How to Negotiate with the Chinese business man or supplier

People are different and so is your approach to them. The Chinese is quite different and you will have to specially learn how to relate with them in order to get the best deal. There are lots of resources and academic studies out there for you to read in order to understand how the Chinese thought process flow. The Chinese himself do exactly the same thing when they want to do business say with an American. So you should spend a couple of minutes to learn how to approach them.

Watch video below:

Harvard business review has an article titled: The Chinese Negotiation. You can find it here: https://hbr.org/2003/10/the-chinese-negotiation

Part of the article says:

“Chinese negotiators are more concerned with the means than the end, with the process more than the goal. The best compromises are derived only through the ritual back-and-forth of haggling. This process cannot be cut short. And a compromise allows the two sides to hold equally valid positions. While Americans tend to believe that the truth, as they see it, is worth arguing over and even getting angry about, the Chinese believe that the way is hard to find and so rely on haggling to settle differences.”

Before the all-important haggling begins, I assure the Chinese agent of my continuous patronage once she gives me a good deal and a high quality product. I assure them of increased volume of purchase in the near future. This prepares her mind and makes her value you the more as a potential big customer. Once again, remind them that if they ship quality goods and if it sells, I will increase my volume of purchase. This will make the Chinese want to talk to you and establish relationship.

Also show the agent a picture of your store with your business name. If you do not have a physical store, then you will do well by sending a link to your social media page to them. Show them that you are a reseller and not an end user. Everybody loves a returning customer.

Caution: You have to be careful when haggling with a Chinese marketer. Know when to stop. The reason is that the Chinese manufacturer can use inferior or substandard materials to manufacture specially for you at your price.

Generally, make your price research and know the bottom pricing for that item. Price slightly below the bottom pricing and know when to stop.

I will recommend you also read Forbes’ Negotiating in China: 10 rules for success: https://www.forbes.com/sites/jackperkowski/2011/03/28/negotiating-in-china-10-rules-for-success/