One question nearly every importer trying to figure out how to negotiate with a manufacturer in India for a better deal will ask at some point is, “Is this the best price I can get?”
During the last decade, globalization has opened the flood gates of foreign trading and the backwash has run into the crevices of even the smallest companies. Previously, only large organizations could deal effectively with Manufacturers in India far away. But now, even the most modest of traders can source supply from foreign manufacturers.
Like most importers who really don’t know how to negotiate with the manufacturer in India for a better deal, you’ve probably questioned whether the price quoted by your Indian product supplier or manufacturer is “fair” and “reasonable”.
You might be wondering if you could get a product at a cheaper fee from another supplier, or perhaps you might be considering quality in respect to the price.
Terrible price negotiation with the manufacturer in India can result in unanswered calls and poor quality issues.
If you ask me, what seems to be a successful price negotiation with the manufacturer in India for a better deal, I will say it’s about finding the right balance, and paying the right price for the right quality, while allowing the supplier to earn enough money to stay in business and pay its owners and employees.
That’s not asking for too much.
Knowing how to price like a pro is a challenge that even the most experienced importers face. In India, every business transaction is negotiated. Merchandise, taxi fares, restaurant bills, and dowry – the list is endless. Fortunately, getting the best price from suppliers is not as difficult as it sounds. There are ways to negotiate with the manufacturer in India for a better deal effectively without opting for lower quality products or uttering words that sound discouraging or makes you look unserious to the supplier.
Tips To Negotiate With Manufacturer in India for a Better Deal
Below, I will highlight 5 ways to negotiate with the Manufacturer in India for a better deal.
- Get More Information About India Culture Backgrounds
The development of a society and its culture of negotiation is defined among others by geographical aspects, the history of political institutions, economic development, and social structure.
Before starting a negotiation with the manufacturer in India for a better deal you need to be grounded with India culture, business and pricing model. It is very important that you respect the boundaries and cultural nuances of India. It may be difficult to achieve, but many countries and regions surely have cultural differences and you need to understand what they are and how to treat them appropriately. It is a sign of respect that will help you get a good deal. Indian Suppliers and manufactures will be more willing to listen to what you have to say and are more likely to reach an agreement that benefits both of you if you are open to their ways.
- Be Clear About Your Product Quality Requirements and Stick to it
A product can be made using different materials. You must have “fixed” product requirements. In order to bring the negotiation to fruition and obtain advantageous circumstances for you, it is vital that you have clear your objectives and budget.
During the negotiation, if the manufacturer in India is a good commercial, he or she will try by all means to sell his or her product to you. Perhaps the conditions of the product are very good, but you have to make sure it meets your quality requirement and if it also falls within your budget.
If you are not grounded with the specifications and customization options for the product you intend buying, you will not be able to enter into a successful price negotiations.t.
- Carry out Extensive Research about the Product and Different Manufacturer Producing That Same Product
While trying to negotiate with the manufacturer in India for a better deal, one of the things you need to do that will help in getting the best deal is research. Your first task will be to make a list of possible suppliers that may be of interest to you. Survey the market, seek opinions on each of them, analyze their website and make your selection. You can use the most trusted e-commerce websites like IndiaMART, TradeIndia, Go4worldbusiness, Jimtrade, TradeFord, Amazon India, Exporters India, and Web deal India for market reviews, and to have a clear understanding about a particular product you intend contacting the suppliers for. This will help you to eliminate the chances of miscommunication with India product suppliers or manufacturers for a better deal. You can also download a reliable manufacturer in India database from here.
- Get Quotes From Multiple Suppliers
If you have ever shop on multiple e-commerce websites, you will realize it’s not wise to accept and place an order for the first item that shows up on a particular store, especially if the item is costly. You have to check and compare prices on different store for the same item. You also need to check the item specification to determine the quality. Only then can you decide the store to buy from.
The same logic applies when it comes to negotiating with India product suppliers or manufacturers for a better deal.
It is very important to get a quote from multiple suppliers before placing an order. With that, the overall market rate for the product will be clear to you. If you consider quote received from a single supplier without comparing it with the other suppliers you contacted, you might regret your actions later when you finally realize there were better options available.
- Take Much time Before Reaching an Agreement
While negotiating with the manufacturer in India for a better deal, never make a hasty decision. Think carefully about the conditions before reaching an agreement. If something doesn’t convince you, keep looking. Negotiating with suppliers can be a long process. Compare what various providers offer you and make a decision calmly.
After reaching an agreement, it is important to file all the important data that arise from a negotiation. Forgetting some can completely spoil it in the future.
In this way, your negotiation scheme can be one of the best you have ever considered for any situation.