Price Negotiations

"In many instances our service fee is less than the cost of a trip to China, which require air fare, hotel, local transport, meals, etc...."

Price NegotiatioNs

Price advantage is the driving force behind outsourcing to china and bargaining is a fundamental aspect of the chinese culture. Price negotiation is actually expected in most situations. We will assist you in price negotiations.

Few people are aware of the very low profit margin and the highly competitive business environment that many suppliers in China are dealing with. This reality can often lead a supplier to agree to a price that’s unrealistically low. That said, the supplier also must make a profit and it is not always working in your favour to push for major price reductions because it may lead to that the supplier to “adjust” the quality of your production accordingly. We will oversee every aspect of your project from price negotiation, materials sourcing and production methods to insure that no short cuts are taken as the result of negotiating a price that’s too low.

Procurement of existing China Product

Thanks to the Chinese business infrastructure, the complex manufacturing networks, abundant labour and high level of available skill, China is still the most important low-cost country for sourcing existing products.

Our product procurement strategy involves understanding the local market’s product offerings while appreciating our clients quality and price requirements.

We take every measure to insure the best match between local product options and our clients exacting needs and expectations.

secure best payment terms and value for money

When outsourcing to China it’s a major advantage to have some “boots on the ground” assistance. We will negotiate for the best project lead times and payment terms possible. Typically the terms are structured in such a way as to minimize the risk for both the client and the supplier.

In general, the higher the value of your order is the more leverage you have in terms of negotiating payment terms, and after you had a few shipments from your supplier and you have increased your volumes there is always the opportunity to re-negotiate the payment terms in your favour.