How to bargain with suppliers
In addition to negotiating with buyers, foreign trade clerks also need to negotiate with suppliers in some companies without factories. In the negotiation with the supplier, in addition to negotiating the price, it is also necessary to negotiate with the supplier in the face of customer claims. The first thing to understand is that the factory is more important than the customer. The market is huge, and customers can't finish it. However, there are only a handful of factories that wholeheartedly support and cooperate with you, and are your precious wealth. With the support and cooperation of a good factory, the price is advantageous, the product quality is stable, the delivery is timely, and the foreign trade salesman can successfully develop customers.
1. Don't look for factories to lower prices when there is no order, and even more avoid looking for multiple factories to lower prices when there is no order.
It is a very unwise behavior for a foreign trade salesman to find a factory to lower the price when there is no order. Not every foreign trade salesman can hold customers and orders. In the process of negotiating with customers, the foreign trade salesman should be able to feed back some information to the factory in time, so that the factory can feel your efforts and the process of negotiating the order.
2. When there is an order, tell the factory that the order is in hand, find the factory to bargain or force the factory to accept the target price.
After receiving the order, the foreign trade salesman should try to repay the price again. In theory, the factory's quotation can be reduced by at least 2%. But this part is part of the normal profit of the factory. When the salesman gets the order, don't tell the factory arrogantly that there is an order in hand, can you do it at XX price? If you can't do it, I have to find someone else to do it.
Usually, after we get the order, we will call the factory and tell the factory owner: I am negotiating an order now, the customer's sample has been confirmed, the customer is very interested, and everything else has been negotiated, and it is currently stuck on the price. The customer said how much higher than another supplier, and if we can reduce it to the same price, the customer will place an order soon. What do you think we are doing now?
Under normal circumstances, the factory owner has two reactions:
(1) I will check the price again and tell you. After that, the factory owner gave a lower price.
(2) The price cannot be lowered any further, and the profit is too low. There is no way.
If it is the case (1), get the new preferential price from the factory, and do not immediately place a contract with the factory. The foreign trade clerk should place the order again the next day. This will make the boss of the factory feel that the salesman has a strong ability to take orders and grasp customers. The price was supported, and he got the order. The factory owner subconsciously feels that he and the foreign trade salesman worked hard to win the order. Therefore, for such a salesman, he will also be happy to give price support.
If it is the case (2), the factory really has no way to support the price, so don't immediately place a contract. Then I told the factory owner like this: This customer said that he was very satisfied with the quality of our samples, and we were very professional in answering several of his product questions. The customer said that the current product is selling well, he is ready to supply it to the supermarket, and hopes that we will support him in the price. But if the order price is very low, you don't make money and we don't make money, that's not interesting. Well, I will communicate with the customer again, and if the customer has any feedback, I will let you know as soon as possible. Then the next morning, I called the factory owner: I talked to the customer last night, and I told the customer that our factory manager had calculated it over and over again, and the price was still difficult to make. Later, the cost was explained to him in detail, & the customer finally agreed the price and signed the order. I will send you the contract this afternoon. Then the factory owner will be very happy.
3. Don't show the price card too quickly when negotiating the price with the factory, don't say how much you drop, I can get the order and so on.
Because sometimes, you never know the trump card of the factory price. Maybe the factory is very busy these days, and the orders are too late to make. Maybe there are not many orders in the factory these days, the production is not busy, the factory is worrying and giving a particularly low price. Patiently listen to the various complaints of the factory owner about the difficulty of doing business, express your understanding, and wait for the result.
4. Reasonable counter-offer A foreign trade salesman, no matter what product he makes, must try every means to understand and be familiar with the product.
The price of raw materials, the production concentration of raw materials, the difference between different kinds of raw materials, the machines that produce raw materials, the production process of workers, the working methods of machinery and equipment, the material properties of products, the daily output, and the problems that will occur if you do not pay attention to workmanship , the cost of each link, etc. When you are familiar with these, you can tell the factory directly about those factories that want to slaughter you. I have been doing it for so many years, and I know the cost of the factory. Why do you quote such a high price? This price has no sincerity at all. Quote a reasonable price and we'll talk. Find out the cost of the product, and you can be the most efficient when you counter-offer.
5. Remind the factory to pay attention to the way of price reduction.
If you want the factory to lower the price, you don’t have to tell it through your own mouth. You can change the target and say this to the factory: Customers have reported that other suppliers have been lowering prices recently, and the prices quoted are much lower than before. Customers are now asking us for new prices. I took a look at the recent trend of raw material prices, and it is true that they have dropped a little in the past two days. You can check the price again, I will report it to the customer. If the customer happens to have an order recently, we will try to get it. In this way, the factory will be able to accept some.
6. Consider whether to haggle the price according to the busy production situation of the factory
For example, the factory has been very busy recently, and the order delivery schedule is very full. At this time, you should be wise, give up haggling and place an order directly because the factory owner does not have the time to haggle with you. For some pure hand-made products that even need to be folded and packaged by hand, such products have low output and require labor, so don't bargain. Hurry up and place your order. Even add a little bit to the price to the factory. If the factory has not been in tight production recently and the orders are insufficient, the price will be bargained at this time. The factory owner will carefully calculate the cost and then give you a good price.