What Are The Negotiations Like When Dealing With Chinese Factories?
Posted by China Sourcing CommentatorAug 12
I am looking to import goods around the world from China sources. What are the negotiations like when dealing with the factories? What do they expect?
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take a brillo pad.. (extra course) scrub your face for an hour.. then apply generous amounts of rubbing alcohol whil keeping your eyes open.. Thats usually the fourth day of negotiations.. Days 1-3 you are too drunk and stuffed with Chinese food to do anything..
Seriously though.. The best way to win is to buy a book, harvard business review publishes a really good one, and there is one called “When Yes Means No” though I don’t know who the author is anymore..
You need to take these people out of their element.. Once you are there and enjoyed there hospitality.. Dont make any committment.. Bide your time.. Everything in China is about relationships.. and relationships take time. Tok me three years before I had enough moxy and relationship power to accomplish my goals in China..
Understand this very simple concept: THERE ARE NO EXPERTS ON OR ABOUT CHINA AND HOW TO DO BUSINESS THERE.. Repeat it to yourself.. Apply it to what you are reading at this very moment.. What works in one province does not work in another..
Become a student of Chinese culture.. Learn Sun Tse Art of War, and understand the underlying currents of that book.. It is the foundation of all Chinese business..
Expect to lose alot of money before you make money. .
Ideally, once you have these relationship.. to win the negotiation.. Invite them outside of their hometown.. You will have to host them.. But if you get away from their local relations to a nutral area, you will have better luck with your team..
Be wary of the tag team approach.. The first team entertains you.. Get you shitfaced.. and stuffed.. Then when you think your ready to rest your gut on those wonderfuly hard matresses, the second team encroaches and begins the real negotiation.. Hahaha!
Learn some Chinese idioms.. And appear clever.. Listen more than you speak.. Dont go there being an american.. And whenever possible, let a Chinese person you trust deal with other Chinese during the negotiation.
A small gift is customary, it shows you know something about Chinese culture. It doesnt have to be expensive, I usually suggest something from the local area where you reside, something special from your town or area not easily found someplace else.. Once relationships are established and you go to China, gifts for the important players are mandatory.. Wine.. Expensive wiskey.. etc..
You’ll make money. But it’ll be a hassle to start, but to get things started look to make a couple bribes.
Great but you need to make frequent trips to
the actual factory itself , get to know the factory owners and speak Chinese or have a trusted Chinese translator….
tom sums it up well…
Nice one Tom, thats about exactly right. One more thing, do not get involved in the bribes yourself as you could also find yourself in hot water as Chicata Banna Company did in Columbia recently.. Always let the Chinese deal with the Chinese like Tom suggests.. They can deal with all the under the table issues..