1. Deeply explore the customer’s true intentions (avoid blind price cuts)
Customers have complex motivations for lowering prices, so we need to identify the core contradictions through key issues:
1. Check the order status
Talking skills :
English: "I am sorry to hear that you may choose another supplier. Can you confirm that the order has been delivered? If not, can we discuss how to meet your core needs? "
English: "I appreciate your frankness. Could you confirm if the order is already placed? If not, I'd like to discuss how we can align with your key priorities beyond price."
Case : A machinery exporter encountered a customer who claimed that he had "placed an order with a low-price supplier". After further questioning, it was found that the customer's terminal project had not been started, which was actually a means of pressure. Later, the company regained the order by providing customized technical solutions.
2. Dig up competitor information
Talking skills :
English: "Differences in configurations between different suppliers may lead to price differences. In which region is the low-price supplier you mentioned located? If it is convenient to share the quotation details, I can help you analyze whether the product parameters match your needs."
English: "Price variations often reflect technical specifications. May I know the supplier's location? Sharing their quote details (if possible) will help us ensure you get equivalent value."
Key point : Avoid asking directly the name of the competitor, and focus on configuration differences (materials, certifications, delivery cycles).
2. Build value barriers (core strategy beyond price war)
1. Technical parameter benchmarking method
Action : Make a comparison table (as shown below) to highlight the hidden value
parameter |
Our products |
Common products in the market |
---|---|---|
Material |
Aviation grade aluminum alloy (with test report) |
Industrial ordinary aluminum |
Warranty period |
5 years |
1-2 years |
Failure rate |
<0.5% (with customer case) |
>3% |
Talking skills :
English: "You see, although our unit price is 8% higher than that of Company B, the cost of downtime due to failure can be reduced by 62% based on a 5-year usage cycle. This is the energy consumption comparison data of XX customer (with attached chart)"
English: "Our premium materials reduce downtime costs by 62% over 5 years. Here's an energy consumption report from [Client Name] providing long-term savings."
2. Risk Case Warning Method
Case : A security equipment manufacturer shared a true story when faced with a customer choosing a low-price competitor:
"Last year, a Middle Eastern customer selected a low-priced bracket, which broke during installation, causing serious injuries to workers. The supplier pushed the blame and disappeared, causing project delays and losses of more than $120,000. This is a photo of the accident site (coded) and our ISO 45001 safety certification."
Talking skills :
Chinese: "Low prices may hide supply chain risks. All our accessories can be traced back to the original factory batch number. This is a demonstration video of the material traceability system."
English: "Hidden risks in cheap products can be costly. Our traceable supply chain prevents safety incidents like this case (link attached)."
3. Flexible payment options
Case : When the negotiation of medical equipment reached a deadlock, the following was proposed:
"The total price of $4,800 is beyond your budget? You can split it into: $3,000 paid by letter of credit, $1,800 in 6 months (0% interest). Here is the installment plan calculator link."
Talking skills :
Chinese: "To reduce financial pressure, we provide three payment combinations (attached with a table of plans), you can flexibly choose according to your cash flow."
English: "Our flexible payment options (view calculator) help you manage cash flow without sacrificing quality."
3. Step-by-step concession strategy (keeping the bottom line of profits)
Follow the "conditional exchange" principle to avoid unnecessary price cuts:
1. First step: non-price concessions
Extend the warranty period (e.g. 2 years → 5 years)
Free training (remote/onsite)
Priority production rights
Talking skills :
Chinese: "If you sign an annual agreement, we can extend the warranty to the industry's highest five years and provide two free online training sessions with our engineers."
2. Second step: Minor price adjustment
Bundle Order:
“This 3% price reduction per unit requires an MOQ of 50 units, but return orders next year can lock in the current price.”
Cost transparency:
"This is a chart showing the price trend of raw materials futures. If you place an order this month, you can avoid the risk of a 10% price increase next quarter."
3. The bottom line: polite exit
Talking skills :
Chinese: "We respect your choice. If you encounter quality problems later, this is the 24-hour technical support channel (with contact information), ready to help you at any time."
English: "While we can't match their price, our technical team remains available if you encounter quality issues. Here's our 24/7 support line."
4. Long-term follow-up mechanism (transforming "spare tires" into partners)
1. Information penetration tactics
Send industry reports monthly (e.g. title : "New EU regulations will eliminate 20% of low-price suppliers" + interpretation of key terms)
Major node push:
"The tax refund for the XX category you are interested in will be increased by 3% this month. Here is a comparison of the new and old policies and a savings calculation table."
2. Emotional bank savings
Customized holiday greetings: Create illustrations of the client's national landmarks + bilingual greetings
Event Care:
When the client's national team wins the championship: "Congratulations to Team XX for winning the championship! We have customized a commemorative edition product shell (with design draft attached), and the first batch of orders can apply this design for free."
3. Opportunity to become a regular employee
Case : A lighting manufacturer sent energy consumption comparison data to its “spare tire customers” for two years. When the competitor’s delivery delay caused the customer to run out of stock during the peak season, it immediately airlifted the stock and eventually became the main supplier.
5. Key minefield warnings
1. Never slander your opponents :
Bad Talk: "The waste materials they use will cause problems sooner or later"
Correct statement : "This is a video of a third-party laboratory testing different materials (without mentioning competitors)"
2. Avoid passive price reduction :
When the customer lowers the price by 5%, do not agree directly. Instead, you should exchange the following conditions:
"Accepting this price requires signing an annual framework agreement, and you will receive VIP channel services (with a list of benefits attached)"
Conclusion : The essence of price competition is a war of value cognition. Experienced foreign trade people use the four-step method of "exploring demand → shaping value → making concessions → diligent irrigation" to convert 60% of price-cutting customers into long-term partners. Only by understanding the pain points of the customer value chain (such as end-user demand and hidden costs) can we escape the low-price red ocean.
"What is more dangerous than offering a lower price is letting customers forget why you deserve a higher price." - 20 years of practical experience in foreign trade