It is a given that once you place your order you negotiate the price.
No matter if you are below the supplier’s MOQ or not. You are now ready to place the order and you let the supplier know your terms.

Use the price that you were originally quoted and decrease it by 20%. Give this target price to the factory and let him know you would like to order with your (20% reduced) price. In many cases the supplier may not agree to your new target price but he may reduce it another 5%.

In 80% of the cases he will give you a further reduction on his original quoted price, unless your quantity is really very low.

Also mention to him that this will be the first trial order and that if it is successful larger orders will follow.

Once your price is negotiated you are ready to send your PO.
This could be an informal text in an email with all details or a Word/PDF file that you have created. We will supply a blank pro forma Order in this course.

I will update more soon on a few “advanced negotiation skills” on here.


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