Why Do You Need Frequent Negotiations with Your Chinese Suppliers?

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For many importers, negotiating with Chinese suppliers may be a tricky and troublesome affair. But know that many problems stem from poor communication and result in suppliers’ inability to truly understand your needs. However, if you have good negotiation with Chinese suppliers, it will make your whole import process smoother. In this article I will let you know why you need to negotiate frequently with Chinese suppliers to make you pay more attention to this process.

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Reasons for Frequent Negotiations with Chinese Suppliers

Here are 5 reasons why you should attach importance to negotiating with Chinese suppliers from business, cultural and other perspectives.

Earn Your Supplier’s Respect And Atttention

The first reason is to Earn the attention and respect of suppliers. This is especially important when you are dealing with a new supplier and can make or break a subsequent partnership. The new supplier does not know you and is unable to ensure your sincerity, so if you don’t negotiate further when you receive an offer from them, they will doubt your willingness to cooperate and will not respond to your email in a positive way.

On the contrary, if you choose to participate in the negotiation, you indicate to your supplier that you value the cooperation very much, thus you’re willing to take the time to communicate with them. Let them feel your sincerity through negotiation, then they will respect and pay more attention to you.

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Know Your Supplier Better

Participating in negotiations will help you learn more about your suppliers. For example, in the negotiation, you can find out the power structure of the company. If the person you are negotiating with always has to get permission from the manager or boss, then he may just be a foreign trade salesman. You can also require to talk to his or her supervisor to get a better price.

As you drill down into specific negotiations, you will find out where your suppliers are flexible and where they are not. Maybe they are inelastic in quantity, but they are elastic in price. Maybe their delivery time is more flexible or maybe they have more flexibility in their checks. Frequent negotiations can help you to know more about the supplier and determine whether the supplier meets your requirements.

Be Conducive to Price Negotiation

When you are stuck in a price negotiation with a supplier, it may be beneficial to negotiate more. For example, after many price negotiations with the supplier, you can know the supplier’s bottom line. If your target price is much lower than the supplier’s bottom line, then cooperation may not be possible. But since you left a good impression on the supplier in the early negotiation, they can’t agree with your price but feel that you are a worthy partner, maybe they will recommend different materials or different designs to produce the product you want, but within your budget.

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Build Long-term Good Cooperation

Culturally speaking, China is a country that places great importance on relationships. Some good suppliers would rather give up the order if they don’t feel happy negotiating with you, so the negotiation process is also a process of building a good relationship with Chinese suppliers. Finding a reliable supplier is not an easy task, so having a long-term partner can save you a lot of trouble.

Achieve A Win-win Goal

The best outcome of negotiations is a win-win situation. For example, when you negotiate a better price with a supplier, it doesn’t mean you get a profit from them. Because when you send them a purchase order at a price you can accept, you’re also helping them make more money. For them, more orders mean more money. And for you, lower prices mean more savings. Saving is your extra profits, or you have to sell more to make up for it.

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Negotiation is a complex and strategic process. I hope this article has made you aware of the importance of negotiating with Chinese suppliers. If you want to know more tactics to negotiate with your Chinese supplier, please refer to this article: https://sinoinspection.com/a-guide-on-negotiating-price-with-your-chinese-supplier/.

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