill. 5. Foreign exchange prices are influenced by economic and political events and sometimes by the speculation of individual traders. 6. We don’t buy equipment from a store - we deal only with the manufacturers. 7. Invoice is a list of goods sold with the prices quoted. The invoice is an important document in the export trade, because copies may be required by banks, export/import agents, shipping companies and consultants. 8. A company writes its accounts each year to show its expenditures (the money it spends) and its earnings (the money that comes into the company). The accounts are written in a book called a ledger. 9. Sally calculated that after paying all her bills she would have $ 100 left. 10. A good manager will try to involve everyone in the decision-making process.

Ex. 5. Open the brackets putting the verbs in the appropriate tense forms and translate the sentences.

1. The quoted price (to include) packing in special export cases. 2. I ( not want) to put my money into the current account because the interest is too small. 3. You (to receive) your copy of the contract in two weeks after making a deal. 4. The ordered goods (to arrive) today in good condition and your invoice (to check) and (to find) correct. 5. The invoice (to send) to the customer by post, or through an agent or a bank. This method of payment (to call) payment on invoice. 6. When you (to open) a bank account you (to require) to fill in a special form. 7. The official signing of the agreement (to take place) tomorrow. 8. IBM (to manufacture and to sell) a complete range of computer products: from CDs to mainframe systems. 9. Enormous amount of currencies (to buy and sell) every day on the foreign exchange markets. 10. Old banknotes can (to exchange) for new banknotes in the banks.

Ex. 6. Fill in the blanks with the missing words given below.

1. One of her hobbies is collecting the ... of famous singers. 2. Having studied the ..., I concluded from the figures that the firm is in serious financial difficulties. 3. We expect to make a large profit on this ... 4. I need $ 10,000, but I’ve got only 2,000 in my deposit ..., so I’ll have to ... the rest from the bank. 5. One safe and convenient way of travelling with large ...of money is to purchase traveler’s checks, which can be bought at most banks usually for a 10% ... of the amount of the checks. 6. Although the consultant’s ... was high, his guidance and advice were well worth the money. 7. Current account enables people to keep their money in a safe place, to draw it at any time and provides them with a cheque-book so that they don’t have to carry a lot of ... .8. Jane was given a position that required her to ... directly with customers because of her highly developed communicative skills. 9. The dollar serves as the ... by which the value of international goods and services are priced. 10. The dress shop manager chose to ... only with domestic fashion designers rather than expand into foreign lines.

borrow, signatures, unit, amount, account, cash, deal, balance sheet, fee

Ex. 7. Don’t mix up the words: to supply, to deliver, to despatch. Complete the following sentences with the appropriate form of one of them.

1. He has been our sole ... of steel for 20 years. 2. We expected ... by the end of the month. 3. We have asked them to quote for ... 20 units per month. 4. When I phoned the ... about our ..., he said it hadn’t even been ... from their depot. 5. The department is responsible for checking all finished goods before they are ... . 6. ... who can’t ... on time will not survive.

Ex. 8. Match the following definitions with the words given below.

1. A person who holds shares in a company; who has invested in a company. 2. Money all businesses and private individuals must pay to the government on their earnings. 3. A request from a customer to receive goods or services. 4. Money that are borrowed from a bank or some individual. 5. Goods allowed to come into the country without being taxed. 6. A sum of money kept in a bank which may be added to or taken from. 7. A system of buying goods or services and paying for them later. 8. Money gained by trade or business. 9. The price at which you can buy and sell foreign currency. 10. A request for information about a product or service prior to placing an order. 11. A contract between the bank and its customer which fixes the rate at which a company exchanges foreign currency so that they do not lose money if the exchange rate changes.

shareholder, exchange rate, forward exchange cover, tax, profit, order, loan, account, enquiry, duty-free, on credit

Ex. 9. Problem solving.

Suppose you want to buy a ton of paper for your printing house. Choose 3 suppliers among your group-mates and send them letters of enquiry. Ask your suppliers: a) about the wholesale price of paper; b) if he can give you a discount in case you buy in bulk (5 tons); c) if he can slightly cut the price in case you pay in cash; d) about the terms and schedule of delivery.

