As a buyer or a company owner, will you tell the new supplier your target price?
Do you often be asked about the target price when you inquired a product at the show? Or you send the inquiry on a B2B website, the reply is often that do you have a target price?
If the answer is no, some salespeople will tell you that the offer will make no sense if there is no target price.
One of a friend told me that when he was inquiring, he would say a number lower than his target price if the supplier asked for the target price. if the factory really can meet the price, then save the procurement costs. Or take more negotiation.
At the other side, there are many factory owners also complained that the customer just asked the price of a product, no specific requirements, and no quality requirements. They do not know how to quote. So they have to ask the buyer`s target price and make the corresponding quality products according to the cost.
Personally, I prefer the target price to be the last step in a business negotiation. The price should be discussed after all the details are confirmed.
If the offer is too high, you can show your last price to let the supplier find a way to change some details of the product, or reduce the profit to meet your price requirement.
So, when do you think it`s better to talk about the target price? Should we tell the supplier the real target price?