Decreasing of the prices in China is essential. It is a well known secret, that for last years the prices for China purchase increased year by year and if you purchase department is telling you it is so, than as time to change it is here.
Following things is must, you may have other experience, it is my own personal best practice:
1. get phone you can call for cheap - not cell phone, but IP phone for example (usually a few cents a minute to China)
2. get your Skype with video work
3. have an assistant with you, that speaks Chinese. You may need him/her once they will try to tell you they dont speak or understand
4. prepare the price structure in following years + the products you are buying => make a presentation from it, so once you call you have a slide in front of you wit all necessary info
5. understand the different time zone structure + different national holidays structure
6. be prepared to make a notice from every meeting + send them on the email of both you and your Chinese partner
7. Do not to try the approach of I need 10% decrease, so I tell them 20%. It is not good and they will feel you are in not knowing what you want
8. Be hard on your expectation, but be friendly
9. Always ask them to help you and also never ever tell them it is ok for you to finish the cooperation (usually you know each other for very long + you know the quality, once replaced you may be crying of what you got)
10. Be prepared to be annoying. Sometimes even a 6 phone calls will get you what you want.
11. Try to understand what is happening and what problems they have. It is important to care.
12. Thank you all the time the talk to you
We had been suffering from the price increase in last few years a lot. Every 1% you save in purchase is already making a 2,5% sales. You must get it! Do not push sales, if your purchase is bad. Than no profit is created. And also understand, that paying a 5% to your sales is more expensive, than paying a 10% of what was saved to purchase.
