The process of quotation processing for novice foreign trade salesmen is often relatively simple: the superior manager gives a price and then gives the quotation. If the customer counters, the salesman reports to the superior manager. The salesman is basically a “megaphone”. However, since the customer and the company do not know the details of each other, it is difficult to achieve a transaction effect by simply “transmitting the voice”. This situation is particularly evident in the inquiries of customers who emphasize low prices. Therefore, after the salesman has been tempered to a certain stage, he must strive for a higher level, gradually change from passive to active, and try to “guide” customers and companies more to promote the conclusion of business.
This “guidance” is based on three concepts:
1. The price is dynamic. Depending on the size of the order, the arrangement of the production period, the transportation method and the payment method, there will be a big difference. At the same time, the cost structure of a product is complex, and a change in a certain component or processing step can often bring about a considerable change in cost.
2. Customers may not necessarily stick to their requirements for products. Especially for consumer and craft products. For example, if the original plan is to order 1,000 units, if the negotiation goes well and the customer has confidence, the order may eventually be increased to 5,000 units. Or the customer originally wanted a full metal product, but in order to get a low price, he may accept a suggestion like “metal on the outside and resin or plastic parts on the bottom and inside”. Through such flexible suggestions, the two parties can coordinate on the price.
3. The company does not necessarily stick to the so-called product price bottom line. Especially for factories with many product styles, the sales department can only estimate the approximate cost in advance, plus the expected profit to become the quotation bottom line. But in fact, this quotation bottom line has a lot of variables. For example, next month is a production gap, and in order to maintain production, orders may be accepted with a small profit or even break-even. Or funds are tight and a sum of money is urgently needed for turnover or a letter of credit for a loan. Using these variables, the salesperson not only alleviated the factory’s predicament, but also reached a deal that was originally hopeless and achieved results.