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Jerry:I love your little Lulu dolls.How much for a batch of 6,000?
Catherine:For a batch of 6,000 we would charge two dollars a doll.
your total cost would be $12,000.
Jerry:That’s a little steep for our company.
Do you offer any discounts ?
Catherine:Well,we’d like to work with you.
If you ordered a larger quantity we could drop the price a little.
Can you increase your order to 15,000?
Jerry:Hmmm.It wouldn’t be easy,
but if the discount makes it worthwhile,we can consider it.
How much of a discount would that give us?
Catherine:For order of 12,000 or more we charge only $1.5 a doll.
your total cost would be $18,000.
Jerry :So, for an additional 6,000 dollars,we get twice as many dolls?
That still might be a little hard.
Couldn’t you discount it further?
We’ve been pricing other suppliers,
and this discount might not be competitive enough for us.
Catherine:We do value your business.
I think I can offer a further discount –say 5%?
Jerry:I think we can handle that.
Let me confirm with my boss and touch base with you again tomorrow.