Fixing the Best Price
 
When the complexity of a product increases, the complexity of the selling process increases proportionally. Especially in the business-to-business sector, the selling of products to Chinese buyers is a complicated and time-consuming business. 
 
Once negotiations start, we in the West want to know what kind of product we can get for what investment. Having a specified price index helps to motivate us and indicates why we need to pay a certain amount for some things. This is how we create an apparent world for the buyer, who via a number of necessary add-ons will almost always end up higher than the low basic price. 
 
Our experience has taught us that this does not work in China. In contrary, it will likely give the impression that he or she is saddled with all kinds of additional costs. Eventually, a discussion will follow about who was responsible for this and the buyer will aim to get, at least, the minimum price including all extras.
 
It is best not to divide the total product into different parts and budget these separately, but to name the total price instead. This allows one to offer the add-ons as “give-away” during certain moments in the process without having to lower the price (!). Another tactic, to use in some scenario’s, is to undress the product and in doing so decrease the price a little.  
   
However, be sure that the product that remains meets the client’s demands!
 
Going for the quick wins, doesn’t pay off in China as well.