How to negotiate the price

orchid · 11-07-2008, 07:17 PM

I got the price quote from a Chinese supplier and it is surpirsingly very high (I can get items from a U.S. supplier at the same price) and very low minimum order purchase. I can buy a lot more and want the much lower price. They also want 100% payment prior to production.

Is it a common practice to for Chines suppliers to quote a high price in the beginning so buyers have to bargain for the price? Can anyone show me how to negotiate the price when offering buying more quantity?

I am about to ask another supplier for the quote. Their catalog offers a lot of sizes and styles in the product category i am interested. Should I list all the styles I am interested in at once so they can give me a quote ( will it overwhelm them)? Or should I just list several items first and see how they quote and ask for quotes of other styles later on?

Really appreciate the advice

xcat · 13-07-2008, 10:28 AM

Just tell them the truth, you can get it cheaper from someone else. If they want your business they will have to drop the price.

**Anthony** · 13-07-2008, 11:28 AM

Generally the price they offer you first time around will have some room for negotiation. Its very rare (in my experience) that they quote you a price with absolutely no movement at all.

The more value you can present them, the better their second offer will be. They are looking to make money too don't forget, if you can offer them increased quantities or regular purchases, what can they do about the price? Chip away.

hardwareheroes · 13-07-2008, 10:54 PM

I have had quotes from quite a few chinese suppliers which were pretty good I thought but I just wasn't ready to order. I wasn't trying to be smart, I simply said this to them and waited a few weeks - lo and behold, prices dropped to almost 2/3rds of the initial quote.

orchid · 13-07-2008, 11:50 PM

I think you guys are right, I will tell them that the price is too high and that I can get the same item from US at the same price. I remember 3 months ago when we were traveling to China, we could bargain the hotel room rate much lower than the rate they listed, usually at least 50% off.

orchid · 13-07-2008, 11:54 PM

Hardwareheroes,

Did you tell them you were not ready to order or tell them the price is too high? Would you share exactly what you told them?

hardwareheroes · 14-07-2008, 08:21 AM

Quote:

Originally Posted by orchid

Hardwareheroes,

Did you tell them you were not ready to order or tell them the price is too high? Would you share exactly what you told them?

I just told them the truth that I wasn't ready to order

geosamm · 14-07-2008, 08:40 AM

simple rule of thumb...... if your not honest with him how can you expect honesty from him

orchid · 14-07-2008, 06:47 PM

I got the quote from another Chinese supplier and it is very high too, with larger MOQ. Here is the problem. I can import the same items from another country which borders China without any risk. I have a very close friend living over there and he can handle every thing: pay the seller in person and get the items in person, ship it to me. The items are also from China and imported to this 3rd country by road.

My question is how come the seller from the 3rd country could get the items so cheap from China? The price they gave is the same price or even cheaper than what the Chinese supplier quoted, and same quality. Also, they don't really require large MOQ at all. My best friend can pay them in person. No risk involved here.

The reason I contacted with Chinese supplier because I hope they will give me a better price than that in the 3rd country because the items are also imported from China. But it seems like I am wrong unless the Chinese supplier quoted an absurdly high price because I am a US buyer?

I sure will bargain with them and may have to ask for the price lowere at least 2/3 lower to make it a better deal than import from the 3rd country.

My question is: there are still some more items the supplier will quote the price for. Should I wait to see all the quotes?

I also want to see the samples, should I ask them to send me the samples first and bargain the price or should I bargain the price before asking for samples?

Please help and give advice.

greedyboy · 14-07-2008, 06:54 PM

Although price is important, quality is just as important. I can buy identical items with as much as 30% cheaper prices but the quality and support is reflected in the price.

You may save a few hundred or thousand dollars in total but that is not much use if you have a high failure rate or they blow up after a couple of weeks use!

It's not all about the FOB price!