Only by carefully analyzing the customer’s willingness to buy and understanding their real needs can we draw up a targeted and good quotation. Some customers regard low price as the most important factor. If you offer them a price close to your bottom line at the beginning, the possibility of winning the order will be greater.
Do a good job of market tracking and research to understand the latest market trends. Due to the high transparency of market information and the more rapid changes in market prices, exporters must quote prices “follow the market” based on the latest market information so that transactions can be concluded.
It is a rule of thumb that business personnel often go to the factory area to collect sources of goods and are very clear about the selling prices of some local manufacturers. At the same time, as a professional company that operates a single product for a long time, due to long-term business expansion in the industry, it not only understands the development and price change history of this industry, but also can make reasonable analysis and predictions on recent trends.
In a quotation, price terms are one of the core parts. Because the price term used actually determines the division of responsibilities and rights and profits between the buyer and the seller, before preparing a quotation, the exporter must not only try to meet the customer’s requirements, but also fully understand the true meaning of various price terms and carefully choose, and then make a quotation based on the selected price terms.
Choosing to trade at FOB price is beneficial to oneself under market conditions where freight and insurance premiums fluctuate and are unstable. However, there are also many passive aspects, such as: due to the importer’s delay in sending the ship, or the delay in loading due to various circumstances, the change of the ship’s name, the exporter will increase the expenditure of warehousing and other expenses, or the delay in receiving the payment will cause interest losses. In terms of the exporter’s control over the export goods, under the FOB price conditions, since the importer contacts the carrier to send the ship, once the goods are loaded, even if the exporter wants to resell the goods during transportation or at the destination, or take other remedial measures, it will be quite troublesome.