Price negotiation skills in foreign trade

China Glass Network: Sun Zibing Fayun – "Know Yourself and Know Your Opponent, Never Fight" Price negotiation is the result of a mutual understanding of both parties’ strengths. As a negotiator, it's essential to gather as much information as possible about your opponent. Why can an elderly woman who frequently shops for groceries often get better prices on vegetables than someone without such experience? Because she has a deeper understanding of the market. That’s why the saying goes, “The expert knows if there is any shot.” In negotiations, this kind of comprehensive market knowledge allows you to make more informed decisions and gain a stronger position.

First, negotiators must have a solid grasp of domestic pricing trends, international standards, and the strategies of competing companies. While it may not be easy to fully understand all these factors, taking the initiative to research and prepare relevant data will give you a clearer picture of the market. Knowing where you stand is crucial before entering any discussion.

Second, being well-versed in your company’s product structure, cost breakdown, and production cycle is equally important. Use your deep knowledge of your own products to guide customers toward greater appreciation and satisfaction. You should know your factory’s cost limits, production capacity, and financial health inside out. That’s why sales directors usually handle factory negotiations, while foreign trade companies often deal with senior sales managers or department heads. The goal is to make timely decisions at critical moments to secure a contract.

Although price discussions can be challenging, they are not impossible to navigate. Many success stories come from hard work and persistence. When you understand that a product is saturated in the local market, you also understand the level of competition. If your product has unique technical features and a clear market position, you’ll know why you can command higher profits.

Editor’s Note: Experts Share Effective Negotiation Skills – 14 Essential Tips for Business Negotiations! We won’t go into detailed negotiation tactics here, but we’d like to share our past experiences for your reference and learning.

  1. First, list detailed information about the customer’s company—more details are always better.
  2. List major domestic competitors and their key decision-makers.
  3. Understand what the other party is focusing on—why do they want this product? Is it for personal use or resale? Tailor your response accordingly.
  4. Be thoroughly familiar with your own products and their technical specifications. Many businesses fail to clearly explain the technical indicators or national standards of their products.
  5. If the price seems high, shift the conversation to quality. Invite them to visit your company. A strong corporate culture can also support a premium price.
  6. Avoid comparing your prices directly with others. Keep the topic open or simply state that there’s no direct comparison.
  7. If you must reject a price comparison, ensure you’re fully knowledgeable about the reference product.
  8. Talking about quality is generally easier to accept than discussing price. Service is another good alternative. Quality is the foundation of any negotiation.
  9. Discuss order size with the responsible manager before finalizing anything.
  10. If the company’s decision-maker disagrees with the price or terms, don’t show frustration to the customer.
  11. Any agreement not written down doesn’t count. Even though trust matters, writing it down ensures clarity and fairness for both sides.
  12. High prices might not lead to a deal. Always aim to push the price as high as possible.
  13. Once the contract is signed, the price is considered fair. No need to question it afterward.
  14. Negotiation fails if no contract is signed. Be persistent and firm when negotiating. For example, say, “This is our price, and we won’t change it.”
  15. You can mention being on a business trip to ease the mood and buy yourself time to think of countermeasures.
  16. Even if communication gives you some useful information, it’s still valuable.
  17. For large contracts, involve local government departments to add credibility and pressure the other side to fulfill the agreement.
  18. Small gifts can make a big difference. Even a simple dinner with a small token can build rapport.
  19. Don’t be overly polite or respectful—this can sometimes backfire.
  20. Follow through on your commitments. Even if you lose money, honesty is always the best policy.

These tips are based on real-world experience and can help improve your negotiation skills in business. Remember, preparation, confidence, and clear communication are the keys to successful negotiations.

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