negotiation

How do you negotiate with your China suppliers?

First of all you need to know your supplier’s status or capability, you might want to ask the following questions:

1, how many employee do you hire,  and ask them to give you details on the numbers of labors, technician, engineers, sales and management people.

2, how big does your factory cover, they will tell you in square meters.

3, what is your monthly production capability, they will probably ask for your order quantity, then you will need to ask what is your deliver lead.

4, what is your complaint rate or defective rate, and what is your warranty policy.

5, what is your MOQ (Minimum Order Quantity)? If I purchase more, what is the discount?

6, How good is your product quality, can I send someone to do inspection before container loading?  If you would like to hire someone to do the inspection, no matter what kind of inspector will conduct the inspection, as long as they know that someone will do inspection, the factory needs to make sure the products pass the standards.

7, what is your payment terms, can I pay you with 100% L/C at sight? They will prefer to do T/T for the fist 3 transaction.

8, what is the percentage of your domestic market sales, what countries are your oversea markets? Do you have customers in our country.

9,  Based on the condition above, what is the cost per unit?

Secondly, you need to make sure that their month capability fits your order quantity, this is very important.

 

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