Question

How might negotiating a sales contract with a Chinese supplier differ from dealing with a German supplier of materials? Write in 500 words the difference and why

Answer 1

Negotiations :-

Negotiations are deals done between two counterparties to come up with new and improved contract where both parties are at a place of benefit.

With countries, the negotiation tactics differ based on the cultural and legal implications involved.

China and Germany comes under CISG(contracts for the international sales of goods) .So many terms and conditions are ratified . Both the countries are pretty specific about the terms and conditions of the contract .

Negotiation with Chinese suppliers :-

With China, one needs to emphasize on quantity and be realistic on quantity of orders or services placed to them.

Price need to be set as Chinese suppliers are generally habitual of negotiations.

Clear and concise about quality demands before negotiating.

Stay up to date with legal cost , raw material costs, shipping and processing charges to arrive at a fair price for the deal for sales contract.

Negotiation with German suppliers :-

Germans are fond of high quality data driven businesses. So a thorough detailed analysis needs to be taken care of before getting into the deal.

One needs to avoid over elaborating and pitch in to strike a deal with clear and concise points to begin with.

Credentials matters much to Germans because they believe in dealing with businesses formally. Plans needs to revolve around the same while negotiating.

A track of follow up of the sales contract process is a must as documentations are needed to back up the decisions and also when any legal implications arises during the deal.

Moreover, the values, norms and ethics are different for every country , so the pitch and negotiation should be revolving around considering all these aspects of the country specifically.