Selling to Westerners and Western companies:

Many experienced Chinese sales professionals are accustomed to building a relationship with a prospective client first, and then waiting for him to bring up the issue of buying products or services. While this might serve you will in China, it is not too effective when dealing with western clients or even with Chinese buyers at western companies.

Chinese businessmen start with the relationship, and conduct transactions based on their feelings of trust and understanding.

Western businessmen, however, usually start the business relationship with a transaction, and will base their feeling and personal assessments on the results of the deal.

Thats why many western businessmen seem to rush into negotiations for small quantities, while their Chinese counterparts take a longer time to develop larger-scale deals.

How can Chinese salespeople deal with this? Here are a few ideas:

1) Always be ready to discuss a price.

2) Be very clear about which of your company's products or services the customer will be interested in, and know how he can best use them in his operation. Stay focused on the transaction that your customer cares about. Dont try to sell other things until you have satisfied his #1 need.

3) Be ready to talk about how the product or service will help the client's business or the client himself.

Western business is transaction-based, while Chinese business has traditionally been relationship based. The good news is that both methods can end up building strong, long-term business relationships. But many Chinese sales professionals have a hard time making that first sale that will open the door to western companies. These ideas may help:

1) Don't try to be friends by pouring drinks, lighting cigarettes or kissing butts . It doesnt work (at first -- but it may work just great after the initial transaction is done). Westerners in China are afraid of getting cheated, and too much entertaining and gift-giving makes you look like you want to soften him up for something unfair or dishonest. Western salesmen present themselves as partners and experts who have knowledge that the client needs. Be polite and direct, but try to maintain a professional attitude and dignity.

2) Be ready to discuss price and deal terms very quickly. In China, you would never bring up price or contract terms during your first lunch meeting, but in US this is quite common. In this situation, there are two things that you must remember. First --your prospect may have a very tight schedule (particularly if he is visiting from overseas). Second -- many western businessmen will make judgments about your company based on the way you structure a deal.

Asking about price doesn't necessarily mean that he wants to buy. He does, however, want to know that you know what youre talking about and that you are reasonably honest.

The price discussion can be handled in several ways. Sometimes you will have a standard price or rate, and you can simply start the price discussion right away. You may not be comfortable doing that, but once the client asks for a price you are obligated to address the issue in some way. You dont have to go into too much detail, BUT YOU DO HAVE TO GIVE AN ANSWER RIGHT THEN AND THERE. If you delay or evade the question, you will look dishonest or unprepared.

3) You are expected to make the first offer. Salesmen like to wait and let the customer make the first offer. That may work for some types of products particularly if the market is not very formal or if the asset is unique (such as real estate). But in B2B sales, most buyers will expect you to have a price ready. Remember the price is more than just a number. Your buyer will make judgements about you and your company based on the package you are offering, so make sure you can explain it thoroughly and defend all the terms and conditions.

4) Your first price should be reasonable. Assume the buyer has some knowledge of the market pricing structure. If your initial offer is unreasonable, you will lose the customer. DONT ASSUME THERE WILL BE A COUNTER-OFFER. If the buyer feels your price is too high or structured badly, he may not come back with another offer.

5) Western clients like breakdowns and explanations of prices and costs. This seems like it can be a problem if you are charging for your own services, but don't be overly concerned. Buyers know that you plan on getting paid for your work, and you shouldnt be afraid of showing a service charge, consulting fee, or some other charge that indicates that you are receiving payment for your work. Make sure that your cost breakdown is comprehensive, logical, an d defendable. Be prepared to talk about specific discounts for specific actions, like larger orders or longer commitments. Know in advance how low you are willing to go, and try to respond quickly to counteroffers. Avoid saying, Ill have to check with my boss. It is better to say, We'll get back to you with our answer as quickly as possible.

6) Offer packages of products and services at different price ranges. Salesmen like to start out with a high price, and gradually negotiate lower if they have to. How does that fit in with other things we've said about keeping your offer reasonable and in line with the market? You can offer a range of products and services that include an initial offer that is high in price BUT also high in value. You will be prepared to lower your price, but at the same time reduce the amount of extra services or value of the product. In the end, you will probably be agreeing to al deal that includes more product and service than your initial offer at a lower price, but you will have reached an agreement. That is what sales is all about.

Dealing with the price question is never easy, but there are certain customs and accepted methods that make it easier. When dealing with Western buyers, be ready to discuss price early, and expect them to analyze your initial pricing proposal carefully. Even if they refuse your initial offer, they will use it to make judgments about you and your company. Prepare in advance, and make sure your present yourself like a true professional.