About Andrew Hupert

Andrew is consultant based in Shanghai who has been working with the Greater China market since 1991. His specializes in helping new China entrants with sales management, marketing and negotiation. Contact him here.

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« Problems, Pitfalls and Traps to avoid when hiring consultants and service providers in China. | Main | Successful Negotiating in China: Be Yourself »

Negotiating in China: Getting the Deal vs. Doing the Deal

By andrew | March 6, 2007

Negotiating with Chinese service providers is a 2-step process.  First, you must agree on terms, pricing, measurement, delivery methods, etc.  Next, the service provider must actually execute the services or deliver the product that you both have agreed to.

 

Unfortunately, those two steps are often wholly unrelated.  Experienced managers in

China will tell you that the larger the deposit or up-front payment, the wider the divergence between the “Getting the Deal” and the “Doing the Deal” processes.

 

When you are structuring your negotiations with service providers or producers in

China, don’t get fixated on the short-term hassles and inconveniences of trying to sign a contract.  I often see westerners get so emotionally involved in a specific negotiation that they completely lose sight of the fact that they will be living with the outcome of this deal for years and years.  This includes a WIDE range of issues, ranging from honest and integrity of a salesmen to the competence of an employee to the time management skills of a consultant. 

 

The guy who can’t show up on time for your negotiation isn’t going to suddenly learn to follow a schedule after you go home.  The consultant who doesn’t return calls BEFORE you pay him surely won’t start checking his messages AFTER he has your money.  That obstinate partner doesn’t get more flexible after receiving your IP or deposit.  And NO ONE ever gets more honest or trustworthy after the contract is signed. 

 

Doing business and negotiating contracts in

China is very difficult, and it is natural to try to make some progress during the limited time you are visiting on business.  But remember – you will have to live with the consequences of this deal for a looong time.  Avoid picking the “least worst” counter-party, and keep looking until you find someone that you feel you can rely on for the next 5 years. 

Topics: Business Entry |

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