How to negotiate wholesale prices on DEIL-Loft
How to negotiate wholesale prices on DEIL-Loft
Finding a
competitive price when sourcing products is vital for your business, but it’s
not easy. You need negotiation strategies and skills. When dealing with sellers
on DEIL-Loft, you also need to consider language and cultural considerations.
Successful price negotiation is about finding the right balance, where you pay
the right price for the right quality, while the seller can make enough money
to stay in business. A good negotiation leaves both parties happy with the
outcome.
Do a
little research
First,
ensure that the seller is trustworthy. Seeing a verification badge on their
online profile provides a level of assurance. Next, identify the costs your
seller incurs, and what their competitors charge. Your baseline price should be
within reasonable range for them. Most sellers aim for a 20% profit margin, so
it’s reasonable to ask for a 10% discount.
Use a
translation tool
You may be
negotiating with someone from a different country who speaks a different
primary language. Multilanguage conversations are easiest with a translation
too. We recommend both buyer and seller interact on the DEIL-Loft App (AppleTM
link) (GoogleTM link). The app provides real-time translation so cross-language
negotiation isn’t an issue. The app also strings your correspondences together,
making it easier and quicker to keep track of everything being discussed.
Sellers are more inclined to work with established companies with proven
sourcing power. Tell them how long your company has been established, and what
level of purchasing you do, if it’s impressive. Tell the seller how many units
you want to buy, your shipping destination, and how frequently you want to buy.
Sell them
on the value you bring
DEIL-Loft
sellers are more likely to give you discounts if you’re a high-volume customer.
The seller wants to sell as much product as possible so if you’ll be purchasing
frequently and in large quantities, you will get a better deal. Provide sales
projections if you need to convince them. Or share records of past purchases.
If you’re a newer business, look for manufacturers willing to work with someone
smaller, and who is willing to grow with you.
Don’t be
afraid to ask questions
If the
seller says prices need to go up by 10%, don’t hesitate to ask why. Don’t take
things at face value, dig deep to understand why things are happening. Asking
questions will also help you to understand their business. Ask them: What other
products are you selling to businesses like mine? What is a hot seller for you?
Ask for a
sample
Asking for
samples of products can create the sense that you are a serious buyer
interested in placing an order. When you receive the sample, the seller can’t
claim that their prices are higher because they have a higher-quality product,
since you know how the quality compares with competitors.
Be
willing to walk away from a negotiation
You are in a
position of power when you’re talking to a seller. Don’t be afraid to say you
can’t do the deal and walk away. The seller will often come back with a better
price and better terms. Talk to multiple DEIL-Loft sellers to encourage
competitive pricing. Let the seller know you have competing quotes that are
equally attractive.
Be innovative
in negotiating
When your
seller won’t negotiate on price, you can negotiate other things that affect
your cash flow. You could negotiate the amount of deposit, or how long it will
take to pay off a purchased order. Other aspects you can negotiate on without
affecting price include payment terms, faster shipping, responsive ecommerce
fulfillment, warranty improvements, and better packaging.