At the beginning of 2018, RMB against USD has risen to 6.267 and it does set a new record in the year of Dog. It appears that the price of our phone charger will climb higher and it’s really a nightmare for charging enterprises with dollars that haven’t been settled and they are about to suffer a large amount of money. Meanwhile, industrial raw materials such as steel, paper, plastic parts are in short supply because of the appreciation of RMB with Chinese government’s severe policy towards environment protection. In consequence, the price of raw materials keeps going up and there is no doubt that the Chinese exporters face double pressure and foreign traders are torn how they are going to communicate with their customers and persuade them to accept the increase of price. Foreign trader Ben had a customer called S who had confirmed the PI and got ready to open L/C while according to the confirmed price, Ben’s company was about to suffer a deficit on this order. So what can Ben do to convince his client?
It should be pointed out that we must raise the price but what can we do to make them accept it willingly?
Remember that we should raise the price at one go as it’s within the bounds of reason and no one is up for sustaining losses in business. Therefore, we shall be determined to negotiate with customers on the price and make no concessions in case of arousing any customers’ fanciful thoughts to force price down. By doing so, we may manage to prevent customers from misunderstanding that we are about to raise the price for higher profits.
Have detailed explanation of the increase in price and we can only convince our customers with evidence. It’s also recommended that we utilize some data or tables to directly embody the objectively existing influence factors. Avoid creating excuses out of nothing by all means! You are never going to have your customers trust you with your inane excuses.
Maintain your customers at ordinary times. A close of deal should be an issue of happiness which means those ridiculous efforts like hesitation or sacrificing your profit to compromise are not required at all. However, some regular customers deserve to be maintained.