由 caicai8478 - Market Research: Gain bargaining leverage
Compare prices from 3-5 suppliers: Understand industry average prices (e.g., search for the same product and record quotes from different suppliers).
Analyze cost structure: Estimate the contribution of raw materials, labor, and shipping costs (for example, fabric costs for clothing typically account for 30-50%).
Check historical prices: Use the 1688 price trend tool to check for seasonal price increases.
- Identify your strengths
Showcase your purchasing potential: “We consistently purchase 2,000 pieces per month, with the potential to increase to 5,000 in the future.”
Emphasize long-term partnership: “If this cooperation goes well, we will offer you more product categories in the future.”
Highlight payment advantages: “We can accept TT (payment by deposit, up to 30% in advance), which is faster than letters of credit.”
- Prepare a negotiation script template
text
“We’ve compared similar products on the market. Your quote is 15% higher than Supplier A’s.
Considering our initial order is 500 pieces, with subsequent monthly orders of 300+,
could you recalculate a more competitive price?”
II. Core Negotiation Strategies (with practical scripts)
- Price Negotiation Skills
✅ Strategy 1: Tiered Quotation
Sample Talk:
“If the first order is 500 pieces, can the unit price be ¥18?
If it increases to 1,000 pieces next month, can it be reduced to ¥16?
When the annual purchase exceeds 10,000 pieces, can the price be adjusted to ¥15?”
✅ Strategy 2: Cost Analysis
Sample Talk:
“Based on the current market price of aluminum at ¥23/kg, your product uses 1.2kg of material.
The material cost should be ¥27.6, plus a processing fee of ¥8, for a total cost of approximately ¥35.6. Is there room for negotiation with your price of ¥42?”
✅ Strategy 3: Competitor Price Undercut
Sample Talk:
“Factory B’s price is ¥25/piece, with an MOQ of 100 pieces.
If you can match this price, we can place the order today.”
- Negotiating Additional Conditions
Possible Negotiation Points
Sample Talk:
Payment Method: Extending the payment period or reducing the deposit percentage “How about a 30% deposit for the first order and the balance payable upon seeing a copy of the bill of lading?”
Logistics: Strive for the supplier to cover domestic shipping costs. “If the unit price remains the same, can you provide free shipping to the Shenzhen warehouse?”
Quality Assurance: Request a free quality inspection report. “Can this batch of goods come with an SGS inspection report?”
After-sales Service: Extended Warranty. “Can we extend the one-year warranty to 18 months?”
III. Supplier Types and Strategies
- Factory Supplier
Advantages: Lower prices, customizability
Negotiation Focus:
✓ Emphasize the potential for long-term, large orders
✓ Accept off-season orders (to obtain discounts)
✓ Request a production line tour (to build trust)
- Trading Company
Advantages: Comprehensive product range, excellent service
Negotiation Focus:
✓ Request disclosure of actual factory information
✓ Compare factory-direct prices
✓ Request value-added services (such as free labeling)
- Gold Supplier
Advantages: Good reputation, on-time delivery
Negotiation Focus:
✓ Utilize the platform’s credit guarantee clause
✓ Request participation in platform promotions
Seek financial services like “Cheng e Credit”
IV. Negotiation Taboos
❌ Behaviors to Avoid
Haggling 30% right out of the gate → Build trust first
Focusing solely on price and ignoring quality → You can say, “We need a good balance between price and performance”
Disclosing urgent orders → You’ll be seen as having weak bargaining power
✅ The Right Approach
Place a small trial order first: “First order 200 pieces to test the market. If the results are positive, place a return order immediately.”
Give the supplier a profit margin: “We understand you need a reasonable profit, and our goal is to find a win-win solution.”
Maintain a professional attitude: Use professional language such as “Our team has evaluated and believes…”
V. Review Key Contract Terms
Six Essential Items
Price Adjustment Mechanism (e.g., “Renegotiate if copper price fluctuates by more than 5%)
Inspection Standards (specify the AQL sampling plan)
Liquidated Damages (a penalty of 0.3% of the contract value per day of delayed delivery)
Intellectual Property Ownership (especially for OEM orders)
Confidentiality Agreement (prevent the leakage of design drawings)
Force Majeure Clause (for special circumstances such as epidemics and war)
VI. Maintaining the Post-Negotiation Relationship
- Regular Return Order Strategy
Maintain a regular purchase frequency, even for small quantities (e.g., place an order on the 15th of each month)
Give small gifts during festivals (Chinese suppliers value Spring Festival and Mid-Autumn Festival greetings)
- Information Sharing
Share end-market feedback: “European customers have expressed a need for multilingual packaging instructions.”
Advance notice of purchasing plans: “We anticipate a 50% increase in demand during the Q4 peak season.”
- Establish a supplier base
Cultivate 2-3 similar suppliers to maintain healthy competition
Annual price renegotiation: “We plan to increase our purchase volume this year. Can you update your quote?”
VII. Practical Case Studies
Successful negotiation process for a 20% price reduction
Initial quote: ¥35/unit, MOQ 500 units
First round: Present a competitor’s quote of ¥30 → Reduce to ¥32
Second round: Commit to an annual purchase of 10,000 units → Reduce to ¥29
Third round: Accept more relaxed payment terms → Final price of ¥28 (including shipping)
Summary: Golden Rules of Negotiation
Be Thoroughly Prepared: Compare prices + analyze costs + prepare your sales pitch
Flexible Combination: Negotiate price, payment terms, and services in a package
Focus on the long term: Build trust with small orders, secure discounts with large orders
Stay within the boundaries: Returns are mandatory for substandard quality
How to negotiate with Alibaba suppliers for lower prices and better service?
