Do you ever feel like your supplier is putting the “squeeze” on you? Have you ever hired a native to check the prices at different quantity levels prior to sourcing or in my situation, after? I’m working with a supplier now that is quoting me higher price levels than they have on their Alibaba website and I think they are legit prices because they are only .20-.40 lower what I am paying now. I’ve already placed two orders, so it might be too late to hire a sourcing agent. I am considering switching suppliers, but don’t want to burn bridges in case the other supplier doesn’t work out. I am not trying to get cost so low they alter the material, just wanting to be fair and maximize profits. Any body?
Maybe I made the mistake giving them what they want on the first order..and the second for that matter. I was okay with the price because I had priced similar products. It was a low MOQ of 500. I didn’t see any reason to beat them down on price. My reorder was 1000 and they came down .15. I negotiated for awhile and gave it to her. Their website gives a price each for 3 different quantities ranges 500-3000, 3001-5000, 5001+. The price for the first range is exactly what I paid for the first 500 units. The quote I got for 3000 is .20 more than what they have on their website. Oh…and the prices on the website are FOB….she’s quoting me EXW. I was told by the 25 yr veteran that if they made tremendous profit on you once, they would rather loose you business than come down on price.
Yes I do that and I mention they are cheaper, I never go with the price they provide but I know what is a reasonable price, I won’t ask them for 50% off, they know you will negotiate, nobody pays what they ask for. Do this:
1) Ask them to provide a better price for 3000 units
2) You mentioned you need 5000, ask them what would be the price after getting the quote for 3000
yea…I am totally aware of that, but in the case the price is a lower percentage of the overall price that I typically see. Like I said, it’s only a .20-.40 cent difference. Normally in this price range, I see a $1-$2 difference. And they are very honest when you ask them, “Yes, we only have lower price on web so more people will inquire”.
I offered to buy 3000 and the quote was .20 higher than they have on their website. I have not called the agent on the situation. I actually don’t want 3000 now, but 5000 and don’t want to mess it up so I am trying to figure out my approach. A veteran to China business answered a question in a similar post that once they get the “squeeze” on you, it’s hard to get out without terminating the relationship.All I want is them to honor the price on their website…seems fair enough to me.
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