Action - Create Counter Offers
In this video, we're going to create counter offers for this product here. The price per unit is listed as $5.70. Since we have nothing to lose by sending the supplier message. I'm gonna ask if they're willing to lower the price to $2.50 and I know that's a huge amount to lower the cost per unit. And my guess is odds are they're gonna say no. But since we have nothing to lose, I'm going to give it a try. Now. Let's find that supplier over here and send them a message. You can look to our alibaba message cheat sheet and get some ideas for message templates. But a lot of times when you're negotiating, you don't need a template instead, you're just going to be reading their reply and then keeping in mind what you're looking for and then seeing if they'll comply with what you're asking, I've decided to change how low I want to go on the unit price. And I'm gonna say $2.80. Also gonna let them know that 200 pieces might be too low for that price. I would be willing to increase my order size...
if you can lower the unit price. Thanks eric and there we go. I'm gonna send this message and see what happens. Now. I've just sent a message to them and to keep myself organized. I'm gonna make a note on our supplier comparison sheet. Now that leaves us with three suppliers left that we can Negotiate with one of them here is only a dollar 13 per unit. And for that reason I'm gonna double check the website because I'm very curious to find out why that unit prices so low. One thing that's interesting to note here is the price per units that's listed is 3 to $4 per unit. But they're quoting a dollar and 13 cents and that's why you always want to send a message to the supplier and not take this price at face value. The reason why this product is so cheap. It seems like is that this is a slightly different product than the one we were after. And if I were to take a look at the type of leash that I was initially interested in, we'll see that it had a very distinct handle to it that this leash here doesn't have. So here's the type of product I was hoping to get with that handle right there. I'm gonna make a note of this in our supplier comparison sheet And that was the dollar 13 per unit. Not exactly the product I am looking for doesn't have grip for a handle. If we take a moment to think back. And remember when we calculated the five x. rule, I remember that we expected to sell the double dog leash for around $15. And that means we wanted to purchase the product with shipping included for $3 per unit. And for that reason we're looking for a seller that can sell it at $3 per unit. But that includes shipping and to make up for that extra shipping cost, I think it's safe to say that we want to find the product at a cost of $2.50 per unit or lower. I think finding this dog leash at $2.50 was a little too much to ask for for this supplier which quoted at $5.70. But for these two suppliers that are quoting $3.70 and $3. I think it's more reasonable. And I'm also going to say that I know this price maybe a little bit low for you but I'm willing to go a little bit higher on the minimum order quantity. And that's because if they're able to get the right unit price for us, I think it's safe to consider ordering two or products at once. So let's send a message. Now the first one I'm gonna do is New mail. So I'm gonna look for the supplier up here and I found them right here. Now I'm gonna say hi Kelowna, thank you for the quick response. The product looks great. Unfortunately the unit price is a little too high for me. Would you consider lowering the price per piece to $2.50. I can increase my minimum order quantity if you lower the price per piece. 22 50. Thanks. And since I'm sending a very similar message to the other supplier, I'm just gonna copy this. So now that I've sent that response, I'm gonna go back to our sheet and make a note of that. So I was a new meal. Send message. They lower it to and I'm going to send the same message to the supplier over here and that supplier name Izzy Woo senior. So I'm looking for that. Here it is. And I'll send a message, make sure I get the name right and send that message. And now make a note in the Excel doc. As you can see there's nothing special to this process of negotiating with suppliers. The most important thing is to realize that everything is negotiable and always be friendly when you're talking to them, but don't be afraid to ask if they'll lower the price. And the worst that can happen is they'll say no. In this video, we evaluated some of our supplier offers and started to negotiate. In the next video, we're going to run our suppliers through the supplier, scoring rubric, pause this video right now and don't move on until you've created counter offers