When doing foreign trade, we need to break away from the concept of "lowering prices to make orders"

Price negotiation is a timeless topic in the world of foreign trade. Especially for newcomers, mastering when to lower a price and when to stick to it is a crucial lesson in their growth journey.
 
So, when a client asks for a price reduction, how should we assess the situation and respond?



Common Motivations Behind Clients’ Price Reduction Requests
 
Generally, clients' requests for lower prices stem from one of the following three psychological drivers:
 
1. Habitual Bargaining: They habitually try to negotiate down the initial quote, no matter what it is.
2. Price-Sensitive Buyers: They have a good grasp of the market and believe your price is too high.
3. Limited Budget: They have a fixed budget, and your offer exceeds it.
 
Faced with these situations, does it mean we must always lower the price? Not necessarily. If a client has no genuine purchasing intent, no amount of discount will persuade them. The key is to first assess whether the client has a real need and is a potential buyer.
 
Two Assessments You Must Make Before Offering a Discount
 
1. Market Price Awareness: Understand the current price range for similar products in the market so you're well-informed.
2. Product Value Alignment: Evaluate whether your product offers value for the quoted price—does the quality justify it?
 
Only when both points are confirmed and the client shows real purchasing intent should a discount be considered. But remember: discounts can be offered, but not too easily.
 
Why You Shouldn’t Lower Prices Too Quickly
 
Agreeing to a price cut too readily may lead the client to think:
 
You have a large profit margin, implying your initial quote was inflated.
There’s still room for further reductions, prompting continued pressure.
You’re not the decision-maker, and someone else controls pricing.
 
Instead, make it appear as though any price adjustment required real effort. Say things like, “I need to get approval from my boss,” or “I’ll have to recalculate with our finance team.” This maintains your professionalism while creating the perception of negotiation space and process.
 
Suggested Discount Strategies
 
1. Avoid Large One-Time Discounts: A big initial price cut can severely damage your ability to negotiate later.
2. Use Tiered Discounts: Reduce the price gradually, with each reduction being smaller than the last. This creates a sense that the “bottom” has been reached, increasing urgency to close the deal.
 
I once dealt with a supplier who immediately cut 10% off the price when I said, “Your price is too high.” When I replied, “Still too high,” he instantly dropped another 10%. This made me question whether his original price was sincere—and how many more 10% cuts he could offer. Clearly, lowering the price too quickly can backfire and make clients hesitant.
 
Beyond Price: Focus on the Client
 
While price is important, you should also pay attention to the client’s position, priorities, preferences, and personality. Many clients are willing to accept a slightly higher price if you can offer:
 
 Better profit margins
 Higher product quality
 More reliable after-sales service
 Faster delivery times
 
Common Negotiation Phrases
 
1. Show Empathy for the Client's Concerns
I understand your concern about the price. Let's discuss it further.
 
2. Emphasize Product Value
Our product offers excellent quality and after-sales service, which justifies the price.
 
3. Offer Feasible Alternatives
While we can't offer a direct discount, we could consider a bulk purchase discount or longer payment terms.
 
4. Seek a Middle Ground
Perhaps we can find a middle ground that satisfies both our needs?
 
5. Invite Further Communication
Let's talk more about what you're looking for and see if there's a way we can meet your expectations.
 
6. Reinforce Company Policy and Market Positioning
I appreciate your negotiation, but our pricing is based on our costs and current market positioning.
 
7. Highlight Added Value and Service
With our product, you'll not only get a great value but also dedicated customer support and reliability.
 
Price negotiation is not just about giving or withholding discounts—it's about conveying value and building trust. Don’t rush to offer a lower price. Let the client know you understand their needs and are doing your best to support them. Show them you're not merely selling a product—you're offering a solution.
 
This not only increases your chances of closing the deal, but also lays a stronger foundation for long-term cooperation.