If this is your first time working with a factory and you production size is small (less than $50,000), then it is safe to assume you don’t hold a lot of negotiation power. Instead, your focus on a successful negotiation should be ensuring all parties understand the major points of the production requirements, and the small or minor points are discussed.
Factories are often working on razor thin margins, and one of the ideal ways to ensure product quality is to be confident the factory is making enough money off an order for them to demonstrate some degree of care.
When you beat a factory down on price, you’re the one who loses. Your quality virtually always goes down with the price, when you negotiate in this fashion. We can attempt to shave some percentage points off the price, we suggest your focus be placed on the long term, cost saving tactics for negotiating.
Below are half a dozen suggestions we would like to present to you, so you can begin to inform us of your negotiation goals.
What Not to Expect:
In general, factories tend to be conservative when it comes to ideas; however, that does not mean creative or unique deals can’t be presented to the factory. Below are some things you should not expect to happen during your negotiation: