If the price of your competitor is cheaper than yours, how to maintain the customer

Release time: 2018-10-19 14:52:51

Competition is normal in business. But when you cooperate well with your customer, a competitor suddenly appears and give different kinds of reasons and a cheaper price to snatch orders, what will you do?

If the price of your competitor is cheaper than yours, how to maintain the customer

The salesman A had an Italian customer and its purchasing office located in Guangzhou. Generally, the Italian office placed orders and the Guangzhou office would take responsibility for the following, such as samples, packaging, delivering and testing the goods. Ten days ago, the Italian company gave them a return order and both of them signed the PI.

However, the salesman A didn't receive the deposit, but he plans to produce the product as usual. Yesterday, the Guangzhou office sent him an email and stated they would increase the order quantity. But after that they told salesman A they would cancel the order. The sales A tried to call her back to ask the reasons. Finally, he received the real reason was that the suppliers which do LCL 40-foot high cabinet locate at Ningbo, only his company located at Shenzhen and she asked sales A if his company could do FOB as Ningbo’s price. The Guangzhou purchaser found the alternative suppliers in Ningbo and its price was $2.3. His price was $2.34.

The salesman A replied they had signed the PI with Italian office and they had planned to do this product. For supporting them, he applied it to his manager to check if it could be done. He talked for about 1 hour with his manager about the price and they agree to do at this price even though it would reduce the profit. However, when he replied to the email, he received blame for talking about this price on the email. In addition, she told A his quotation is unattractive and he should quote $2.2.

If you are the salesman A, what will you do? There are 3 ways for reference.

First, don't send the email by leap. Still, send email to her, thus you shouldn't be cheated. Then you can response her on social media to tell her it’s monitored or it's a rule that you must communicate with clients with email. Or you can tell her this email is sent by your boss and not you. Thus you can still have the chance to communicate with her.

Second, their email also has made a copy for the Italian office, If you can make the goods as the price $2.29, you can agree with it in the email. Thus if the procurement asks the Ningbo supplier to give a cheaper price again, and let you reduce the price anymore, the Italian office will find the problem. Maybe they want to change to the Ningbo supplier to produce it so that they can save the cost. But It is more likely that they want to use this excuse to seek personal gain.

Last, you can response a price to show you are professional first. Then you can show your advantage, emphasize that your quality is better than Ningbo, you are professional on these products, and you get a lot of European clients’ trust. When She blame you, you can show your surprise and tell her it is sent by your boss, not you, you don't have the right to give a cheaper price. Therefore, you will have more chance to communicate with her and also show your point.

Reducing price all the time can't be accepted, we should analyze the situation wisely and find ways to break the deadlock.