10 Top tips on Price Negotiating with the Chinese Supplier
- 1 Tips on price negotiating with Chinese suppliers
- 2 1. let the supplier know you have done research
- 3 2. Review your position in price negotiating
- 4 3. Find out the supplier’s position in China’s market
- 5 4. Set a target price
- 6 5. Price negotiating; Pay attention to supplier’s profit, too
- 7 6. Select the right time for price negotiation
- 8 7. Always have an alternative supplier
- 9 8. Know the raw materials price in price negotiation
- 10 9. Build relationship with supplier and mutual trust in price negotiating
- 11 10. Choose the shipment method
- 12 Summary; price negotiating
- 13 About us
In this article from the DDPCH website, we will point to 10 best tips on price negotiating when importing from china with the Chinese suppliers.
When you want to import products and services from China, there as several steps which you must follow. One of these steps is negotiating for lower prices with Chinese suppliers or manufacturers. But you must select the right and reliable supplier before negotiating for lower prices.
As an experienced importer from china, you know the fact that selecting the right suppliers makes a big difference to the quality and prices of the products and services of your company.
For people without much experience in importing from china and who do not have enough information about principles of negotiating with Chinese suppliers, this area could be as much as intense as it can.
table of contents:
- let the supplier know you have done research
- Review your position in negotiating
- Find out the supplier’s position in china’s market
- Set a target price
- Pay attention to supplier’s profit, too
- Select the right time for price negotiation
- Always have an alternative supplier
- know the raw materials price in price negotiation
- Build a relationship with the supplier and mutual trust
- Choose the shipment method
- About us
Keep reading the ddpch.com article and learn the best tips to negotiate for lower prices with the Chinese suppliers.
Tips on price negotiating with Chinese suppliers
In this section, we will highlight several facts and tips that you must use when negotiating with Chinese suppliers for prices and even lower prices.
1. let the supplier know you have done research
Show the selected supplier that has done your research before selecting him. In this case, you will know the advantages and disadvantages of each supplier or manufacturer. On the meeting with suppliers, do not hesitate to use your information to your advantage.
For example, you start your meeting with such a sentence: “You said you sell this product for 15$ for a part. Is it right? Company B in their quote announced they will sell this product for 10$ and even pay the delivery costs themselves. I test the quality of their products which was meet with our specifications and requirements” in this way, supplier could not sell their products with higher costs and even lower qualities.
You may interest in reading How to find the best supplier in Alibaba marketplace?
If the supplier intends to sell you his products, doubtlessly, select one of these two options:
- lower the prices
- Do not lower the prices but offer you other areas which would benefit you; Such as lower the prices in case you order more products or set a longer period for credit terms.
2. Review your position in price negotiating
You must be clear about your position in negotiating before meeting the suppliers or manufacturers. Know your specifications and requirements well. Try your best to have the upper hand in negotiations.
The Chinese supplier tries to sign a contract with you if you are a potential consumer. And as you know, they are several suppliers and manufacturers in this country which will desire to work with potential importers.
let them know your intended product quantity. As a result, if you think that you have the capability to import more products, use this factor for your profit.
3. Find out the supplier’s position in China’s market
For the best results in the price negotiating process, gather enough information about the supplier’s position in China’s market. Then, try to identify their priorities. In this case, the negotiation will become a win-win process.
For example, just on occasions, you can buy the products with lower prices that offer prompt payment to the selected company.
Another key factor to getting discounts from the selected supplier in China is to pay an initial deposit. Usually, you can pay 30% at the time of placing the orders and 70% before shipment.
Sometimes, you have done your research and find out that the selected company is not big and reputed one in China but offers high-quality products. You can use this factor and buy the products and services at much lower prices.
Important note: make sure the selected company is not a scammer one.
4. Set a target price
You need to set your target price for the tested product before you can engage in price negotiation. It is suggested to contact the suppliers and ask them to announce their offered prices. In the stage of receiving the sample products, you can ask about the prices.
As the competition in the market of China is high, the supplier first asks your preferred prices. o not forget that your selected price must be realistic.
5. Price negotiating; Pay attention to supplier’s profit, too
Most businessmen that want to import products and services from China, do not understand that getting high discounts is somehow impossible. For example, you do not expect that the supplier makes the prices lower by 10% to 15%.
If you are looking for more than 5% discounts, it seems that telling them that just my profit is important and not caring attention to them.
sometimes, although the supplier or manufacturer accepts to sell the products with more than 5% discounts, lower the quality of products or services accordingly.
As you know, the quality of imported products guarantees the survival of your company. low-quality products threaten your successful company.
Important fact: Always it is suggested to check the quality of products and services in all the stages of production. in this case, you immediately understand the low quality of products. then you can make your decision.
Our technical staffs in the ddpch company can check the quality of products for you and then send you a detailed report. We are familiar with most of the suppliers and manufacturers in China. Therefore, select a supplier who offers low prices with high-quality products.
6. Select the right time for price negotiation
Select the right time for price negotiation is very important. You can not start negotiating after you place an order.
When you place the order, the supplier or the manufacturer thinks that the consumer is agreed with the prices.
You have to negotiate prices before placing the order. This process needs many patients and could not be done over a night.
Select several suppliers and then start negotiating and hear their offered prices.
7. Always have an alternative supplier
Sometimes, we see that just before you place your orders, the supplier or manufacturer tries to increase the prices.
In this situation, not only do they not accept price negotiation, but also have a logical reason for themselves. If you ask them, they say the taxes go up, have to pay the labors wages and so many reasons like this.
If you want to import products or services from China and suddenly face this type of supplier, no need to get worried. always have an alternative choice.
Select the next supplier and try to negotiate about prices with them. The chance to get discounts is highS
We suggest not to work with this type of supplier. Because if they do such behavior once, there is no guarantee they would not repeat it in your next orders.
8. Know the raw materials price in price negotiation
When you want to import your required products or services from china, you must show the supplier that knows the updated prices of raw materials.
By knowing this information, suppliers have no other logical reason to increase the prices.
Read more: Top tips about FBA service from China 2020
For getting the latest prices for each material, you can contact our specialists. They inform you of the latest prices.
9. Build relationship with supplier and mutual trust in price negotiating
When you want to import from this country, one important thing is to communicate regularly with the supplier or manufacturer.
As they are aware of new products and technologies which might suit to your needing, it suggested asking their opinions.
If you build a relationship in which the supplier trusts you, in your next orders you could this factor for your profit. For example, pay the costs in longer periods or buy without paying the deposit.
10. Choose the shipment method
The other important factor which affects the overall costs of importing products or services from China is the method of shipment.
It is suggested, depending on the type of your products, choose the sea freight for transportation of your goods.
The costs of air freight and express methods are much higher than sea freight. However, it should be noted that sea freight takes a longer time and usually take 30 to 40 days to arrive at most ports in Europe and North America.
As the time for sea freight is longer, try to book the transportation in advance.
Summary; price negotiating
In this post from the ddpch website, we try to point to 10 top tips which you could use in your price negotiation. learn and use these price negotiations in your next deals.
DDPCH have been offering Sourcing, Buying Agent Services for many worldwide clients; We offer sourcing buying agent services for different kinds of clients, such as chain store, importer, distributor, Amazon Seller, eBay Seller, and other online sellers.
DDPCH as an only sourcing agent in China that at the same time offer door to door (Air, Sea, Express) shipping service for all customer that use our service.
With DDPCH product sourcing, you can be sure always have the best quality and price for any product from china, and finally, we deliver your order at your company or home in any country