Exercise 1. Put the necessary word in the sentence.

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1. It is very difficult... without sound I 1 supply and

price policy. I demand

2. Of course we are interested in I

producing the... with the lowest unit I 2 volume of sales

costs. I

3. I decided to buy a new car at I 3 trade-in

this company because they offered I allowance

the best... on my old model. I

4. The... of this store are very beneficial I 4 compete

for a customer. I

5. Their business will fail if they I 5 price policies

persue unsound.... I

6. The government usually... for public I 6 credit terms

utility services. I

7. In pure competition the forces I 7 to set prices

of … operate.

Dialogue

Dick is introducing a new line of products and is talking to his friend Tom, a business consultant, about it.

Dick It's the first time when I'm in business for myself.

Tom Don't worry. The store has always been doing well. It has a great location and as far as your new line of merchandise...

Dick That's what I wanted to talk to you about. Can you give some ideas how to charge the prices?

Tom With pleasure. Generally, there are two types of pricing policies. There is price emphasis and price deemphasis.

Dick What's the difference?

Tom The price emphasis policy emphasizes low prices. This encourages sales. But low price doesn't give extra services.

Dick So, a really low price means no credit, home delivery, repair, installation and other services.

Tom That's what I mean. But many people are interested only in the low price and not in the extra services.

Dick Yes, and vice versa. The price which I set determines the number of sales. I must think thoroughly about it.

Tom A good example of price emphasis is " loss leader" pricing. It means that you choose one item - let's say an electric razor - at a price just above the cost. The customers will come to your shop to buy this loss leader item. But since they are inside they can decide to buy a few other things they need.

Dick It sounds interesting. What other things can you tell?

Tom There is also off-even pricing. Let's say you sell a tape recorder for $79.95 instead of $80.00. Though it is in fact about the same, the low price can produce a favorable psychological effect.

Dick What are the other ways to attract the customers?

Tom First of all, remember that you are going to compete with well-known products, so you should start with specially low prices. It's important to advertise this. You should use newspaper ads, maybe a radio spot, maybe do a big window and floor display.

Dick It makes sense.

Tom And you can raise the price after your customers try

a new brand get to know it and like it. They will continue to buy it.

Dick I see. And what is the price de-emphasis you mentioned before?

Tom It concerns high quality expensive items. Price de-emphasis means that you don't call attention to the price at all.

Dick I know, it concerns our fine jewelry department or designer fashions.

Tom Yes. I see you are going to do very well.

Dick Your suggestions seem to be very useful. Don't for get you have a discount on any shopping you do in my shop.

Tom In such a case I’ll be back tomorrow with my wife.

Active Vocabulary

M o d e l: The tape recorder is inexpensive. Your store sells the tape recorder.

The tape recorder that your store sells is inexpensive.

1. The dresses are fashionable. The store introduced the new dresses last week.

2. The store has many refrigerators. Dick owns the store.

3. The stereo is high-priced. My daughter wants the stereo.

4. The price determines the number of sales. A retailer sets the price.

5. Very often the people don't want extra services. Many supermarkets offer extra services.

6. Your shop should have loss-leader item. Loss-leader item will attract the customers.

7. Price de-emphasis works with high quality expensive items. Price-de-emphasis means that you don't call attention to the price at all.

location- место расположения

extra services- дополнительные услуги

installation services- услуги по установке

to charge prices- устанавливать, назначать цены

price emphasis- продажа товара за счет низкой цены

price de-emphasis- попытка продажи товара не за счет низкой цены, а за счет других факторов

loss-leader item- товар, продаваемый по очень низкой цене, служащей для привлечения покупателей

off-even pricing- цена, не доходящая до круглой цифры и стимулирующая желание покупателя купить

favorable psychological effect- благоприятный психологический эффект

to start with especially

low prices- начинать с особо низких цен

new brand- новая марка (товара)

high quality expensive item- высококачественный дорогой продукт

Vocabulary Practice

Exercise 1. Change the sentences according to the model.

Exercise 2. Change the sentences according to the model

Model: We won't introduce a new line of merchandise unless you suggest it.

We will introduce a new line of merchandise if you don’t suggest it.

1. Tape recorders are popular unless the price is too high.

2. The consumers will continue to buy unless they don't like the item.

3. The buyer can get installation services unless he wants to pay for it.

4. The salesman will help you unless he is too busy.

5. People won't try a new product unless there is advertising.

6. Customers won't buy the new brand, unless the price is low.

7. They won't raise the price unless it is necessary.

Exercise 3. Answer the questions.

1. In what way were the prices charged in this country?

2. What is your idea of the term market price?

3. What type of pricing policy works with the majority of consumer goods? (price-emphasis, price de-emphasis).

4. What is more preferable for you in pricing: low prices with no extra services or high prices with home delivery, repair and other services?

5. Why is it soimportant to have loss leader item in a shop?

6. What is off-even pricing made for?

7. How can your pricing policy help to compete with well known products?

Exercise 4. Translate into English.

1. Этот магазин предоставляет покупателю выгодные кредитные условия.

