The Chinese aren’t known for being the toughest negotiators in the world for nothing. Their ruthless attitude to newcomers is legendary.
Listen. When you talk prices with most people there’s usually a bit of room to move. But not with the Chinese. They name their price and you can take it or leave it.
Here’s the good news. I’ve worked out how to get these ‘tough as nails’ negotiators and …
You see, business in China is built on relationships. Far more than in Australia where business is done more on how strong a deal is than anything else.
So if you don’t have a great relationship with your supplier then frankly you’re going to get a pretty ordinary price.
And if you think that’s harsh, stupid or unfair then get over it. Every culture is different and that’s how it works in China.
In fact, when you think about it, doesn’t this open up a massive opportunity for you?
Yep, it sure does. Because when you build a great relationship with a supplier you’ll get the best prices and the best service because …
I’m not kidding. I’ve been invited to dinner with many of my Chinese business partners’ families. That’s right, not out to tea but to their home eating with their wives and children. And it’s not that hard to build that kind of relationship.
It’s about mutual respect and friendship. The more you show them the more they show you. And as you become more like family to them they’ll give you better and better deals.
Let me tell you a funny story about this…
I once grabbed a toy kangaroo from the airport to take to one of my Chinese suppliers. I wanted to give it to him for his son.
Anyway I turned up at his office and handed him the gift.
And he burst out laughing!
I couldn’t see what was so funny, until he told me his brother-in-law owns the factory next door which made this very toy!
So while it was a funny moment, albeit a bit embarrassing for me it certainly created some great rapport between us. And before I knew it I was being offered much better prices than I’d expected and got several brand new contacts at the same time.
So keep this in mind when you talk to the Chinese. Show respect and courtesy and they will show it to you too. Show them friendship and you will create a friend for life.