While sourcing your product from China, you may come across the product that you are looking for. You must have examined the specifications and determined that it satisfies your needs.
The supplier also has enough production capacity to deliver the item as much as you need.
This is the time when you have to choose the appropriate price to ensure that you have adequate margin to make a profit after importing the product from China. It is here you need to have a proper skill of how to negotiate price with supplier.
Let us discuss in this post the various steps that are involved while negotiating the price with your Chinese suppliers.
1. Verify your supplier after due diligence
Before you start the negotiation, it is important that you verify the background of your supplier. It is important to know that your supplier is a registered company and financially sound. Also, you must audit your supplier’s production set-up.
2. Find quote from a few more suppliers
Before you start your negotiation process, you must identify at least 5 to 8 similar suppliers in China and get a price quotation from them to know the price range of your product.
3. Ensure quality
Before entering into a price negotiation, it is also important that you are satisfied with the quality of the product that you intend to buy from your Chinese suppliers.
4. Decide on MOQ
MOQ (Minimum Order Quantity) is one of the most important parameters based on which your final price will be decided. If your order quantity is not sufficient, then you do not have enough scope for price negotiation.
5. Build a trust with your supplier
It is important that your supplier perceive you as a genuine buyer. If your supplier gets the sense that you are not going to be a long-term buyer, then he may not take enough interest in doing business with you.
6. Verify business terms
Before negotiation, you must first settle all the business terms amicably. Make sure that both you and your supplier are in a win-win situation if you want to get a better price deal.
7. Be an honest customer
Honesty fosters trust and clarity in negotiations, ensuring both parties understand expectations and preventing misunderstandings or unmet expectations.
Conclusion
While negotiating the price, make sure that your supplier can also have enough margin. Otherwise, it is very likely that your supplier will compromise the quality and their services.
