Hot Tips To Negotiate with the Chinese Manufacturer

  1. During your manufacturer search, you will have asked for quotations from a range of factories.Now you can compare prices to get a starting base line price.
  2. Know your raw material prices, labor factors, and tax rebates.
  3. Know your product. Will the factory need to produce a mold or do they have existing stock.
  4. Have notes questions and even a checklist ready.
  5. Meet your Chinese manufacturer and establish a relationship.
    When you begin your negotiation, use real reasons for a price reduction from your knowledge of tax rebates etc learned during research.
    Don’t just demand a price reduction or you won’t give them your business – unless you are Wal-Mart they will think you are rude and won’t take you seriously.
  6. Chinese manufacturers like to deal with seasoned buyers, they don’t like to deal with (or waste time on) new buyers.
    Conversely, if you don’t demonstrate you know what you are doing, manufacturers will automatically take advantage of you and even use bully tactics against inexperienced negotiators.
  7. You should negotiate a price relevant to your order size.
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The larger the order the lower the price. Many will argue you should lie about this but it really comes down to your skill as a negotiator.

While some will negotiate a price for a large quantity then drop the quantity at the last minute and claim it is a trial order unless you can manage this effectively you will most likely end up with problems.

If you think about negotiation seriously consider visiting your manufacturer in China.

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