The truth is that the procurement system in China is very different from the rest of the world. This is because the mentality of the people of this country is really unique. Here we offer a brief guide to better understand the system and thus your negotiations can be more profitable.
1. Forget Western negotiation model: Chinese entrepreneurs do not know a long-term business relationship. Therefore, the most important thing to negotiate with them is to forget the promises and future projects. So, focus on getting the best of each order and current payment to optimize your investment.
2. Do not have always the same provider: In China we cannot think that we have found the ideal supplier for us. In fact, this is the main mistake of many importers. For Chinese entrepreneurs, it is easy to sit back and relax. They tend to solve their problems like this: “Don’t worry my friend, next Order I will do my best”. Thus, negotiate constantly and do not assure them more orders than at present. Just so you will get always the best price conditions.
3. Compare, investigate and negotiate: It is very important that, during our negotiations, we have at least 3 offers for the same product or service. Only thus we can obtain always the best purchase conditions. To achieve this, it is very important that you define the product you need, adding clear technical details. So all manufacturers will offer you the same product and you can well compare prices.
4. Face-to-face negotiations: The most important thing to make your investment profitable is to have an expert company that is in the country to defend your prices and fight for the conditions. Face-to-face negotiations are essential to achieve maximum profitability. For this reason, IBMH experts will represent you in China, because they know the market with more than 14 years of experience.
Trust IBMH to reduce up to 50% your purchase prices, saving you the intermediaries and responding to your needs.