Tips for Negotiating with Suppliers ( Free Amazon Course Video 29) Video Lecture | Start an Amazon FBA Store: Learn and Build - Home Business

what's going on guys and welcome back to
my channel in this video I'm going to
give you guys some tips on how to
negotiate with suppliers as well as some
pointers on how to get in the right
mindset when doing these negotiations so
in my past few videos I give you guys
three templates on how to approach
suppliers so you already know how to ask
for a sample quote shipping quote a full
order quote and essentially place an
order but those templates are great and
I do really like them they provide a
great structure if you haven't use them
already you can also play around with
them and combine combine them make them
your own whatever works best for you but
they're not going to give you a exact
skill set for negotiating with suppliers
and this is because all suppliers are
gonna respond to you differently they're
gonna have different questions or
comments different details they want to
discuss so you're gonna really need to
be able to adapt and have some sort of
negotiation skills in order to get that
best price or that lower quantity that
you want so that's my first big thing
just keep in mind all suppliers are
different and just be aware of that you
can use a template for everything next
this is something I've mentioned quite a
few times but it's think I communicate
like a big business you won't be
perceived as a big business so you get
better service better prices and they
take you seriously so make sure that you
always keep in mind
act like you're from a big company and
that's how you're gonna get the best
results also don't get discouraged I
know a lot of people are gonna get
discouraged right away if a supplier
says no to a certain quote or some
certain quantity and you're just gonna
feel like you've been rejected but there
are plenty of suppliers out there just
move on and go to the next one
keep in mind that a lot of these
companies if you're not ordering right
away in large quantities they might not
want to work with you and it's not a big
deal this happens to people every day so
just move on to the next supplier
another tip I have to guts is to anchor
the conversation so if you suggest a
price or suggest a certain topic you can
actually build a conference conversation
around that topic or that price so for
example if you say can you do an order
of 500 of this product at $2 a unit when
you saw the asking price was 230 a unit
it will just help you guys have a
starting point for that price so you can
sort of tailor the conversation around
that lower price that you want that's
something you guys can do
like doing that as well and something I
found really useful to me another tip
for you guys I have is make sure that
you're knowledgeable and that you know
what you're talking about when to go
skating it's never good to go into
negotiation completely blind so I always
do recommend to you guys like I did in
the templates get quotes based on
different quantities so you could see
the different cost breakdown for
shipping I'm for price per unit it'll
just help you have a better idea
also ask different suppliers for quotes
so you can see if one supplier is
overcharging you if everyone started
asking in one price range and then we're
gonna try some weight out here you can
see that there must be something wrong
so just be aware of that
also having different quantity quotes
and different supplier quotes is gonna
help you be able to leverage that
information and actually play them
against each other in some cases so you
can tell a supplier hey I got this same
quote for the better product for this
supplier are you able to bring your
price down a little bit things like that
are useful to you as well
but when you're doing that make sure
that you know or that the supplier knows
that you're actually trying to build a
long-term relationship with them if
they're willing to accommodate next tip
for you guys is don't be afraid to ask
so this sort of goes along with
anchoring a little bit but if there's
something that you want like a price
that you want or a certain feature or
service that you want that isn't being
offered you'll never know if you can get
that without asking so just ask
respectfully make sure that it's not
completely ridiculous or your suppliers
probably just gonna stop answering you
completely make sure it's something that
actually makes sense to this they can
actually work with and you have a good
chance of getting it as long as you're
playing and ensuring that you're
professional that you're actually
willing they could build a long-term
relationship with the supplier also when
doing this and throughout the entire
negotiation process really make sure
you're very clear on what you're
negotiating along the time these
suppliers manufacturers that you're
talking to do not have English as their
first language a lot of time it's
starting to the second or third language
so there could be some miscommunication
based because of the language barrier
but just make sure that everything is
very clear and you guys have a mutual
understanding of the terms of your
agreement and all of that another tip I
didn't touch on briefly in the last
video is do not mention Mo Kio or
minimum order quantity so I found that a
lot of suppliers and manufacturers if
you first off start by saying what's the
minimum work
with the lowest price in North wanyan
that can order any variation of that
that can be an immediate turn off
because they think right away okay this
guy wants to do it's just small order
why waste their time on him when we can
be talking to one the other hundred
people that have messaged us that
actually want to build future business
with us so don't even mention that you
can't go about it the way I did in my
last template which I showed you guys
which is referred to that as a sample
order a smaller order but do not say the
words moq is a turn-off for a lot of
suppliers lastly something that a lot of
people overlook is thinking long term
and building a lasting relationship so a
lot of people getting into Amazon FBA
they just want to make that money they
see these people doing thousands of
hours every month and they want to quit
their job and do it exactly what they're
doing but keep in mind this is a
long-term game game if you really want
to build a reputable brand and be in
this for the long run you have to
understand that you can't make silly
mistakes right at the beginning so don't
be focused on the first order but be
focused on orders to come and building a
good relationship with your supplier so
that years down the line from now you
can still have a reoccurring income from
your business so what I mean by this is
if you can't get that lowest price on
your first order it's okay of course you
aren't going to be paying a little bit
higher based on the lower quantity order
but that's okay taking the considering
taking into consideration giveaways and
things like that can be discouraging at
times but it's all taking steps to build
your business for the long term you want
to do all that so don't give up on
supplier if they're really good just
because they can't get you that super
low price that you want for your first
order for your next order when you are
ordering and larger quantities you'll be
able to get that price down and you'll
have to worry about it anymore so just
keep that in mind guys also do little
things like just asked how your supplier
stays going like talk to them like
they're a human not a robot they are
they are people they do appreciate that
like I'm sure you would as well also
around the holidays you guys might
notice if you've done a lot of business
with someone they might send you a
Christmas card or a gift something like
that these suppliers in China they will
do that to you as well like they show
appreciation for your business and if
you can actually become friends
of course it's not going to hurt your
business that can only do do good for
you so you can build a stronger
relationship maybe get some better
prices and yeah that's my biggest tip
for you guys something a lot of people I
think forget about when doing this they
just think about the bottom line and
what they're doing but they don't think
about their actual manufacturers and the
people behind the other business as well
so thank you guys so much for watching
if you like this video give it a thumbs
up in tomorrow's video I'm gonna be
giving you guys a quick explanation on
how to calculate profit so before you
actually go into these negotiations and
everything you actually know if your
product is profitable and if it's even
worth it so if you guys enjoyed this
video like I said give it a thumbs up
and stay tuned for tomorrow's video then
after tomorrow's video we have a final
creating a shipping video and then we'll
be on to the next module which is
creating a listing so thank you guys so
much for watching and I'll catch you in
the next video