Almost in any industry, manufacturers and traders abroad have to source products from Chinese suppliers. Chinese sellers provide the most competitive prices for all kinds of companies across the world. However, a good salesman knows that there is always a better price. Therefore, as it is almost impossible to go to China now, online negotiations are critical to getting a competitive quotation.
The problem is that often foreign buyers struggle to bargain for a better price. Although there are many online B2B market places to reach generic prices, buyers fail to lower the listed price on 1-on-1 negotiations.
This week we decided to pile our negotiation strategies and methods for foreign companies that find it challenging to negotiate and receive a better quotation with lower prices.
Except for China and Southeast Asia, WeChat and QQ are rarely used. So you might not even have heard those apps but in China most seller use WeChat exclusively although they also have Facebook, LinkedIn, or WhatsApp accounts. So, you should register for Chinese instant chatting software like WeChat and contact the sellers from here.
First impressions are always important; leave an impression on Chinese vendors that you know your way around Chinese market.
Of course, this might not be possible for every product, but you should keep in mind that Chinese vendors always add a bargaining gap to the price of the products. So, for example, if you receive a quotation for 10$, it is very likely that a good deal is below 8$.
We had seen many business deals just ended up with a failure when the buyer outburst with anger or tried to push the suppliers for a better deal just too hard, even though everything was already arranged. Business negotiations in China are very much similar to implementing a strategy. You should keep in mind that until the contract is signed, the deal can be put off at any point.
You should remain calm, refrain from blaming the other party or using rough language. Buyer’s assertiveness is a big red flag for suppliers, and they know that if you can’t handle problems now, you won’t be able to in the future as well.
When you negotiate with your Chinese business partners, you will probably face the same questions again and again. Sometimes your partner may even give you a different response regarding lead and delivery time. You need to stay calm and patient.
The motive for this behavior is to wear you down and get you more impatient to settle down for a higher price. However, business negotiations in China take a long time, and you need to learn not to urge your supplier; instead, show them you are patient enough to get what you want.
As we mentioned earlier, business negotiations are similar to playing chess. There will be many questions, comments, and topics that will seem irrelevant to the deal during your business meetings. Keep in mind that these are small tests to check your attitude and reactions. Try to remain calm and somehow distanced.
If are impatient and overly eager, you are signaling that you are willing to lower your expectations or accept even a worse deal. When they are interested in a sale, Chinese vendors tend to take it slow and create minor problems to see your cards. In the same way, you should take it slow and let them play their hands to lure you into the deal again.
China experts often stress that business negotiations in China are too complicated to handle for foreign buyers. Yet, you should be patient, relatively slow, positive, and calm at all times. It is a tit-for-tat game, so don’t expect to get a better deal through assertiveness. Likewise, cultural and linguistic factors play a critical role in business negotiations.
If you have trouble finding a better deal or would like to verify your suppliers, it might be best for you to work with an intermediary company. GlocLink Consultancy helps its customers by verifying their suppliers in China and handling business negotiations with you. You can always contact GlocLink Consultancy to learn more and find the best business partners in China.