You’re searching the internet seeking the perfect supplier to bring your perfect product to the market. That’s all very exciting. Factories are abundant, we all know that. But finding the right one that gives you quality products at competitive pricing isn’t an easy feat. It all boils down to mastering China supplier negotiations.
Understanding Chinese business culture
The Chinese business culture is different. It has a strong connection with the ideas of Confucius, a prominent Chinese philosopher. Chinese communications etiquette is heavily influenced by the concept of ‘Guanxi’, which emphasizes building rapport based on trust and mutual respect.
Communication in China tends to be contextual, which is opposite to Western countries where people can be more direct and blunt sometimes. This means you must train yourself to understand the subtleties and underlying meanings of interactions. Saving face is also an important pillar in Chinese culture and Confucianism, so you must avoid confrontations and try not to embarrass the other party.
For language, there’s no escape from learning Chinese or having someone with you who can do the talking. The vast majority of people there don’t speak English fluently, and most of them are usually more familiar with the Mandarin group of dialects.
All in all, the key to Chinese supplier negotiations is to understand that their culture is unique and not similar to others. To communicate effectively with local factories, you must act like a local.
General tips on negotiating with Chinese factories
Many strategies can be applied when negotiating with suppliers. Here are some of the general ones to get you started:
Know your product first
First and foremost, understand your product and its requirements. Before even choosing a Chinese factory, you should have all the details sorted out. This includes specifications, materials needed, and what types of factories are specialized in producing what you need.
Explore all the potential ways in which your product can be manufactured, so you can be prepared if a supplier tries to offer you alternative solutions.
Do your due diligence
Research as much as you can. Develop a clear understanding of Chinese labor costs, available factories, production time, quality control processes, regulations, and other factors related to your product.
Learn Chinese suppliers’ negotiation tactics
Chinese factories have spent years developing their own set of tactics to negotiate with clients like you. But you can turn this to your advantage by learning their moves. Their negotiation strategies are plenty. For instance, factory representatives tend to use flattery and promote the idea of ‘mutual interests’ to lure you into accepting a deal that might not be in your best interest.
Build a relationship with the supplier before demanding better terms
This is also related to the Guanxi principles. Build a meaningful connection with the supplier and make them trust you before starting to push for more benefits or lower prices. This may lead to greater transparency, faster lead times, and better support for you during the manufacturing process.
Discuss all the details clearly
Chinese suppliers tend to stall, avoid saying no, and talk indirectly. But in the end, the details of the deal should clearly be stated, discussed, and agreed upon even before signing the contract. If you and the supplier are not on the same page, this may lead to misunderstandings and more delays, which is clearly not in your favor.
Prepare to compromise
No Chinese factory would accept the first offer terms right away. Even if the terms were easy, the nature of any negotiations is that every party will try to bargain for their favor as much as possible. Therefore, the supplier is expected to push more, and the eComm seller must be willing to agree to some compromises.
It’s hard to decide what aspects of production to compromise on right on the spot. That’s why it’s better to decide that in advance so you can be prepared when negotiations are on.
Skip the negotiations and get the best terms with Lansil Global
With a dedicated purchasing team based in China, Lansil Global helps you skip the hassle of dealing directly with suppliers. Our staff are Chinese natives and can speak English fluently, meaning they can be your point of contact throughout the entire process.
We focus on providing the highest quality with the best possible rate for all eCommerce brands. Whether you have a supplier in mind or want us to research for you, our China Sourcing solutions can get you what you need.
Want to learn more? Reach out to our sales team to get a custom quote or free consultation.
