Negotiate Better Prices/Terms From Your Factory
With global market competitiveness at its peak, prices and profit margins are continually being driven down. For your business to thrive, it is essential that you are negotiating the lowest price from your supplier. Easy Imex’s sourcing specialists will ensure that you are getting the best pricing available without sacrificing quality.
How To Ensure You Get The Best Prices
Negotiate with the right person: the first rule of negotiating in China is to only negotiate with people who have the authority to make decisions. This is usually the factory boss or lead engineer. Our bilingual staff will ensure that you are negotiating with the right person in the factory to offer the best unit price and payment terms.
Understand the factory's production margins and capabilities: effective negotiation requires knowledge of the factory’s production cost. Our team has access to historical pricing, market indexes for raw materials in China, and data on labour and rent costs for each region. We can quickly calculate the factory’s production margins which allow us to negotiate to their lowest acceptable price point.
Don't neglect payment terms and lead times: depending on the factory, your order volumes, and the product, it's often possible to negotiate more favourable payment terms for your business. For instance, 20% deposit, 50% payment after production and after passed QC inspection, 30% after delivery in buyer’s country.