Monday, October 16, 2017

Chinese Discounts And Negotiating

I was on a team-building annual company conference in Thailand at a hotel surrounded by tourist shops selling gold jewellery. The Chinese boss (of either sales or the accounts department if I remember rightly) fancied a gold necklace in a shop.

It was more than she wanted to pay. Because whatever the asking price was, being Chinese she regarded that as an opening price, which was negotiable. She negotiated that she could have it at ten per cent discount plus a bonus (more likely half price!) if she got thirty people to come into his shop and buy at 'ten per cent discount').

She went back to our group at the company conference and told us all that we would get 10 per cent discount at that shop. She told those unwilling to buy, or not interested, that we didn't have to buy but to do her a favour and guarantee the discount we all had to go. Naturally, several of those who had not wanted to go and buy ended up buying.

At the time we were astonished at her boldness and foresight and cunning. Being British we were used to fixed prices, which are often fixed to stop rival shops undercutting. The price is the same everywhere. You don't get penalised from buying in the city centre by the tourist hotels, nor from a remote location, because the manufacture demands the same price everywhere.

This is a standard sort of deal negotiated by big travel companies in China and all over the world. We bring a coach load or a conference load of people to your restaurant or shop. Give them ten percent discount as an incentive to go to you, plus a commission to us.

Angela Lansbury, travel writer and photographer, author and speaker.

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