Commercial Negotiations
In low cost countries, prices and deals are often negotiable. The first quotation is just a starting point in most cases. However, many Western buyers are using target costing. As long as it is x% cheaper compared to current price, offer will be accepted.
In addition, customers are facing regular price increase requests from suppliers because of the rising costs of raw materials, currency exchange and VAT rebate rate changes, inflation, etc. Many buyers find it is hard to negotiate back with suppliers and have to accept price hikes.
SupplyWeaver will advise you on commercial negotiations with low cost suppliers and help you to understand the cost increase factors mentioned above.
THE ACTIONS INCLUDE
Develop Negotiation Tactics: Advice on what should be negotiated, to what extend can you negotiate and how to get the best possible results.
Cost Analysis: Analyze the quoted price increase elements, reveal the real impact on cost, and establish how to minimize the increases.
Price Mechanism Development: Establish price mechanisms with suppliers' acceptance to help you manage price movements.
