Before we proceed to what a manufacturer/ supplier should do to impress upon the buyer that he is the best, we have to see things from the point of view of the buyer. The supplier needs to understand that any buyer will contact several suppliers before he settles for the best deal.

For a buyer after he has contacted a few suppliers, it’s time to narrow down the field further and choose one to work with. He will invariably review each proposal from interested parties and follow references where they have been given; and interview the supplier of choice before he asks them to start work. Once the buyer is happy with the details it is time to get a contract in place.

Know the buyer:
It is very important to know the buyer — about what he wants, why he wants to buy your products, what is his past buying records, etc. Different types of buyers have different objectives and levels of experience. Knowing these differences can help you as a supplier in getting the deal you want. As you begin your discussions with potential buyers, it's important to keep in mind that their goals and objectives can vary greatly.

Your understanding of the buyer's ultimate plans for the business, their expected level of involvement and network of resources, are all important considerations. Knowledge of a buyer's expectations for the business can be highly beneficial for both negotiations and the closing of a successful deal.

Be Flexible:
As a buyer he would look for someone who is flexible. Assure him that you can deliver according to his needs. Sometimes it pays to be flexible with the fixed minimum quantity too. A buyer who is small today may be a big buyer tomorrow. So try to help him out. Having said that be assertive about the time-frame for deliver, transactions, etc.

Be frank, but be polite during discussions:
It is a fact that you have to be very communicative if you are to impress the buyer. For that you need to be well-versed in your product line. Be frank about what you can deliver. Don't exaggerate. Ask the buyer what his requirements are. If you feel you can deliver, carry on with a second follow-up discussion. If you feel that the buyer's requirements are not in line with what you manufacture or supply, then let him know. Don't waste his or your time in discussions that will bear no fruits.

If you feel that the discussions are heading the right way, elaborate on your company's policies — who will take responsibility of damaged goods and other related payment issues like late payments, delayed shipments, etc.

Your Quotation:
This is perhaps the most tricky part. The big question is 'what is the right quote?' The answer to this question depends on the amount of homework you have done. Being a supplier one should know what the competitors are doing. However it doesn't mean that you should quote a price lower to what the other suppliers are quoting. Quote the price that is best for your company. If your prices are higher, explain why they are so. Give the buyer the advantages of buying your products.

Keep in mind that the payment portion of a buyer's offer should not be your only focus in a transaction. Next time when a buyer approaches you bear in mind these points. Show that you are the best in the market.

Tradeindia Editor

(Tradeindia Expert)

Tradeindia.com

Tradeindia.com
New Delhi, India