Second-tier distributors commonly use the following 7 negotiation tactics to bargain with our sales representatives: Tactic 1: "Your price is too high; I can't take the goods. Go back and ask your boss for a better deal." When a sales rep quotes a price, the second-tier distributor usually says it's too expensive to accept, mentions that a competitor's similar product is cheaper or that gray-market goods are cheaper, and asks for a discount. The sales rep, unable to resist, offers a discount within their authority, and then the distributor asks for even more. Distributor's exact words: "If the price is right, I can order two more sets." The distributor's intention is not necessarily to place an order immediately or pay right away; they just want the sales rep to believe they are serious about buying. After the rep goes to the boss for the lowest price, the distributor will negotiate based on that price. Tactic 2: Bargain further on the minimum price After the sales rep offers the lowest price they can, thinking it's already very low and close to the distributor's expected price, the distributor says: "The price you got is not the lowest I want. Let me tell you my target price. You need to drop it by XX yuan. I promise I'll order this time. I know it's tough, but can you ask your boss again? If yes, I'll order immediately." To get the price they want, the distributor claims the price is still above their target and threatens to buy from competitors. Some distributors even team up with others, but their friends will say the price is high—this is an act to make the sales rep think the deal is slipping away, pushing the rep to seek a lower price. At this point, the sales rep often loses composure and goes to the boss for another price reduction. You end up lowering the price a bit more, and only then does the distributor agree to buy. Tactic 3: Ask for freebies after agreeing on price Many distributors only ask for free gifts, like umbrellas, when they are about to pay. Tactic 4: Request credit for bulk orders or new product trials If you ask a distributor to try a new product, they might say: "This new product won't sell. Just leave it here, and I'll try to sell it for you." For bulk orders, they might say: "I'm short on cash right now; I'll pay you next time." The distributor thinks the sales rep will see this as reasonable, especially since they've finally landed a big customer. Because of this mindset, the sales rep falls into the trap. Tactic 5: Ask to waive the odd amount Waiving the odd amount is common. Distributors often refuse to pay the change on large orders, saying, "I've bought so much and helped you a lot; you can't be stingy about this small amount." Tactic 6: Only accept bestsellers, not new products as freebies Distributors are strict on price and only want bestsellers. They reject new products and ask to swap freebies or niche items for bestsellers. Tactic 7: Demand resolution of previous issues before ordering They explicitly say they won't place an order unless previous expenses or near-expiry products are handled. After using these tactics, many sales reps are defeated. When the distributor finally agrees to order, they might add: "Well, I'll pay by check today, but come back in a couple of days to collect the money." After several rounds of bargaining, the distributor gets everything they want, and the sales rep goes back to the boss feeling defeated. Some distributors are still unsure whether to accept the quoted price. They might shamelessly take the quote to competitors and get a lower price. The sales rep can only shed tears of frustration! So, what should we do as sales reps against these 7 tactics? Our motto is: "Don't fear the distributor's bargaining; fear the sales rep's lack of preparation." Remember these 20 principles of price negotiation. Only then can we avoid being so passive in the sales process. The 20 principles are:

  1. Never make concessions voluntarily or unconditionally; whoever gives in first is at a disadvantage.
  2. Never reveal your bottom price; instead, try every means to find out the distributor's price limit. Whoever reveals their bottom price first is at the other's mercy.
  3. Never agree to the distributor's demands without any commitment or concession from them.
  4. Even if you must give in, never do it all at once; the concessions should get smaller each time.
  5. The distributor doesn't need the lowest price, but you must make them believe it is the lowest.
  6. Whoever quotes first loses; get the distributor to quote first, as their quote usually reflects their target price.
  7. Always exchange conditions: if they want credit, ask them to take new products; if they want free gifts, ask them to order more. Never give benefits unconditionally.
  8. Don't get stuck on price; if you can't agree, talk about something else, like how other distributors sell a lot of our products or stock many of our items. Stepping away from price can relax both parties and lower their guard.
  9. Don't proactively offer discounts; if the distributor hasn't asked, offering a discount is like a woman offering a dowry before the man proposes—it shows you're desperate.
  10. Don't discuss price until the distributor is seated. Standing, they can walk away anytime, and neither of you will take the conversation seriously. Sit down and talk slowly; the longer you talk, the higher the chance of closing the deal.
  11. A distributor who bargains is a real buyer. One who just asks questions and praises everything is like a man trying to get you into bed—he says nice things just to please you, not to marry you.
  12. Don't discuss price discounts until the distributor has decided on the quantity; otherwise, it's a waste of time.
  13. Talk about value, not price. The distributor isn't buying the price itself but the real profit behind it. They don't want cheap products; they want to feel they've gotten a bargain.
  14. Talk about turnover, not profit. Compare which product sells faster at different profit levels, just as you can't compare a BMW to a BYD on price alone.
  15. Sales reps should never just lower the price without changing other terms, like increasing order quantity or adding new products.
  16. Don't give the bottom price until you have a deposit. If you do, you'll be fooled; the distributor won't thank you or believe it's the real bottom price, and they'll just ask for more.
  17. Visit the manager's office at least three times before agreeing to a price cut. The distributor doesn't just want a low price; they want to see you've worked hard for them. Run to the office with a flushed face, and the deal will be signed.
  18. If you've made concessions but still can't close, go to the manager's office and come back with a higher price. If you raise the price with a reasonable explanation, a miracle will happen—the distributor will immediately agree to buy! (End)