How to Start Negotiating?

by antis
11 replies
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Hey everyone, I've found a really good product with huge demand and profit margin. How to convince my supplier to accept a consignment deal? I don't think he would like to deal with me if I will tell that I am just a beginner, and have no investment. Any suggestions? How should I start a conversation, and what should I tell him? Thanks in advance.

P.S Supplier is located in China.
#negotiating #start
  • Profile picture of the author antis
    Anyone..??
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  • Profile picture of the author kjamesnv
    Its not going to be easy.

    Look at it from the suppliers perspective. Why would he assume all the risk while you assume none? You have to have some skin in the game to be taken seriously.

    You will have better luck getting the supplier to ship a small order until you can build up your business.
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  • Profile picture of the author antis
    Isn't there any agreement that both parties need to sign? I don't think it happens offhand
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  • Profile picture of the author nssan1
    You will need to leverage something you have inherently. If you don't have a site that is already receiving tons of traffic and have a solid distribution system, It will be very hard for you to convince a Chinese supplier on consignment terms. You might be more likely to convince them to 90 days payment terms. Agreements means little in China, they often do business on a handshake or over dinner so foreign agreements won't mean much except for a formality. Of course, this also goes without saying, the product don't just sell itself, so if you can start by pitching it from that angle then it will ease in the conversation. Be prepared to receive a lot of noes.
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  • Profile picture of the author upnya
    Yeah never admit to being a new seller. Have you considered applying for a business credit card? I use the "Spark" card for all my ordering, I get 2% cash back and basically get around 45 days to pay off the balance in full (which I always do).

    I source from only U.S. companies, and the first thing I always ask is: "What size order do I need to place to qualify for free freight?"

    This can make you sound like a bigger seller, and can save you hundreds of dollars if the supplier offers such a thing.

    Good luck!
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    • Profile picture of the author antis
      Originally Posted by upnya View Post

      Yeah never admit to being a new seller. Have you considered applying for a business credit card? I use the "Spark" card for all my ordering, I get 2% cash back and basically get around 45 days to pay off the balance in full (which I always do).

      I source from only U.S. companies, and the first thing I always ask is: "What size order do I need to place to qualify for free freight?"

      This can make you sound like a bigger seller, and can save you hundreds of dollars if the supplier offers such a thing.

      Good luck!
      What are the requirements for the card? Do you need to have personal assets or something?
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      • Profile picture of the author upnya
        No personal assets needed really. Just a standard credit card online application. I did it on a whim because I don't have the best credit and shocked they approved me for a $10k limit. I was stunned, ymmv.
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        • Profile picture of the author antis
          Originally Posted by upnya View Post

          No personal assets needed really. Just a standard credit card online application. I did it on a whim because I don't have the best credit and shocked they approved me for a $10k limit. I was stunned, ymmv.
          But as I see you can only apply if you're from United States
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  • Profile picture of the author Hydraman
    Have you considered drop shipping to start with? You may be able to drop ship to build capital and then you can start buying products to resell
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  • Profile picture of the author spearce000
    The best book I've ever read on negotiating is You Can Negotiate Anything by Herb Cohen. They sell it on Amazon. I bought a copy 30 years ago, and the knowledge I gained has served me well over the years. I'm sure it will be able to help you, too.

    While it (obviously) won't cater to your particular situation, it will help you develop the right mindset to negotiate effectively with these guys.
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  • Profile picture of the author VinceRivers
    The drop shipping suggestion is a great one. It's really hard to get a foothold when you're just starting out. Just keep in mind that you don't want to grow too fast and overstep your skills and resources.
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