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Whats the best response to a Seller asking " Whats your target Price? "

Discussion in 'General Business Forum' started by mayfair, May 22, 2020.

  1. mayfair

    mayfair UKBF Contributor Free Member

    36 0
    Lately with this COVID19 PPE supply lot of sellers/manufacturers asking whats your target price or how much are you looking to pay for it ? Its difficult to answer as dont want to shoot in you own foot by give them a high price range .
    Whats the best and polite response via text or email ?? (Also so that they send all prices .)
     
    Posted: May 22, 2020 By: mayfair Member since: Apr 12, 2013
    #1
  2. dotcomdude

    dotcomdude UKBF Enthusiast Full Member

    510 104
    Tell them a price that you'd be happy to pay!
     
    Posted: May 22, 2020 By: dotcomdude Member since: Jul 27, 2018
    #2
  3. mayfair

    mayfair UKBF Contributor Free Member

    36 0
    but don't u think so that's risky as his price might be 50p and i told my price is £1.20. He is then not going to quote me below £1. Also sometimes as a buyer you dont know whats the best price to buy it for due to new products in the market.
     
    Posted: May 22, 2020 By: mayfair Member since: Apr 12, 2013
    #3
  4. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,535 1,293
    Don't bother with suppliers that ask you this question.

    Full stop.
     
    Posted: May 22, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #4
  5. dotcomdude

    dotcomdude UKBF Enthusiast Full Member

    510 104
    If you're happy to pay £1.20, then where's the problem?

    If you don't know what price you'd be happy to pay, then you need to research more...
     
    Posted: May 22, 2020 By: dotcomdude Member since: Jul 27, 2018
    #5
  6. Aniela

    Aniela UKBF Regular Free Member

    201 29
    In this PPE instance they're usually asking this because a lot of them are third-party sourcing.

    That's why they're asking you you're target price. They're hunting around for stock themselves and knowing your price enables them to see if they can get it elsewhere than they normally do.

    Pricing isn't as 'standard' at the moment because it's a very hardcore supply and demand situation at the moment.

    (Working for a client dealing with PPE at the moment, which is where I get this info from.)
     
    Posted: May 22, 2020 By: Aniela Member since: Mar 28, 2020
    #6
  7. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,535 1,293
    . . . . . And therein lies the problem.

    You'll be shown a sample from one factory and be sold the production from another factory.

    Very dangerous when it comes to PPE.

    Be careful with shipping prices, if you're planning on importing from China at the moment.
     
    Posted: May 22, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #7
  8. The Byre

    The Byre UKBF Legend Full Member

    9,991 4,065
    Germany is awash with PPE as the government ordered far too much and now nobody knows what to do with all that PPE.
     
    Posted: May 22, 2020 By: The Byre Member since: Aug 13, 2013
    #8
  9. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,535 1,293
    Perhaps keep it for the second wave.
     
    Posted: May 22, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #9
  10. Mister B

    Mister B UKBF Ace Free Member

    2,448 567
    Why's that then? Is there further trouble afoot?
     
    Posted: May 22, 2020 By: Mister B Member since: Aug 31, 2007
    #10
  11. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,535 1,293
    No space and huge backlogs.
     
    Posted: May 22, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #11
  12. paulears

    paulears UKBF Big Shot Full Member

    4,336 1,118
    I had this, this week. An Alibaba enquiry came back with a $260 per unit price. I can buy a European branded product for around £300, and was expecting a price around $50 a unit, so I responded saying thanks, but the price was too high and I got the "what do you want to pay" reply. I considered the first price an attempt to see if I was gullible, and I walked away from this company.
     
    Posted: May 22, 2020 By: paulears Member since: Jan 7, 2015
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    22,989 2,772
    Couple of years back a particular maker of a product asked the company I had dealing with him what they'd be willing to pay. They told him a low figure, figuring start of negotiations - and he walked away. Took them 6 months to find someone else willing to make the item and ended up paying less than they had planned on negotiating first maker down to. Minor cost saving of about 300 dollars an item for the few he's making.
     
    Posted: May 22, 2020 By: Mr D Member since: Feb 12, 2017
    #13
  14. ecommerce84

    ecommerce84 UKBF Regular Free Member

    789 256
    Apparently we’ve just had the second wave.
     
