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Dealing With Chinese Suppliers: Negotiation Strategies


For anyone procuring from China, you can tell that Chinese suppliers are not the easiest, especially with price negotiation, MOQ, discounts, and everything that requires negotiation. 

Factors like language barriers, cultural differences, quality assurance, price fluctuations, exchange rates, etc., make the situation even more daunting. 


These have discouraged many people who desire to procure from China. However, it is crucial to understand that negotiation with Chinese suppliers is not impossible and can become easy and profitable with the right communication strategy. 


This article will discuss some strategies that, if adequately utilised, will help in the successful negotiation with Chinese suppliers, getting you the best possible deals.


Negotiation Strategies to Adopt When Dealing with Chinese Suppliers

For every negotiation, the goal should be a win-win outcome both for the buyer and the supplier. With that in mind, certain strategies need to be adopted. Let’s look at these simple but effective strategies.

Research deeply

Before you start negotiating with a supplier, conduct adequate research on the market, the product, the supplier, pricing, similar products and prices, payment method, minimum order quantity, etc. 

Ask questions about product specifications, packaging standards, and quality. Also, find other suppliers that offer the same product and compare products, price, quality, packaging differences, payment methods used by each, delivery time, and ability to deliver within the lead time window. 

Deep research gives you a clear idea of what you want, what you can offer, and the supplier you want to work with. This sets the tone of negotiations. 

Prepare your data for negotiation

Based on the research outcome, prepare and organise your data for negotiation. This helps you with informed negotiations, knowing when you are being cheated or when a deal is good or bad. 

Present the factual information to your supplier transparently and share the relevant data with them. This will make them realise that you are an experienced and knowledgeable customer who expects to be treated fairly. Also, they must understand that losing a valuable customer like you to a competitor is not in their best interest.

Build a good rapport with the supplier

Good rapport builds trust and is helpful in negotiations. Negotiating with Chinese suppliers goes beyond data, numbers, and facts. You need a good relationship that is very much valued not just by Chinese suppliers but by suppliers all over the world. 


Good relationships yield benefits, which include favourable deals from the suppliers. When suppliers like and trust you, they will give you good deals. 

You can build an effective relationship by showing interest in their culture and language, respecting their customs, addressing them with proper titles, complimenting products/services, and being honest.


Negotiate prices based on the quantity of goods

Always request for the quantity price breaks to get a better idea of the price range and the best price from a supplier

Suppliers usually give a general price and only provide a better deal when buying larger quantities. Therefore, it is essential to ask for a quantity price break to know what works for your business and the quantity you can afford to buy at a go.

Use available leverages

Leverage is any advantage or influence you have over a supplier during a negotiation. This can include your knowledge, alliances, connections with other suppliers, market potential, and existing customers, as well as your business's size, name, and status.

Using leverage wisely can help persuade the supplier to offer a better deal or accept your terms. Leverages should be used truthfully, strategically, tactically, and realistically.


Proper documentation

It is important to document every stage of the negotiation process. After each negotiation session, confirm everything in writing with the supplier and obtain their signature where necessary. More importantly, the supplier should summarise the agreement in an email or a document, as this will help confirm that you are all on the same page to avoid any confusion or disputes later in the business. 

Also, a formal contract should be written and signed by all the parties involved in the negotiation process with the supplier before finalising the deal. 


Place a high value on yourself

It's essential to remember that suppliers are interested in selling their goods and value good partnerships. By positioning yourself as a dependable and trustworthy partner, you increase your chances of receiving a favourable deal from them and becoming a long-term client.

 

Well-rounded negotiation

When negotiating with Chinese suppliers, go beyond the price to negotiate other aspects of the deal like quality, quantity, delivery time, payment terms, warranty, and after-sales service. You can optimise negotiations by balancing the benefits and risks of different aspects, creating flexibility, and finding optimal solutions.

Final thoughts

To negotiate effectively with Chinese suppliers and increase your chances of getting a better deal, it is essential to follow the highlighted strategies. Additionally, partnering with an experienced and trustworthy procurement company like SARA PROCUREMENT SERVICES LIMITED can simplify the negotiation process by assisting with supplier negotiations.

Visit our physical office at 3 Fatai Irawo Street, Ajao Estate, Airport Road, Lagos, Nigeria, or any of our warehouse touch point locations worldwide to learn more about us and utilise our services.


Our 247-email correspondence is hello@chinatolagos.com.

We are equally social, and you can find us @SaraProcure on your favourite channels: Twitter, Threads, Facebook, and Instagram. 









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