Negotiation is very important.Comment from customer "1st quote from India always come high."
Softer Aspects while India Sourcing
In India, MRP (Maximum Retail Price) needs to be mentioned on product. Whereas in some countries the price is mentioned on the shelf (not on product) where product is displayed. The psychological aspects of these are:
- India: Seller start the discussion from maximum figure.
- Foreign buyers: they decide (buying or not-buying) on first quote (shelf price) itself.
Key here: In order to get the things at your expected price, you might need to negotiate.
Emails are one way communicationComment from customer "My email has not been replied"
Especially SME factories in India consider emails as one-way communication. Outside India, emails are 2-way communication.
Let’s study a situation: ‘Buyer from Europe has sent email to factory in India’, now in the mind of:
- Factory people in India: They will read the email and will work hard on it (but no acknowledgement/ reply).
- Buyer from USA: He will be confused, if his email has landed to right person? Are they working on it?
Key here:
- For Indian Suppliers: The buyer is expecting a confirmation even if you have understood everything and noted.
- For overseas buyer: You may need to call to check if email is noted and understood.
Commitment is perceived differentlyComment from overseas customer "you committed to..."
When there is a commitment between supplier and customer, they perceive it differently.
Customer’s expectation (from supplier): We will leave everything and focus on this task
Indian Supplier: We will do our best!!!
Decision Making ProcessComment from overseas customer "I need to meet the decision maker..."
In Europe/ USA: Boss takes FINAL decision
In India: Boss takes all the decision. Even if it is a small decision of starting the work.
The below aspects are author’s understanding only, not the guidelines. These are aimed for information purpose only, nothing more. Author requests readers to assess their situation from all aspects and not take reference from this post. The author will not be liable for any outcome arising out of understanding of readers of this post.
