Student Question:
Hello, Master. I’d like your guidance on a negotiation situation. Our company is looking to purchase a batch of Japanese-imported soybean harvesters from another company. Their opening price was 5.99 million — far above the actual market value.
We made our position clear: this figure cannot serve as the basis for negotiation.
Their representative didn’t answer directly. Instead, he changed the subject and went to great lengths to highlight the product’s quality and superiority. So we asked: “How many companies manufacture this type of product in total? And on what grounds does your company claim your product is superior to American soybean harvesters?”
At that point, the representative turned to his assistant and asked: “When was this price set?”
His assistant, immediately grasping the intent behind the question, answered without hesitation: “It was set a month ago.”
The lead negotiator then smiled and said: “Hmm — that was quite a while ago. We’re not sure whether this price has changed. I’m afraid we’ll have to go back and consult with our general manager.”
The second round of negotiations is coming up soon, and we’re not sure how to approach it. We’d appreciate your guidance, Master.
Master Chi’s Response:
First, before the negotiation begins, you need to do your homework thoroughly — not only on the domestic market, but also on American-imported soybean harvesters. Study the Japanese product’s performance, specifications, quality, and the full landscape of comparable alternatives.
When negotiations resume, start by easing the atmosphere and warming up the relationship. Then re-verify the product’s current market price.
From there, conduct a detailed analysis of their second offer. Ask yourself: is there padding in this price? Based on that assessment, make your counter-offer.
If they reject it outright, that’s your signal — it’s time to demonstrate your leverage and go on the offensive.
Be direct and open: “In this procurement process, we specifically selected your company from among several candidates. That alone shows the sincerity of our interest in working together.”
State the price you consider reasonable. If they push back and want to raise it, tell them that any adjustment still requires internal approval and will take additional time. This puts them in the uncomfortable position of competing against third parties — let it slip, at exactly the right moment, that Companies A and B are still waiting on your invitation. Share with their decision-makers just enough about your conversations with those other companies.
This move will systematically dismantle their confidence in holding firm. They’ll find themselves trapped: either cut the price to close the deal, or walk away with nothing.
If they settle for thin margins, they go home disappointed. If they walk away after investing considerable time, effort, and negotiating resources — they’ll have a hard time explaining it to their own company.
At this stage, acknowledge their negotiating skill and the genuine effort they’ve put in. Then make it clear that your company’s policy leaves absolutely no room for further flexibility. If they pass on this opportunity, you’ll have no choice but to move forward with Company A or Company B.
From their perspective, closing the deal means profit. Walking away means a loss. The odds of reaching an agreement are very much in your favor.