Compare the answers of 3 suppliers and make your choice. 1) Who quoted you the best price? 2) At what price did you finally buy the paper?

text a

PRICING AND SALES

Read the text replacing Russian words by their English equivalents. Put ten questions to the text.

Before a company can (назначать цену) for goods, they must (принимать во внимание) all their costs: (издержки производства), shipping, insurance, etc. The (сумма) of all these costs is called (общая стоимость). The costing is usually done before a model is produced or exported, so the company must (подсчитывать) their total costs in advance. From these figures they can work out the cost of each model which is called (штучная цена). All the (расчеты) are written on the (калькуляционная ведомость).

The company also takes into account their (прибыль). They will usually allow a (разница между себестоимостью и продажной ценой) of at least 10 percent. So when a company (назначать цену) for a model, they have built into the price their (общая стоимость) and profit margin.

There are other factors which affect the price of goods, for example the law of (спрос и предложение). If a product (пользоваться спросом) and not many firms can (поставлять) the product, then the company can quote a higher (единичная цена). On the other hand, making goods in large quantities is comparatively (дешевле) than producing goods in small quantities. If there is a big demand for a model, a company can manufacture it in large quantities and they should be able to charge a lower (штучная цена).

Two of the departments in a company which (заниматься) in (ценообразование) and selling goods are (отдел сбыта) and (бухгалтерия). The Sales staff handle the basic forms involved in selling goods (the order and the delivery or advice notes), and the Accounts staff handle the forms involved in charging for goods (the invoice and the statement). The form sent by the buyer requesting goods is the (заказ). The form which accompanies the goods or which is sent to the buyer to tell him to expect the goods is called (транспортная накладная). The buyer signs the delivery note which is then a receipt for the seller to prove the buyer received the goods. (Отдел сбыта) then gives the signed delivery note to the (бухгалтерия) which sends the buyer a bill for the goods. This bill is called an (счет-фактура). Usually the Accounts Department will send the buyer an account each month which shows details of all the financial (сделки) that month. The account is called a financial statement.

text b

Glossary

1. to hear something on/through the grapevine - to hear news unofficially; 2) to go bust (coll.) - to go bankrupt, to lose all one’s money; 3) tannoy - loudspeaker system for giving messages to the public

Episode 4 OFF TO A TRADE FAIR

S c e n e o n e

Paul Osman is leaving for the Trade Fair. He is talking to Tim Hasram at the airport.

Tim: I heard Jack had already despatched the bikes to Industria.

Paul: Right, if everything goes well they will be delivered in three days. Chris Mayor has arranged with Mr. Sindon to help me. He is a Commercial Attache at our Embassy. I hope he‘ll find us an agent in Industria.

Tim: Mr. Osman, I’ve been looking at the costing sheets in the car. How did you decide on the price of the bikes?

Paul: Well, it’s difficult to be precise at this stage. It really depends on how big the orders are - the bigger the order, the lower the unit cost of each bike. But Jack and I thought a price of about 600 utiles or 100 Industria pounds at the present rate of exchange, would be a safe estimate.

Tim: Hm... well, that will give you a profit margin of 10 percent. But what about the exchange rate? If the pound falls, you may have to raise your price or take out the exchange cover.

Paul: You’re right, of course. But we can deal with that later. The most important thing now is to sell. So, we quote a price of 600 utiles and take it from there.

Tim: By the way, I have two good news.

Paul: You’ve got me interested...

Tim: Well, the first thing is that three new retailers in Dabu have placed orders for the new bike.

Paul:(laughs). It was a good job, Tim! You’re an ace salesman!

Tim: That’s not all. Barratts have overordered from their manufacturers and are having trouble getting an overdraft.

Paul: How did you find this out?

Tim: Kamal heard it through the grapevine.

Paul: I see... are Barratts going bust?

Tim: No, but they are having to go round the retailers and ask for repayment of credit. The retailers aren’t too pleased. I’ve already had one of them on the phone asking if Jayal Motors can supply instead.

Paul: Well, well. This is good news. If this continues we are going to need that new assembly plant sooner than I thought.

T a n n o y: The 11.40 flight for Industria is boarding now. Gate No. 5.

Paul: Oh, that’s mine. Bye, Tim, and thanks for the lift.

Tim: Goodbye, Mr. Osman. Best of luck.