What to Do When Foreign Clients “Disappear” After Receiving Your Quotation? These Tips Can Help!

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2024/10/22

What to Do When Foreign Clients “Disappear” After Receiving Your Quotation? These Tips Can Help!

In foreign trade, price is always a crucial factor. Clients are highly sensitive to costs, and for newcomers, it's common to experience situations where clients "disappear" after receiving a quotation. Without a clear understanding of the client’s specific needs or target price, quoting too low may result in minimal profits, while quoting too high could scare away potential clients. Knowing how to navigate quotations effectively is essential.

1. Preparation Before Quoting

Before sending out a quote, thorough preparation is necessary. Market analysis and customer research should not be overlooked.

First, it’s important to understand the market trends and the pricing levels of your competitors. By keeping up with market changes and avoiding random quotes, you increase your chances of closing deals. Understanding your competitors’ product strengths and weaknesses also helps avoid passive situations during negotiations.

Second, it’s crucial to analyze the buyer’s background quickly. Consider the buyer's country’s economic level, procurement habits, company type, and other factors to gauge their purchasing needs and budget. Information such as the buyer’s willingness to buy and the actual demand can be gathered quickly through their website and available data, providing a solid foundation for a tailored quotation.

For different markets, clients from developed countries like Europe and the U.S. tend to focus more on quality, allowing for higher price points, whereas clients from developing or less-developed regions may prioritize lower prices. End users care more about product quality, while traders are often driven by price.

2. Techniques to Avoid “Ghosting” After Quoting

Low-Price with Conditions

When offering a low price, set a higher minimum order quantity (MOQ), even if it exceeds the client’s estimated order quantity. This strategy sparks the client’s interest and leaves room to increase the price later, if necessary. Link the low price to conditions like higher volume, advance payment, or longer lead time.

High-Price with Small Orders

When quoting a high price, set a small order quantity that the client can easily meet, offering discounts for larger volumes. This gives the impression of flexibility and encourages negotiation while maintaining higher margins.

Tiered Pricing

Introduce tiered pricing based on order quantities, cooperation duration, or whether the product is customized or standard. This approach gives clients more options and increases the likelihood of them choosing your offer.

Competitive Comparison

Since clients often compare multiple quotes, it can be helpful to present a price comparison with other industry competitors. Show clients they’re not necessarily paying more but receiving better value, discouraging them from endlessly seeking lower prices elsewhere.

Psychological Pricing

Avoid using round numbers when quoting, as clients may perceive them as less credible. Instead, use pricing like $999 instead of $1,000, leveraging psychological pricing techniques to make your offer more appealing.

Cost Breakdown

Break down the costs in detail, showing how specific components of the product or manufacturing process affect the final price. Offering alternatives, such as cheaper materials or processes, can appeal to cost-sensitive clients.

Bundled Quotation

When a client requests multiple products, combine them into a bundled offer. Apply the 80/20 rule—while some products may not yield much profit, others can compensate for this, ultimately boosting overall profitability.

Regardless of the strategy, always include a validity period in your quotes. This allows for price adjustments later and gives you an opportunity to re-engage clients during follow-up.

3. Keys to Effective Quotation Responses

Attention-Grabbing Subject Lines

Ensure that your quotation stands out among the many that your client may receive during the same time period. Craft a subject line that is compelling, such as “Our Advantage + Client’s Product,” to capture their attention.

Include Product Information and Images

Avoid sending a bare price quote. Instead, attach additional product details, packaging options, container information, and product images. This not only gives clients a clearer idea of the price but also conveys professionalism, making them feel that engaging with you will provide valuable industry insights, regardless of whether a deal is made.

Enhance Your Quoting and Client Development with Tradeindata

Need to quickly analyze a client’s background and purchasing data? Tradeindata is a powerful tool that streamlines the client development process. By entering keywords, HS codes, or company names, foreign trade professionals can easily access global client purchasing records.

Tradeindata provides detailed information such as product categories, volumes, purchase amounts, and transaction frequencies, along with trade partners and commonly used ports. With these insights, you can tailor your quotations more effectively and increase the chances of a successful deal.

4. Flexibility After Quoting

A quotation is rarely the final step. Clients seldom agree to the first price, so maintaining communication is essential. Keep the dialogue open to address any concerns or adjustments needed. The ultimate goal of quoting is not only to secure the deal but also to encourage the client to stay engaged and continue the conversation for future cooperation.

In foreign trade, adopting a flexible quoting strategy helps you stay competitive. With accurate market research, adaptive pricing methods, and consistent follow-up, you’ll significantly increase your chances of converting quotes into successful business deals.

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