Once, a new salesman Cherry negotiated with a Spain customer and he gave a very low price, that a 2-cabinets order can only earn 3000 RMB. She caught in a very awkward situation. Cherry discussed it with her leader for a long time. If they did this order, there was no profit. But if they didn't do it, the customer might place an order with their competitors. After comprehensive consideration, they decided to do it. Why did they do this order?
Firstly, give the salesman confidence.
Cherry is a new salesman. If she can get an order, she will get more. But if she doesn't succeed in finishing an order, she can’t get any experience and improve her working skills. Many salesmen can't get an order for a long time, and when they feel they can get an order, but the company doesn't support it. They will think it's the company's problem and resigns. It is worth to do this order that it can give cherry confidence to get more orders.
Secondly, develop a new market.
This customer is their first client of Spain and they need a breakthrough to develop the new market. Because the demands of product, quality, and certification are different for every market, so they hope they can start with this customer to know the market demands and develop their market. The other reason is that there will be a lot of clients ask if you have cooperated with the local company. If they have done this one, they will be confident to tell their customers they have cooperated previously. This will help them learn the local import-export policy and operations process and let the customers know we are familiar with the local market very much. The first customer of the new market likes a teacher and you need to learn lessons from him.
Thirdly, maintain the supplier This is also one of the reasons.
Getting more order and giving them to the factories and suppliers will let us be the big customer for them and they will pay more attention to producing our products. In addition, the quantity of the order will influence the price you can get. For example, I negotiate with a printing and dyeing factory. In the beginning, the print and dyeing price is ￥12,000/ton that lead to our high cost and we couldn't provide an attractive price. With the quantity increasing, its price cheaper ￥1500 and we can provide a more attractive price and have a good development.
Apart from the above reasons, we may receive the order when he is one of our old customers and wants us to give him a help. He wants to develop a new market, but his customer gives him a low price. We have earned a lot from him and can help him when it doesn't influence our financial security. If the company is a super company, such as Walmart, we can also agree to do this order. It can help us build our brand. If we pass the super company's audit and other test requirements, we can show the result to other companies to give customers confidence. If there isn't any profit and even lose, you'd better deny it.