Bargaining in China – doin’ it right with no side effects
Why do people come to Foshan or China? For furniture, plumbing fixtures, sanitary ware, decoration and finishing materials, decor items, lighting and much more. And all of them coming and wait for the haggling part that they all seen and read about. Depending on the culture, people hope for discounts from 20% to 80%. In this article, we tried to answer if you need to stop if you can get a bigger discount. Please notice that haggling video in China fake markets is very different from furniture markets simply because it’s a more complicated product, technologically and distributing vice.
Crazy discounts lead to poor quality
If at first you don’t succeed try, try and try again.
Often vendors don’t want to let you have it your way when haggling, saying they can’t make the same quality for a cheaper price. They make a small discount almost always. If, however, the supplier still agreed to a significant discount (say more than 50%) after long and exhausting negotiations, wait for a surprise when accepting the goods.
Suppliers can change the material to lower quality, replace the filling of your sofa, etc. (of course, this is only when buying custom-made furniture). In fairness, suppliers just trying to match your price requirements. For Chinese, long negotiations for big discounts mean that most likely you are more interested in price than quality. That is why we do product quality control for our customers.
Rule of thumb: Good quality (differs from factory to factory) cannot cost less than a certain amount. The factory will have its profit anyway and it’s completely normal.
Keep in mind: When haggling know when to stop. Study the market and the average price for similar models.
With one exception: showroom samples
Showroom samples are perhaps the only items in furniture markets which you can bargain for to the last. The quality will not change and this product will be sent directly from the showroom. Of course, not everything is so simple: new collection samples are never on sale, usually, samples can be bought at the end of each year, before a new collection arrives. Some models are discontinued and you may even be its last buyer.
Price may change just before the start of production
Let’s suppose sellers agreed to your price without changing the quality of the product and its characteristics, they vowed and declared. What's the tricky part? They may change the price of the goods after you leave. After all, the factory also doesn't want to risk its reputation in terms of quality, it is easier to tell you that prices for materials have raised. In many cases, when working without agents, customers are faced with this because suppliers understand that you are far away and can't influence in any way. Our company is always on a call and controls the entire process from placing orders to the end of production. We have vast experience in resolving such issues.
Additional payments whenever you sneeze
Sellers agreed on your price, promised good quality and even look like decent manufacturers. Remember the main rule: Good quality at each factory cannot cost less than the production cost. If the price of the goods is cheaper than prime cost, the manufacturer will be forced to compensate for this difference by adding additional payments: for packaging or delivery to the warehouse, you will pay several times more for these services. Buy nice or buy twice.
How to haggle on furniture markets and factories in China
- It’s normal and culturally appropriate to bargain in China;
- Do it right, a small discount (10%-20%) is easy to get;
- If suppliers are getting angry about the discount – you’re asking too much, lower your discount crave;
- Buy as much as you can from the same supplier to get a better deal.
Wholesale understanding in China is different from yours
The wholesale amount for western countries and Chinese suppliers might be very different. Many small buyers come to Foshan and hope for a good discount, taking a wide range of goods. In Chinese manufacturer's understanding wholesale starts from 1 container of 1-5 units (sofas in 3 different colours count as 3 units).
Do not try to convince Chinese suppliers that you are a wholesale buyer, but the first batch is small, and after the trial order you going to get container after container. Vendors and manufacturers only focus on the current order to set the price for this particular order. A wholesale price is either one large order or many small prepaid. If you want to buy a pair of sofas to try them on your customers, you will get retail prices.
Foshan is a unique place where you can buy everything for decorating and designing your home: plumbing fixtures, furniture, kitchens, flooring and much more. Bargaining is necessary here it effects good on your mood and product prices, the most important is to know when to stop and have a reliable partner in China.
Our company has been working in China for over 10 years and has extensive experience working with Chinese suppliers. We work with customers from all over the world and help them to buy furniture. We have already delivered from China to more than 40 countries.