How to negotiate with Chinese supplier?

How to negotiate with Chinese supplier?

Delicious

I had never half price negotiation as on the road side split the difference 50 from 100 general formula. Different industries have different margins in China, and even within the same industry, some suppliers quote high, and some low. Actually, you are in some concentrated industry and know about roughly hidden cost of labour, material, tooling, administration and profit margin. So, I am sorry to say.

In China, the rules of negotiation are totally different. My tips and trick for negotiation is choosing the targeted suppliers and asking for quotation base on same condition and material specification. After How to evaluate with China for import step, the suppliers will be left to 2 – 3 factories, A – B and C. The price pattern will be launched as A = 105, B = 90, C = 115. Approaching to A supplier and telling them are the best and we preferred the services, sales and it seems look professional style. Give them a bit souvenir or gift for mankind if possible. And then, you said we don’t contact only you but B supplier quoted you the quotation lower 15% same condition and material specification. They will explain some reason and please be note this must be fact not fake information. They have some entrepreneur sense and know about costing in their mind.

China has a long fighting and negotiation history, Manchuria and Mongolia had conquered China but still using Chinese language as they were in the past 4000 years. Meanwhile, you are going to go to the Chinese trading room without negotiate them is impossible. 

Meanwhile, if you’re not going to homework or vowed of 20% lower than the others. Normally, they have a good sense of going price in China and competitive circumstance. If their senses you don't really know the going price for a product in China, you will find it hard to negotiate effectively also with your reputation will be lower than initial stage.

With my experience, A will be re-quoted you the price same as B or a little bit lower than B finally. This is a good research and result form hard working.