    Posted: May 22, 2020 By: ecommerce84 Member since: Feb 24, 2007
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    22,989 2,772
    So quick we missed it?
     
    Posted: May 22, 2020 By: Mr D Member since: Feb 12, 2017
    #15
  16. SillyBill

    SillyBill UKBF Regular Free Member

    171 75
    This, what a silly question really. If anyone were to ask me my target price I would answer "Zero". Same principle as being in Morrison's, if someone was to say to me at the tills, what do you want to pay for all this stuff? A: Well, preferably, nothing.

    I am a manufacturer and we price at our desired margin level. The customer doesn't decide what they pay, we do. If the customer goes elsewhere, good luck to them, someone can either make it cheaper or is a busy fool. Usually the latter. But they don't last long. If the customer wants to do business at MY price level, then great.

    A lot of suppliers trying to get my own business typically ask what I am paying with an existing supplier. A sales tactic that I don't fall for. I never advise this, equivalent to someone asking what hand you have in a game of poker and you telling them. They should know their own market. In the very early days of business I may have done, and quelle surprise. the quote would be a token amount below what we were paying. I prefer to play that game on my own terms so I typically say "give me your best price, a price you are comfortable doing business at and if it works for us we'll do business, if not, we won't". It cuts the charade then, sometimes I am pleasantly surprised, others it reinforces the value of an existing supplier. And if they can suddenly knock a load more off on feedback they were too high... I refer them back to the "give me your best price" and ask why it wasn't their best price? Alarm bells ring with that sort of tactic as I have been around long enough to know that "margin creep" is also a hazard. If you know from the start the prices are all over the place you can bet over time they are a company that will squeeze you for more and more, pinching a little extra on top of Mr market each time. For this reason, trust is everything for me so I won't be swayed by a few pennies off.
     
    Posted: May 23, 2020 By: SillyBill Member since: Dec 11, 2019
    #16
  17. atmosbob

    atmosbob UKBF Ace Free Member

    4,397 1,036
    This was a corny line in the markets of Istanbul in the 60s.
     
    Posted: May 23, 2020 By: atmosbob Member since: Oct 26, 2009
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    22,989 2,772
    Ummm…. customer does decide what they pay.
    They decide if willing to pay your price or not.
    They can choose not and perhaps go elsewhere, perhaps not buy the product or service at all.

    If they decide to pay your price then great.

    As for suppliers - yes asking what you are currently paying is a pretty standard sales technique. For big companies its quite possible that the price a small shop pays per unit for a product isn't the price that a chain of 8 stores will pay per unit for it.
    Undercutting the competition is allowed - don't want to undercut them too much!

    Can be worthwhile sometimes to get a price from a sales rep - then take that price to existing supplier. Sometimes they can negotiate to keep the business you were intending to provide them with anyway!

    Say you pay £10 per unit and new supplier offer you it at £9.50.
    50p per unit saving. Yeah, big deal I know. :)
    So you take the offer and current supplier matches it - you have done one or two phone calls and maybe 10 minutes work for 50p per unit saving.
    Now times that 50p by 10,000. Its a decent saving. :)
     
    Posted: May 23, 2020 By: Mr D Member since: Feb 12, 2017
    #18
  19. Talay

    Talay UKBF Big Shot Free Member

    3,832 800
    We've solving that problem.

    I've initiated a project of refusing to buy anything which comes from or has any component which comes from China.

    All suppliers put on notice that replacement products must be sourced or we will not be buying.

    Permanent game changer. Buying British wherever possible.
     
    Posted: May 23, 2020 By: Talay Member since: Mar 12, 2012
    #19
  20. Mr D

    Mr D UKBF Legend Free Member

    22,989 2,772
    Great. You are part of the niche that will pay higher prices and buy British. There are businesses that supply you with certain goods.
    Be missing other stuff because there simply is no supplier yet.

    Umm... What are you going to posting with when your current machine stops working? May take a while for the made elsewhere electronic industry to widen it's range of components.
     
    Posted: May 23, 2020 By: Mr D Member since: Feb 12, 2017
    #20