Case background:
New customer, the boss has visited the factory. We are a large factory with complete and well-organized production processes, so the customer is very satisfied.
Before they came, they had a quotation for a product. Because it was customized, we needed an engineer to review and quote. There were many links involved, and the quotation would take a few days.
The following are the details of communicating with customers:
Communication details:
When the customer came to the factory, we didn’t have the final price yet. We discussed the use and testing of the product in the conference room. The customer also said that if they cooperate, they will send a set of components that match this product to test whether the product is suitable. Whether qualified can be used;
Our prices came out one day after the customers left and were sent to them. After several days of no response, I asked them this Tuesday, how is the project going?
The customer replied: The price of your factory is 18-20% higher than other foreign trade companies, and they make a commission of 8%, so the total price is 10-12% higher than yours.
Inner OS: I don’t know what factory the other party’s foreign trade company is cooperating with. If it is a small factory, the price will be lower than ours. After all, it will save a lot of management costs. In addition, we still have many certificates, and many international companies in this industry Big names have worked together.
I return to the customer: the price is very important when making an order, but it is not the most important, and the delivery date, quality, service and other added value should also be taken into consideration;
Our price is still negotiable, but it is a pity that you placed an order with another company without giving us a chance to discuss, but we believe that your decision is based on the best consideration of your situation Choose, I hope we can cooperate in the next project.
The guest's reply was a bit ambiguous, one would say "the current supplier is a trading company", and the other would say "the order has not been placed" and "you still have a chance", as follows:
I have not place the order yet.
I just inform you that this item my current supplier is a trader today.
But have not yet given them the PO. So you still have the chance.
Ask a question
Our products are not without technical content. If there is no profit at all and the tax rebate is regarded as profit, it is really a loss. what to do?
Yi Bing's train of thought
First, if your price is about 25% of the gross profit even with the tax rebate, I suggest lowering it a bit and giving customers a step down. For example, first reduce the price on the basis of 5%, but you can’t lower the price at will. You still need to use some of the tricks I emphasized , such as striving for better payment methods in exchange for price concessions.
This is not to say that you are short of money and ask customers for a better payment method, but an excuse as a reason for a reasonable price reduction. Even if the other party does not agree to change the payment method, your concession on the price can be lower. This is a mentality.
Originally:
“
You pay a 30% deposit, I will give you a 5% price reduction at most, and I will find a way for the boss.
”
Guest reply:
“
No, my dear, the rule of our company is the letter of credit, which cannot be changed.
”
Then you reply:
“
Sigh, ok ok, I'm afraid of you. In this case, I can only give you 3% at most, otherwise the company won't be able to pass it.
”
In this way, it gives the other party a psychological hint, which is also a very important step. The idea is that if you want to bargain, I will give you 5%, but if you want to make concessions in the payment method, if you disagree, then I can only lower your face a little bit.
Second, even if the price remains unchanged by 5% in the end, psychologically, this is "a huge concession made by you".
Mentality and negotiation ideas are two in one. You have to lay out behind the scenes to test the real situation of the other party. Find out whether it is just haggling to cheat you, or it is true that there are really good prices quoted by your peers.
Third, take a look with free samples. If the other party is willing to provide a pay-to-collect account to see samples, it means that there may be a problem with the price, but it is definitely not a big problem, that is, his psychological gap is not big.
This also means that the two parties jointly invest cost and time to do one thing, which shows that everyone has a common expectation and goal.
This is like buying a bag. You quote 30,000 yuan on the phone, and my psychological price is 18,000 yuan. You tell me that 29,000 yuan is the bottom line. Ask me to come to your store tomorrow to have a look. Will I come? Generally not, the price gap is too big, and I don't have that much budget. Or even if you come, it may be to enhance the relationship, but also to see your other products.
Fourth, the gap between products is often invisible on the surface. The pictures can be the same, the descriptions can be the same, and the requirements can be the same, but the quotations of different suppliers may be very different, because everyone's understanding is different, and the products they make are also different.
So when the customer sees the sample, your price corresponds to the sample, and the quotation is meaningful.
It's like if you ask me how much a beef bun is, I can say two yuan or ten yuan. The descriptions can all be big bags, all yellow beef, and all high-quality secret sauces, consumers will not be able to tell the difference. The only difference is that only when consumers buy and eat it will they know, wow, this ten yuan one is really delicious, and the difference between two yuan is huge. That's what samples are for.
Fifth, big companies emphasize management, brand, quality, advantages, etc. This is good, and the thinking is right, yes. This is what I have always asked my students to do.
But in reality, I would like to add a few words, customers may not necessarily pay for these premiums.
For example: in the same area of a city, two houses with similar configurations, the same school district, the same community greening, the same quality, the same fine decoration, and the same school district, the result is that an ordinary developer may use 20,000 square meters, Vanke may be 30,000 square meters. Is it about the same? Maybe it's about the same? Then why the price gap is still more than 30%?
