Foreigners in China as a procurement

To create a win-win situation

Always remember to motivate their Chinese business partners. To clear to let them know that in the cooperation can obtain benefits, and to ensure that every transaction can maintain a win-win situation.
When I first began to set up electronic products company, my bank have no money, no money. When I talk to some Chinese factories under order 10000 sets of electronic products, all the factory sent me the quotation. I choose one of the best cost performance. Then I told them that what I want is a trial order for your order, now only need 80 units. They due to small order cannot make them profitable, and disrupted their production schedule And refused to cooperate with me.
Later I found I seek cooperation company is very big, but I received quotation is “chinglish” and very unprofessional. A table can have 15 different fonts and colors, without a central content, the product description is not achieve what they want. Their electronic products user manual is not logic, and many illustrations.
I spent a few days for the manufacturer to redesign the electronic product instructions, and sincere told them: I don’t have the ability to bring huge orders for you, but I can help you to design the manual, buyers have be satisfied.” A few hours later, the manager of the factory reply me, and received my order of 80 units, and the price is even lower than previous. (when we could not reach the requirements of customers in some ways, in order to save customers can also say similar things with the client.)
A week later, this factory manager told me that they won the very many users in the us market. This is because in many competitive companies, their products are the most professional, and product data sheet is the best. Not all the “win-win” deal should reach an agreement. In many negotiations, thus I will often be asked: “why don’t you receive our supply? We can give you a better price!” But I tell them: “I don””t accept this delivery because you are not a liar is fool, I need a long-term partner! I want to ensure that their profits!” (one of the outstanding buyers will not only to care about their profits, but also as a partner The supplier, so as to achieve win-win situation.

“Out of Box”

Once I sit as a representative of the company’s factory in China, a large conference room, at that time I just wear jeans and t-shirts. But on the other side of the five managers have to wear very formal, but only one can speak English.
At the start of the meeting, I was talking to the manager to understand English, he can translate my words to colleagues, and at the same time for discussion. This discussion is very serious, because the price of the new order, payment terms, and quality problems. But every few minutes, they’ll laugh at a time, it makes me feel very uncomfortable, because we discussed the topic is not funny. I am very curious what they discussed in the content, and sincerely hope that your side has a good translation. But I realized that I bring translators, they will certainly be a lot less.
Then I put the phone on the table have recorded the whole meeting. When I back to the hotel, I put the audio files uploaded to the Internet, and find several online translation the translator accordingly. A few hours later, I got a translation of the whole meeting, including their private conversation. I have to know their quotation, strategy, and the most important base. From another point of view, I have already obtained the advantage in the negotiations.

“Time is the best negotiation tool”

In China, there is no one thing is the price of the die. Price negotiation is the best tool. As long as China merchants a perceive yourself if you want to lose customers, is to immediately change the price. You can never let them know what they need, also cannot let them know your time is very urgent.
We’ll lock transactions and products as soon as possible, so that we in negotiations with the Chinese will not be at a disadvantage. For example, in July 2012, the Olympic Games will cause the demand of the large screen TV, we began in January when targeted negotiations. That actually has received very good price, but we keep silent to February. The factory boss know we need the goods, has been confused why don’t we sign the contract. In fact, the factory is the only supplier, but we cheat him said: “we have a better supplier, basically will not respond to you.” Then when they were in February to lower the price by more than 10%!
In march, we continue to tell him that we find a cheaper supplier, ask he can give a lower price. He said the price can””t do that, because of this we entered the cold war. After weeks of silence, we realized that the manufacturer will not traded at this price. At the end of march when we raised the price of the order, and finally reached an agreement. The order price is 30% lower than the first offer in January to!
The crux of the negotiations is not let the other side feel despair, but the use of our time locking trading floor. “Earlier and” approach to ensure that you get a better deal.

“Never say target price”

Usually someone ask me: “how much is your target price? And I will direct said, “0 dollars!” Or “don””t ask me the target price, just give me the most preferential price.
Chinese negotiations technology so much that they will get business information than you imagine. They will use these commercial information to set prices. You have to ensure that your information leakage as less as possible, and let them realize that there are a lot of manufacturers in the bidding for your order. And you want to do is choose according to your order specifications price the best vendor.

looking for back-up suppliers any time

Make sure your suppliers know you are looking for other suppliers. You can’t let them think you are factory, so they become this will make them proud. Our bottom line is, no matter whether the contract expire, as long as each other can’t meet our requirements will immediately suspend the cooperation relationship. At any time, we have a plan B and plan C, and to make suppliers aware of this. Because we are always looking for new partners, suppliers also feel pressure, so they offer us a better price and service. And we will put the corresponding preferential passed on to consumers.
When looking for a supplier, if you want to get the absolute price advantage, you must contact the manufacturer directly. You each involves a link will cost 10% more in price. Now the biggest problem is, no one will admit that he is an intermediary, they claim to manufacturer is open, but still there are ways to check whether the middlemen:

  • 1, check their E-mail. This method is obvious, but it is not work for all companies, because some giant company employees still likes to use Hotmail.com email account.
  • 2, visit manufacturers — through the business card address to find the corresponding factory.
  • 3, check the employees uniforms, pay attention to the brand on the clothes.
  • 4, to production engineer asked if they know to show their products.

With more than a simple method, can distinguish whether middlemen.Sourcinghelper Team purchasing agent is one of the excellent Team, for more information, please visit: www.sourcinghelper.com

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