As a company, you may be negatively affected by higher prices from their supplier if they get greedy when you purchase products or services—it would be best to approach this subject reasonably.
You already know what your company wants out of these negotiations. It would be helpful to learn more about the supplier’s needs and expectations and approach them politely when giving yours. After all, they have the advantage because they're taking less risk than you are! If prices are too high for your business to maintain, research multiple other suppliers, their prices, and how they operate. Find a supplier suited to your needs.
Many Chinese businesses are very flexible about pricing because of the competitive nature of the industry, and a custom approach may allow you to get the best deal possible while still providing a fair profit to your company for all that research and business development.
Negotiating is not always easy especially when done by you and without a China sourcing agent, but if done right can be more beneficial than having no negotiation at all. Approaching suppliers with an honest discussion allows them to understand why or why not it would work out in your favor as well as theirs.
Know Who You Are Negotiating With And Their Practices
When negotiating with Chinese suppliers, it's best to know as much about them as possible. If you have begun negotiations, you may have all of the basic information you require, such as the business name, location, and appropriate contact information. You will, however, need to look at the customs and business etiquette of the Chinese to be sure you are making the best impression.
Understand The Culture And Customs Of Your Potential Supplier
The first step is to understand the culture and customs of your potential supplier. This may seem like something that would be a given, but you might not think about it until after you've already signed onto an agreement with them for supplies - at which point they have all of the leverage because they can take their business elsewhere if need be.
When negotiating, it's important to remember that both sides are working toward making this mutually beneficial, so there will always be some give-and-take involved! It's also good practice to know where in China your supplier is located before going into negotiations. What works well in one region of the country may not work well somewhere else; transportation costs alone can significantly impact negotiation rates and this is why most buyers are using China sourcing agents.
Then, find out what types of products or services they offer and whether any of the choices would work for you. You want your negotiations to be productive, so don't ask questions just because you can! If your supplier does not speak English fluently enough for a conversation at this level (fluent enough to have an in-depth discussion), use Google Translate or another translation service. Translators can come in handy, so each party understands one another clearly without frustration on either side.
Learn the natural business customs of Chinese suppliers. For example, if they have multiple questions during negotiations, learn why they're negotiating so much and making sure it's not because of some language barrier or cultural misunderstanding. For more lessons you can always contact Guangzhou Agent directly here in the chat!