Distributors often use the following 7 bargaining tactics to negotiate with our sales reps:

Tactic 1: "Your price is too high, I can't take the goods. Go ask your boss for a better deal."

When a sales rep quotes a price, the distributor typically says it's too expensive and that they can't accept the goods. They'll mention that a competitor's similar product is cheaper, or that gray market goods are cheaper, and demand 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 pallets."

The distributor's intention is not necessarily to order immediately, but to make the sales rep believe they are serious about buying. After the sales rep goes to their manager for the lowest price, the distributor will negotiate based on that price.

Tactic 2: Bargain further after getting the lowest price

After the sales rep offers their lowest price, thinking it's already very low and close to the distributor's expectation, the distributor says: "This price is still not what I want. Let me tell you my target price. You need to drop another 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 too high and threatens to buy from competitors. Some distributors even collude with other distributors to pretend the price is too high, making the sales rep think the deal is slipping away, forcing them to ask for an even lower price.

At this point, the sales rep often loses composure and goes to the manager again, offering another discount. The distributor will only agree to buy after the sales rep lowers the price further.

Tactic 3: Ask for freebies after agreeing on price

Many distributors only ask for free gifts (like umbrellas) when they are about to pay, after the price is settled.

Tactic 4: Request credit for bulk orders or new products

If the sales rep asks the distributor to try a new product, the distributor says: "This new product won't sell. Just leave it here and I'll try to sell it for you." For bulk orders, they say: "I'm short on cash right now. I'll pay you next time."

The distributor thinks the sales rep will find this reasonable, especially since they've finally landed a big customer. This mindset leads the sales rep into the trap.

Tactic 5: Ask to waive the odd amount

Distributors often ask to round down the total, especially for large orders, and they justify it by saying they've helped the sales rep by buying so much.

Tactic 6: Only want bestsellers, not new products

Distributors are strict on price and only want bestsellers. They reject new products and ask to swap freebies or small-category items for bestsellers.

Tactic 7: Demand resolution of previous issues before ordering

When ordering, they explicitly say they won't take delivery 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: "I'll pay the invoice today, but I'll come back for the goods in a couple of days."

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 to get a lower price. The sales rep can only cry in frustration!

So, how should we, as sales reps, counter 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 to 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 line; instead, try to find out the distributor's price limit. Whoever reveals their bottom line first is at the mercy of the other.
  3. Never agree to the distributor's demands without any commitment or concession from them.
  4. Even if you must give in, don't 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 they've got it.
  6. Whoever quotes first loses; try to get the distributor to quote first, as their quote is usually their target price.
  7. Always trade concessions for something: if they want credit, ask them to take new products; if they want free gifts, ask them to order more. Never give benefits without conditions.
  8. Don't get stuck on price; if you can't agree, talk about something else, like how much other distributors sell or stock. Take a break from price discussions to relax 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 won't take you seriously. Sit down and talk slowly; the longer the talk, the higher the chance of closing the deal.
  11. Distributors who bargain are the ones who will actually buy. Those who just ask questions and praise everything are like a man trying to get you into bed—they say nice things to please you, but they won't commit.
  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 profit it brings. 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 margins, just like you can't compare a BMW to a BYD on price alone.
  15. Don't just lower the price; change other terms, like increasing order quantity or adding new products.
  16. Don't give your bottom line until you have a deposit. If you do, you'll be fooled, and the distributor won't appreciate it or believe it's the real bottom line. They'll just ask for more.
  17. Run to the manager's office at least three times before agreeing to the distributor's price cut. They don't just want a low price; they want to see you've worked hard for them. Run back and forth until you're flushed—that's the performance that seals the deal.
  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)

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Long press the QR code below to add Manager Lin's WeChat: Guangdong Heyuan Fengsheng Food & Beverage Co., Ltd.

Website: WWW.FOODSUN.CN

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