Because of the premium of the brand, because of various pricing reasons, because of the expectation of resale in the future, and so on. Therefore, some consumers will buy it, recognize big brands, and believe in the quality and image of big companies. But there must be some consumers who don't buy it, preferring to buy similar quality but cheaper. So your idea is right and your approach is right, but can customers accept the premium?
To be honest, I don't know, everyone has their own standard of measurement.
Sixth, when I first went to work in the United States a few years ago, I went to LA for a business trip. As for the choice of hotel, I naturally preferred Marriott, and then my colleague chose a good boutique hotel near Marriott, and the price was only my room rate. 80%.
His explanation was that for the Marriott logo, I would not pay a 20% premium for the Marriott logo. But in my opinion, staying in a hotel on a business trip and choosing an ordinary hotel may be very good and worth it; or you may be fooled and regret it.
So what I like is a safer choice. The risk level of choosing another hotel is relatively high. Even if Marriott will not surprise me too much, at least it will not be so bad that I want to leave immediately. This is different choices for different people.
Seventh, the last thing I want to say is that you have done everything you should do, but it may not be suitable for all guests. To put it bluntly, even if you really give up all the profits, if you cut the price by more than 20%, will you be able to win this customer? Not necessarily, because the cooperation between customers and you must be the result of comprehensive consideration.
Often times, if you lose an order, it may only be a very small problem. When you place an order, the customer must feel comfortable as a whole.
netizen tips
@陈春春
Analyze the customer's psychology: Satisfied with the factory, the customer said that the order has not yet been placed, and you still have a chance. This is an obvious signal of hesitation, waiting for your feedback. Customers feel that it is expensive, so put aside the meaning of lowering the price. It means that your products and services are not worth the price, so think in three directions:
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It means to lower the price to prove your sincerity;
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Further proof that you are worth the price;
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Increase service and improve quality.
Point 2 can be written from four aspects:
a. From the quotation, we can know that we are very rigorous. We have repeatedly checked every link such as raw materials and specifications to ensure the best quality and the lowest price. So from your inquiry to the meeting, xx will confirm the price. And big goods will be more rigorous than this.
b. Your product is used in conjunction with other parts, so the quality is excellent, which can extend the service life of the entire product and avoid maintenance costs. (If there are any benefits, you can move them here, provided that you have an understanding of the usage scenarios and users of the product, otherwise the quality of the product will be too good, and the terminal will be unnecessary)
c. If this product is matched with other parts, you can tell the customer that you have cooperated with a big-name supplier, and he can use this to explain to his customer that this product is provided by a big-name supplier. With the endorsement of big brands, end customers can easily accept high prices.
d. Since it is to be used in conjunction with other parts, quickly make a sample and try it on for the customer. When the customer gets the real product, he will feel more at ease. There are also many possibilities to place an order. I can't write the third point, because the lines are separated like mountains.
@Andrea
First of all, it is normal for customers to compare prices, and the mentality must be correct:
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Does the foreign trade company have this price in the market? If so, directly admit what kind of product it is. If there is a picture, provide it to the customer and make a comparison chart to catch the customer's pain point;
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Is the profit quoted by yourself reasonable? If the profit is reasonable, and it is a large-scale factory, you must have confidence in your quotation;
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Foreign trade companies have their flaws, suppliers are not fixed, but you are a large-scale factory, and customers are very satisfied with all aspects, such as:
a) Ask the customer if he has visited the supplier of the foreign trade company, and whether the staff and equipment can meet the quality requirements of the customer.
b) You are a factory with your own professional technical team, and this product has technical requirements. Once there is any problem, you can help the customer solve it in time, saving the communication time between the foreign trade company and the factory. Time is money.
- The current price is based on the current configuration, discuss with customers which configuration can be changed, and reduce costs on the premise of meeting market demand.
I have always believed that we are not in a business relationship with our customers, but are doing one thing together. It happens that I have the production capacity and the customer has the sales capacity in the local market. Combining the advantages of the two, we will jointly develop customers and win the market.
@Linxuan聴雨
First of all, the customer replied that he has not placed an order yet, but just told you that a trader gave him a low price, and you still have a chance. It clearly shows that he is still interested in your product, and the trader's price is just a means to lower your offer.
For the next follow-up, my personal suggestions are divided into three directions:
- Show the company's soft and hard strength first (the customer has been to the factory, this is very important, he should be more inclined in his heart, and then through other positive and side strength proofs, further convince him that your product quality is excellent).
In terms of display: a comprehensive description of management, certificates, factory equipment, and major brands of cooperation, you can learn from Teacher Yibing’s Mail Group method.
- Try to combine with the engineer, can you adjust and replace some parts in the product that will not affect the main performance, so as to reduce the cost.
Then write an email to the customer, updating the adjusted price, explaining which internal components or design adjustments have been made, provided that the main performance will not be affected. (It implies that the price given by the customer and the trader may be obtained at the expense of performance and quality)
- Provide him with some value-added services, such as instructions for use, reminders of precautions, and after-sales maintenance services. These are the weaknesses of trading companies.
This proves that what you value is long-term cooperation rather than one ticket or two tickets.