I. Pre-negotiation Preparation
- Market Research: Gain bargaining leverage
Compare prices from 3-5 suppliers: Understand industry average prices (e.g., search for the same product and record quotes from different suppliers).
Analyze cost structure: Estimate the contribution of raw materials, labor, and shipping costs (for example, fabric costs for clothing typically account for 30-50%).
Check historical prices: Use the 1688 price trend tool to check for seasonal price increases.
- Identify your strengths
Showcase your purchasing potential: “We consistently purchase 2,000 pieces per month, with the potential to increase to 5,000 in the future.”
Emphasize long-term partnership: “If this cooperation goes well, we will offer you more product categories in the future.”
Highlight payment advantages: “We can accept TT (payment by deposit, up to 30% in advance), which is faster than letters of credit.”
- Prepare a negotiation script template
text
“We’ve compared similar products on the market. Your quote is 15% higher than Supplier A’s.
Considering our initial order is 500 pieces, with subsequent monthly orders of 300+,
could you recalculate a more competitive price?”
II. Core Negotiation Strategies (with practical scripts)
- Price Negotiation Skills
✅ Strategy 1: Tiered Quotation
Sample Talk:
“If the first order is 500 pieces, can the unit price be ¥18?
If it increases to 1,000 pieces next month, can it be reduced to ¥16?
When the annual purchase exceeds 10,000 pieces, can the price be adjusted to ¥15?”
✅ Strategy 2: Cost Analysis
Sample Talk:
“Based on the current market price of aluminum at ¥23/kg, your product uses 1.2kg of material.
The material cost should be ¥27.6, plus a processing fee of ¥8, for a total cost of approximately ¥35.6. Is there room for negotiation with your price of ¥42?”
✅ Strategy 3: Competitor Price Undercut
Sample Talk:
“Factory B’s price is ¥25/piece, with an MOQ of 100 pieces.
If you can match this price, we can place the order today.”
- Negotiating Additional Conditions
Possible Negotiation Points
Sample Talk:
Payment Method: Extending the payment period or reducing the deposit percentage “How about a 30% deposit for the first order and the balance payable upon seeing a copy of the bill of lading?”
Logistics: Strive for the supplier to cover domestic shipping costs. “If the unit price remains the same, can you provide free shipping to the Shenzhen warehouse?”
Quality Assurance: Request a free quality inspection report. “Can this batch of goods come with an SGS inspection report?”
After-sales Service: Extended Warranty. “Can we extend the one-year warranty to 18 months?”
III. Supplier Types and Strategies
- Factory Supplier
Advantages: Lower prices, customizability
Negotiation Focus:
✓ Emphasize the potential for long-term, large orders
✓ Accept off-season orders (to obtain discounts)
✓ Request a production line tour (to build trust)
- Trading Company
Advantages: Comprehensive product range, excellent service
Negotiation Focus:
✓ Request disclosure of actual factory information
✓ Compare factory-direct prices
✓ Request value-added services (such as free labeling)
- Gold Supplier
Advantages: Good reputation, on-time delivery
Negotiation Focus:
✓ Utilize the platform’s credit guarantee clause
✓ Request participation in platform promotions
Seek financial services like “Cheng e Credit”
IV. Negotiation Taboos
❌ Behaviors to Avoid
Haggling 30% right out of the gate → Build trust first
Focusing solely on price and ignoring quality → You can say, “We need a good balance between price and performance”
Disclosing urgent orders → You’ll be seen as having weak bargaining power
✅ The Right Approach
Place a small trial order first: “First order 200 pieces to test the market. If the results are positive, place a return order immediately.”
Give the supplier a profit margin: “We understand you need a reasonable profit, and our goal is to find a win-win solution.”
Maintain a professional attitude: Use professional language such as “Our team has evaluated and believes…”
V. Review Key Contract Terms
Six Essential Items
Price Adjustment Mechanism (e.g., “Renegotiate if copper price fluctuates by more than 5%)
Inspection Standards (specify the AQL sampling plan)
Liquidated Damages (a penalty of 0.3% of the contract value per day of delayed delivery)
Intellectual Property Ownership (especially for OEM orders)
Confidentiality Agreement (prevent the leakage of design drawings)
Force Majeure Clause (for special circumstances such as epidemics and war)
VI. Maintaining the Post-Negotiation Relationship
- Regular Return Order Strategy
Maintain a regular purchase frequency, even for small quantities (e.g., place an order on the 15th of each month)
Give small gifts during festivals (Chinese suppliers value Spring Festival and Mid-Autumn Festival greetings)
- Information Sharing
Share end-market feedback: “European customers have expressed a need for multilingual packaging instructions.”
Advance notice of purchasing plans: “We anticipate a 50% increase in demand during the Q4 peak season.”
- Establish a supplier base
Cultivate 2-3 similar suppliers to maintain healthy competition
Annual price renegotiation: “We plan to increase our purchase volume this year. Can you update your quote?”
VII. Practical Case Studies
Successful negotiation process for a 20% price reduction
Initial quote: ¥35/unit, MOQ 500 units
First round: Present a competitor’s quote of ¥30 → Reduce to ¥32
Second round: Commit to an annual purchase of 10,000 units → Reduce to ¥29
Third round: Accept more relaxed payment terms → Final price of ¥28 (including shipping)
Summary: Golden Rules of Negotiation
Be Thoroughly Prepared: Compare prices + analyze costs + prepare your sales pitch
Flexible Combination: Negotiate price, payment terms, and services in a package
Focus on the long term: Build trust with small orders, secure discounts with large orders
Stay within the boundaries: Returns are mandatory for substandard quality