How to keep customers in price negotiation

2023-02-10|105 views|Development skills

In the process of foreign trade negotiations, it is inevitable for us to have a "competition" with customers on prices. The fundamental reason is that we cannot meet the price proposed by the customer. And the price we can do is not acceptable to customers.

However, the price quoted by some customers is lower than our expectation, it is still acceptable. At this time, should we agree to the customer's request?
My suggestion is not to say yes so readily. Because if you go shopping, the store says that this is the latest model, and its original price is $200. Now they can offer 5% off, and it's only $190. You looked at it and felt very satisfied, so you tentatively asked if $160 would work? The salesperson replied: "Sir, do you pay by card or cash?" At this time, your first reaction is not excitement, but whether you are overpriced.
Thus, you will think not to buy it, and go to other stores to look at it and compare the prices. If there is no suitable one, then go back and find an excuse to cut a lower price. This is the buyer's mentality.
Some smart sellers will first decline and say: "No, $190 is already the lowest price. Look at the fabric and workmanship, how can you buy it at $160? If you really want it, you can take it at the lowest price of $180."
At this time, the buyer will be happier paying $180 to buy it than that $160. This is buyer psychology.
Another result is that if the buyer insist on a 20% discount, the other party also wants to sell it to you. What can the salesperson do?
He will tell the buyer that he will ask his superior or ask the supervisor to come forward to talk with you, and then finally give you an internal price or even an employee price, which is 20% off. This effect is completely different from directly giving you a 20% discount.
After such a set of negotiations, although the final result is the same, the customer experience is completely different. During this period, it is natural that some trials and games are indispensable. At this time, we are required to analyze the purchasers in advance to understand the customer's procurement needs and trade details.
How do we make a quotation for an unfamiliar customer who is making an inquiry for the first time?
Is it directly to give an quotation?
In the case of maintaining a certain profit, leave more safe profit margin for the other party to bargain?
Or do you directly quote the best price you can do?

I believe that the above quotation methods are not very accurate. The quotation should be within a range as far as possible, avoiding the situation of being too high or too low. Too high will make customers feel that there is no price reduction, and too low will push themselves into a dead end, and even cause customers to doubt the quality.
In fact, there is no absolute measure of this price, because it varies from product to product. Our red line is 60% of FOB. The price will not be too high and there will be room for price reduction....
What to do if customers keep struggling with price?
At this time, we don't have to entangle with customers on the price. We can try to change the way of thinking, such as using samples as an entry point to test the customer's intentions. If the customer agrees to look at the sample and is willing to pay the postage, this is equivalent to giving us a subtext that the price difference is not big. As mentioned earlier, if the price is too high, customers will think that there is no room for price reduction, and there is no need to look at samples. Normal buyers will not waste this time.
Only when the price difference is not large, or there is still room for negotiation, the customer will consider looking at the sample first. Judge whether the price is appropriate through samples, and then proceed to the next round of negotiations.
In the end, it is right to quote reliably, realistically, leave room for an appropriate amount, and report a suitable plan to the client. But the more important thing is to integrate the information resources in your hands, so that every negotiation and follow-up is well-founded, can convey value, and can discuss needs.

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