How to deal with When customer says price too high

Many foreign salesmen will encounter such a problem: after sending  the quotation to the customer, the customer does not reply, and when you call, they say your price is too high.

Why our customers will say that, here are some of the analysis as follows:

First, they are cheating you. That means they deliberately say your price is too high so that you can lower the price. Customers in India and other countries often do that. And they would like to send the quotation frome other factory which actually is made by themselves.

This situation is generally the customer's problem which is the petty intrigue in inquiries. In this case, you can persist for the prices unchanged. There was one instance, an Indian customer give a false price to a salesman. And then the salesman bring it to ask several factories to check whether the price can accept, but the factories reply that the price can only be accept in a few years before and even the defective products cannot be made by this price. Then the salesman told the customer he can not accept the price and he can choose to accept the price he offer or he will need to find another supplier. Finally, they customer start business with the salesman after a while. 

Second, customers get last year's market price comparison

Sometimes when customers bargain, almost the same price, but the price is difficult to accept or no profit for the company, and you ask the customer, he said that he bought at this price by last year. Under this situation , the first thing you need to do is that communicate with your customer patiently and explain to the customer why the price is different from the last year. That requires your fully understanding of your product and industry and also the costing. If you are a freshman in foreign trade, you'd better provide some different price of your competitors to your customer so that he can feel better. In the meanwhile, you need to let the customer know that you have offered him the lowest price and everything will be settled down after the customer figure it out.

Third, some foreign trade companies or competitors want to get your cost price.

Some foreign trade companies or competitors will get the cost from the other competitors by demanding a lowest price so that they can arrange the market price easily. In this case, you can only judge it by experience. The solution is to maintain the market price. 

Fourth, customer demand leads to high prices

For example, you are exporting solar panels. A customer needs 250W, but after you offer a price, the customer says the price is too high, then there are several circumstances: first, the customer may be only wants polycrystalline but you have quoted him the price of monocrystalline  (while the monocrystalline is normally more expensive than polycrystalline); second, customers need low-end product with not so long lifespan. In fact, many factories can do this kind of products. So in this case, you will need to have a good communication with your customer which better you raise these questions to the customers so that he can understand why your price is high and will feel your profession.

Therefore, when customer says your price is too high, or gives you a seemingly very tricky target price, the first thing we should do is to check our price and check whether the customer's data is updated or the price is consistent with the customer's needs.Then the problems will be more easy to handle.