In the world of handicraft exports, negotiation with foreign partners is a critical step. The four main elements of negotiation are price, delivery time, payment method, and guarantee conditions. Among these, price is the most important factor. Quoting is an essential part of the negotiation process, but the question remains: who should quote first? Is it better to quote early or later? Are there other options?
When a new customer sends an inquiry, responding promptly is important—but it’s not enough. The quote must be just right—too high, and you might scare away the customer; too low, and they may doubt your expertise and hesitate to do business with you. Even for existing customers, quoting can be challenging. Prices are tight, and it's hard to find the right balance between profit and competitiveness.
So, how can you quote effectively? Experienced professionals always prepare thoroughly before making a quote. They choose appropriate pricing terms, select the best channels, and consider payment methods, delivery dates, shipping terms, and insurance requirements. This gives them more control during negotiations and allows them to take the lead in offering.
First, make thorough preparations. Understand the customer's real needs and intentions. Some clients prioritize low prices, so starting with a quote close to the minimum can increase your chances of winning the order. Mr. Zeng from a Guangzhou-based company said, “We analyze the customer’s true purchase intent after receiving an inquiry, then decide whether to send a trial offer or a formal one.â€
Second, conduct market research. With today’s highly transparent and fast-changing markets, staying updated on current trends is crucial. Companies need to have strong market knowledge, especially those that operate in the industry long-term. Understanding historical trends and forecasting future developments helps set competitive and realistic prices.
Third, choose the right pricing terms. Pricing terms define the responsibilities and profit-sharing between buyer and seller. For example, FOB (Free On Board) gives you more control over shipping and insurance costs, but it also comes with risks like delays and increased warehousing costs. CIF (Cost, Insurance, and Freight), on the other hand, offers more flexibility and security for the exporter, as the buyer is responsible for paying once the documents are complete.
Many companies now use FOB for initial quotes and then offer CIF options, allowing buyers more choices while still maintaining control over transportation and insurance. This strategy can help build trust and create more value for both parties.
Fourth, use the right quotation channels. In online trading, platforms like Alibaba allow only verified members to send quotes. When you find an interested buyer, you can send your quote via SMS, email, or through tools like Tradelink. These methods ensure quick communication and help maintain engagement with potential customers.
If the buyer is online, you can immediately discuss their needs, verify their identity, and adjust your quote accordingly. During online meetings, you can negotiate with multiple parties, compare prices, and adjust your strategy based on real-time feedback.
Fifth, consider other contract terms. Payment methods, delivery times, and insurance details all play a role in the transaction. By negotiating these aspects, you can create more flexibility in your pricing strategy. For example, if a product is seasonal, offering a fast and reliable delivery date can make your quote more attractive.
Finally, win with confidence. Showcasing your company’s strengths, reputation, and professionalism can make a big difference. As Mr. Zeng noted, “A well-prepared quote demonstrates expertise.†Before quoting new customers, introduce your company’s capabilities and operations. Building trust and credibility is key to securing long-term business relationships.
A strong company image and good reputation are powerful tools in attracting and retaining customers. Always remember: the way you present your quote reflects your professionalism and reliability.
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