2. Товар имеет низкую цену. Она покроет затраты.

3. Эта фирма ведет неразумную ценообразовательную политику.

4. Прежде чем выпускать товар, необходимо тщательно изучить спрос и предложение.

5. Государство устанавливает цены на ряд продуктов.

6. Магазин имеет превосходное место расположения.

7. Супермаркет предоставляет покупателю много дополнительных услуг: доставку товаров на дом, кредит, установку и т.д.

8. Новая марка несомненно привлечет покупателей.

9. Начинайте с низкой цены.

10. Продажа за счет низкой цены действует при продаже товаров народного потребления.

Exercise 5. Set your imagination free.

You are a journalist and you are to interview the minister of finance about the pricing policy in this country. What questions would you ask him?

Grammar Exercises

Exercise 1. Make sentences interrogative and negative.

Model: They can change your credit terms at once.

Can they change your credit terms at once?

They can't change your credit terms.

1. They must research supply and demand before they start to produce the new item.

2. The company has to cover the costs by all means.

3. The middlemen may set the new price.

4. They can persue unsound price policies.

5. They must choose another location for their shop.

Exercise 2. Choose the necessary modal verb and put it in the sentence.

1. Off-even pricing... undoubtedly produce favorable psychological effect on a consumer.

2. I spoke with the chief. Now you... change the credit terms.

3. They are very talented specialists. I think they... design the new line very quickly.

4. The situation has changed, so we... start with specially prices.

5. We... choose price emphasis policy for this item.

LESSON 14

COMPUTERS

Text

The computer industry is one of the largest in western countries and especially in the USA.. It includes companies that manufacture, sell and lease computers, as well as companies that supply products and services for people working with computers.

A computer cannot think. A human operatorputs data into the computer and gives instructions. The operator writes instructions which determine the mathematical operations on information.. A computer solves mathematical problems very rapidly. Traditionally, the computer inbusiness is used to process data. This involves different administrative functions such as preparation of payrolls, inventory control in manufacturing, warehousing and distribution operations, customer accounting, billing by banks, insurance companies, public utilities and mass circulation magazines. Now the computer takes on new kinds of jobs. It has become more involved in business operations as an essential tool in making decisions at the highest administrative level.

Active Vocabulary

to give instructions- давать инструкции

to put data- закладывать данные

to solve mathematical решать математические

problems- задачи

to process data- обрабатывать данные

preparation of payrolls- подготовка ведомостей

inventory control- инвентаризационный контроль

warehousing- складирование товаров

distribution operations- распределительные операции

customer accounting- расчет с клиентом

Comprehension Questions

1. What does the computer industry include?

2. In what way does a computer operate?

3. How was the computer traditionally used in business?

4. What new kinds of jobs is the computer taking?

Vocabulary Practice

Exercise I. Choose the necessary word and put it in the sentence.

1. Distribution operations, preparation I 1 process data

of payroll are... functions that the I

computer performs for business. I

2. Computer is programmed to...fast I 2 lease

and accurately. I

3. If a small company cannot afford to I 3 inventory

buy a computer, they can... the I control

services of computer. I

4. A programmer feeds the... into the I 4 processing

computer. I

5. Many companies use the computers I 5 administrative

for their... I

6. A computer solves problems by... I 6 data and

information. I instructions

Dialogue

(Simona and Berg work in a large supermarket. Berg is the

Manager and Simona is the Head Buyer.)

Berg I'm so glad you had this business trip. I also would have liked to so but it's a problem for me to get away. Tell me everything about your business trip.

Simona It was really great, Berg. It was worth looking over the operations of the store. It's very well organized and I believe we should consider adopting some of the methods.

Berg Is it really so?

Simona Absolutely. Berg, their computer system is remarkable.

Berg Can you tell me more about it?

Simona Oh, sure. First, they've replaced their cash registers with special terminals.

Berg What for?

Simona They record on tape the department number, classification of items, amount of sale and name of salesclerk for each sale.

Berg Do you think we really need all that information on tape?

Simona We put on the same information on our sales checks.

Berg Yes, but in cases of exchanges we need to know all that.

Simona And for other things too.

Berg Well?

Simona For inventory control, for example. During the night, the tapes containing the information are fed into the computer.

Berg And then what?

Simona Every morning the computer prepares reports on the sales of the day before, classified by department and buyer.

Berg So, it is possible to have almost instant records.

Simona You are right. The inventory is kept up to date automatically. Imagine, how efficient we could be.

Berg It is great. But I think with the help of a computer we could offer more personal services to our customers.

Simona What do you mean?

Berg Having such up-to-date records and complete inventory we could keep records of birthdays and anniversaries and have gift suggestions based on customer records, and a million of other things.

Simona Don't hurry. Let's get going on first things first.

Active Vocabulary

Head Buyer- начальник отдела снабжения магазина

to adopt methods- внедрять методы

terminal- терминал, вывод, конец, граница

to feed the information закладывать информацию в

in the computer- компьютер

to date- вычислять подсчитывать

Vocabulary Practice

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