Essential for Foreign Trade Sales: Six Common Bargaining Tactics Buyers Use and How to Respond

Start Free Trial

Back

2025/01/22

Essential for Foreign Trade Sales: Six Common Bargaining Tactics Buyers Use and How to Respond

In the world of foreign trade, price negotiations are a challenge that nearly every salesperson will face. Buyers are often armed with certain negotiation tactics, and they may try to exploit these strategies to lower the price. These tactics are usually rooted in understanding the seller's mindset and market dynamics, and buyers use them to maximize their benefit. As a foreign trade salesperson, understanding these common tactics in advance and preparing appropriate responses is key to ensuring successful negotiations.

Here are six common bargaining tactics used by buyers and tips on how to handle them effectively.

1. Anchoring

Buyers often set an initial budget limit to frame the negotiation. For example, they might say, "We’re looking to spend no more than $50,000."

The core of this strategy is setting an “anchor point” early in the conversation, such as a maximum budget or target price, to influence the price negotiation.

How to Respond:As the seller, it's ideal to be the first to propose a price rather than waiting for the buyer to offer theirs. If the buyer sets a budget limit, don’t take it at face value. Instead, ask them why they have such a budget and what product they’re expecting within that range. This will help you better understand their true expectations and allow you to counter their "tactic" more effectively.

2. Whack Back

This is one of the most common tactics: no matter what price you offer, the buyer immediately responds by saying, "Your price is too high."

How to Respond:Don’t get flustered. Instead, ask why they believe the price is too high and listen carefully to their reasons. The key here is to understand the buyer’s needs more thoroughly, as their response will often reveal whether they are looking for a better price, more value, or something else entirely. For example, if they say, "I’ve bought this before for X," you could reply with, "I believe we’re here because you’ve encountered problems with X before. Our product is different, and we offer more reliable quality."

By understanding their true concerns, you can highlight the unique value your product offers, justifying the price.

3. Sticker Shock

When the buyer sees the price, they might react with, "How much?!"

This is often a dramatic response meant to shock you into lowering your price, but it’s likely just an act. Buyers are usually aware of market prices by the time they contact you.

How to Respond:Don’t take their reaction too seriously. Simply ask why they find the price high, and try to uncover the reasons behind their shock. Listen carefully, and then look for any inconsistencies or gaps in their argument. From there, you can present a strong case to counter their concerns and show the value behind your pricing.

4. Cherry Picking

Here, the buyer might change the order quantity or components and request that the original price still applies. For example, they might say, "I know I initially ordered 5,000 units with 5 components, but now we only need 500 units and 2 components. The price should be adjusted accordingly."

How to Respond:In this case, be clear with the buyer: "I’ll need to review the pricing based on the new order size and terms." The buyer may act like they don't understand how these "new terms" came up, but don’t let them dictate the negotiation. Stick to your pricing model and explain how changes in quantity or terms affect the cost structure.

5. Pencil Sharpening

A common tactic: "You’re going to have to do better than this. We need a lower price."

This is a form of pressure designed to "prepare" you for a lower price demand, with the intention of getting you to concede.

How to Respond:Avoid asking, "Well, where do we need to be?" This is a trap that can lead you into a pricing battle. Instead, focus on asking questions like, "Why is the price too high for you?" or "What other product are you comparing ours to?" Shift the conversation back to the value of your product. If you have a solid solution to the buyer's concerns, they are less likely to continue pushing for further reductions.

6. Going, Going, Gone

Here, the buyer might say, "If you don’t make this concession, I’ll take the order to your competitor by noon."

This is a time-pressure tactic designed to force you to lower your price before they move on to a competitor.

How to Respond:Don’t panic or immediately cave to their demand. Instead, you can reply, "I’m in the middle of something right now, but I’ll get back to you shortly." Or ask, "So we’ll know for sure after your meeting?" By responding this way, you buy yourself some time to think and assess the situation more clearly.

If the buyer insists, it may just be a bluff. However, if they really do give you a deadline, take time to consider your best offer and respond accordingly. But remember, if you give in too easily now, they may expect more concessions in the future.

How to Leverage Tools for Better Customer Development:

In foreign trade negotiations, understanding your buyer’s background and needs is essential. Using tools like TradeInData, you can quickly search and filter potential clients by keywords or HS codes, and view their detailed trade records, partners, ports, product categories, and more. This information is invaluable in understanding a buyer’s purchasing habits and demand changes, allowing you to be better prepared in negotiations.

Additionally, TradeInData offers market analysis features, letting you view import and export data for specific categories and markets. This can help you gain insight into market trends and customer needs, enabling you to make more accurate pricing decisions and strategic moves.

With precise customer data and market insights, you can efficiently find potential clients and develop customized negotiation strategies to increase your success rate in foreign trade.

Now that you understand the common bargaining tactics used by buyers, the next step is preparing yourself for how to respond in future negotiations. Remember, sales is all about uncovering the true issues behind a buyer’s concerns, distinguishing between their "bluffing" tactics and legitimate concerns. And always keep in mind that "you" as a salesperson add value beyond just price—what else can you offer that enhances the overall value of your product?

Previous Knowledge Next Knowledge

Related knowledge

Developing premium customers, starting with Trade In Data!

Unlimited access to trade summaries of real importer and exporter for free

Start Free Trial

Try Tradeindata for free

Unlimited product search

Unlimited company search

Unlimited Hscode search

230+countries unlimited viewing

Start Free Trial

Try Tradeindata free, no credit card required. By entering your email,
you agree to receive marketing emails from Tradeindata.