What are the best strategies to negotiate pricing with foreign suppliers during a crisis?

1 Understand the market situation

Before you start negotiating, you need to do your homework and understand the market situation of your supplier's country and your own. How is the crisis affecting the production, transportation, and consumption of the goods you are importing or exporting? What are the current and projected prices, demand, and supply of the goods in both markets? How are your competitors and customers reacting to the crisis? By gathering relevant and reliable information, you can assess the impact of the crisis on your business and your supplier's business, and identify the opportunities and challenges for negotiation.

2 Communicate clearly and frequently

Communication is key to building trust and rapport with your foreign suppliers, especially during a crisis. You should communicate clearly and frequently with your suppliers about your expectations, concerns, and needs, and listen to theirs. You should also update them on any changes or issues that may affect the delivery or payment of the goods. By communicating regularly, you can avoid misunderstandings, resolve conflicts, and maintain a positive relationship with your suppliers.

4 Leverage your strengths and value

While being flexible and creative, you should also leverage your strengths and value as a buyer or seller. You should highlight the advantages and benefits of working with you, such as your reputation, reliability, loyalty, quality, or market share. You should also emphasize the value and differentiation of your goods, such as their features, functions, or branding. By demonstrating your strengths and value, you can increase your bargaining power and justify your pricing.

5 Review and monitor the agreement

After you negotiate and agree on the pricing with your foreign suppliers, you should review and monitor the agreement carefully. You should document the terms and conditions of the agreement in writing, and verify that both parties understand and comply with them. You should also monitor the performance and feedback of your suppliers, and track the market situation and trends. By reviewing and monitoring the agreement, you can ensure its effectiveness and validity, and make adjustments if needed.